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Coffee Trader NKG Expands Into China To Tap Surging Demand

By Reuters
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Coffee Trader NKG Expands Into China To Tap Surging Demand

German coffee trader Neumann Kaffee Gruppe (NKG), one of the world's largest coffee merchants, has opened a subsidiary in China, looking to meet surging demand for the beans in Asia's fastest growing coffee market.

The company's new Chinese operation is headquartered in downtown Shanghai, where it has also built a cupping lab for coffee quality control, it said in a statement.

'Closer To Customers'

"We are thrilled to establish NKG Shanghai as our first office in China," said Emily Chua, COO of NKG Shanghai. "This expansion allows us to be closer to our customers, understand their needs better, and deliver tailored coffee solutions. We are excited about the opportunities this vibrant market presents and are committed to contributing to the growth and development of the coffee industry in China."

NKG said it has set up coffee warehouses and distribution operations at the bonded areas of Kunshan and Yangshan.

'This initiative aligns with the rapid growth in coffee consumption in China, driven by an increasing demand for high-quality coffee products,' the company said.

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Coffee Demand

Coffee demand has been growing by double digits in China recently, with a surge of interest for the beverage particularly among young Chinese professionals, who are switching away from the centuries-old tradition of tea drinking in the country.

The number of coffee shops increased by more than 50% in China last year as chains such as Luckin Coffee and Starbucks opened hundreds of new outlets.

Chinese coffee imports from top grower Brazil increased by more than 180% last year, Brazilian exporters association Cecafe said.

Additional reporting by ESM

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