Do you have a dream of  "coffee freedom"?

Once upon a time, coffee suddenly became a necessity in life and work. We must have a cup of coffee in the morning. It seems that we can start a beautiful day. While drinking 3 in 1, 1+2 extra strong coffee, we are thinking about freshly ground... The cultivation of consumers' coffee habits and the pursuit of refined life provide fertile ground for the growth of the domestic coffee machine market. In recent years, unlike most small household appliances, which are relatively weak due to epidemic situation, industrial environment and other factors, household coffee machine have shown a trend of vigorous development.



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Most of them are new purchases

According to the Analysis Report on Market Demand and Investment Planning of China's Coffee Industry from 2020 to 2025, the average annual growth rate of coffee consumption in China will reach 15%, which is far higher than the world's 2% growth rate. It is estimated that the size of China's coffee market will reach 217.1 billion yuan by 2025. Under this background, the growth potential of China's household coffee machine market is self-evident.

Not only the Double 11 super shopping festival, but since this year, despite the complex background of repeated outbreaks and more severe external environment, the growth momentum of home coffee machines has not decreased. From the data of GfK Zhongyikang, from January to October this year, the overall market retail sales of household coffee machines increased by 34.6% year on year to 2.06 billion yuan, which is close to the level of last year (2.07 billion yuan in 2021). In addition, this category has maintained a relatively stable growth trend in the past five years. Specifically, the compound annual growth rate of household coffee makers will reach 12% in 2018-2021. If the compound growth rate is maintained, it is estimated that the market size of household coffee makers will be nearly 4 billion yuan by 2025.

Coffee machine is the category of household appliances that Boxi Home Appliances is focusing on in the Chinese market. "The relevant person in charge of Boxi Home Appliances told CNAppliances that thanks to its excellent innovation ability in emerging categories, strong brand strength and innovative marketing strategies, the sales of Siemens coffee machine under Boxi Home Appliances was in the forefront during the Double 11 this year. Speaking of the reasons that contributed to its growth and even to the growth of the whole household coffee machine market, the person in charge summarized four factors to the reporter: 1. The market side catalysis, the Chinese coffee market is gradually changing from a market dominated by instant coffee in recent years, and the proportion of freshly ground coffee and espresso is increasing. However, because the average price of a single cup of freshly ground coffee is more than 20 yuan, for consumers who need coffee drinks for a long time, The coffee machine is the best way to save costs and meet the demand for coffee. 2. With the change of the general environment, people's consumption, life and work rhythm have changed, and coffee takeout, home office, flexible office and other situations have made the home coffee machine popular with more consumers, which can not only meet the drinking needs of office workers simply and quickly, but also create the atmosphere needed for work.

3. With the upgrading of consumers' demand for quality of life and the formation of refined life concept, their attitude towards coffee has gradually enriched from the initial demand for refreshing and tasting to the demand for social interaction and taste. The continuous expansion of the coffee market also means that coffee is no longer a niche commodity, but a consumer demand of a wider population. 4. The evolution of home decoration. In recent years, people have higher pursuit of home decoration in terms of function, aesthetics, trend, etc. High quality small household appliances, mainly coffee machines and water purifiers, have become a necessity in the kitchen, constantly meeting the advanced needs of Chinese consumers for quality of life. Based on these four factors, the person in charge predicted that the potential development space of the domestic household coffee machine market would be huge in the future.

"Unlike the growth driven by the demand for renewal of the stock in most domestic home appliance markets, the growth of the coffee machine market is mostly new purchases", Ha Xiaolei, senior research manager of GfK Zhongyikang Life Appliances, pointed out to the reporter of China Home Appliance Network that he believed that the growth of the household coffee machine market was driven by three factors: 1. The increase in the coverage of on-site coffee shops The reduction of customer price and the convenience of purchase have gradually cultivated consumers' interest and dependence on coffee, which has paved the way for them to purchase coffee machines and directly participate in the production of coffee; 2. The prevalence of home economy after the epidemic, the normalization of home office or flexible office gradually, and the inconvenience of takeout, logistics, etc., promote the entry of western small appliances such as coffee machines, cooking machines, etc. 3. The promotion of the head brand of the coffee machine has improved the public's awareness of coffee related culture. Such as the placement of landmark advertisements in the core cities of coffee machine brands such as Delong, Nespresso and Siemens, celebrity spokesperson activities, VIP experience of offline stores and other activities.

The market explosion needs to be cultivated

On the one hand, the industry and enterprises are optimistic. On the other hand, from the perspective of penetration rate, the average domestic coffee machine is less than 3 sets/100 households, far lower than the level of 90 sets/100 households in Europe and the United States, which undoubtedly means that the domestic domestic coffee machine market has a large growth space in the future. However, with reference to the growth track of similar small household appliances, such as Chinese small electric soymilk machine, western small electric wall breaking cooking machine, etc., their market development has witnessed an explosive growth period of more than 50% or even 100% year-on-year growth for two or three consecutive years, and then entered a relatively stable mature period. In comparison, although the household coffee machine has maintained a relatively stable growth trend, it seems that it is not ready for the market explosion.

"At present, the products at all price levels can basically meet the needs of consumers for coffee, but from the perspective of quality upgrading and product experience, many coffee machine products on the market can not fully meet consumers' more professional and refined consumption needs", a small appliance related industry personage analyzed and said to the reporter. Taking the product pressure value as an example, compared with the rotary pressure pump used in commercial professional coffee machine, it can achieve the ideal pressure value (about 9-12 bar) instantly, and ensure stable pressure and low noise. Most domestic coffee makers use vibrating pressure pumps. Generally speaking, the pressure is 15bar or 19bar, or even 20bar. In fact, it refers to the peak pressure of the vibrating pump under ideal conditions. The final pressure control is the pump pressure and the outflow resistance of the extracted water, whichever is smaller. "For example, for many products with a marked pressure of 15bar, 15bar may only last for one or two seconds, leaving 3-5 bar in the whole process, so the extraction efficiency will be reduced, while insufficient extraction will lead to low alcohol thickness of coffee, strong acidity, and affect the taste". In addition, from the perspective of consumption habits, compared with tea culture, China's coffee culture is insufficient, especially the coffee culture in low-end cities has not been cultivated, which hinders the popularization and even further explosive growth of the household coffee machine market.

In fact, compared with the early years, the coffee machine market has a common problem similar to other traditional small household appliances - serious homogenization of products and lack of vitality in the market. Ha Xiaolei believes that the current household coffee machine market product upgrade is obvious, which is reflected in three aspects: the proportion of Italian coffee machine gradually increases, the penetration rate of bean grinding function increases, and the intelligent proportion of automatic coffee machine increases. However, he also mentioned that, in addition to the product itself, from the perspective of user experience, especially new users, the adjustment of temperature, pressure and flow rate of the coffee machine, as well as the intelligent design of the product, and even the daily cleaning and maintenance of the product, there are still some consumption pain points, which are also areas that enterprises need to pay attention to and improve when making product innovation.

On the one hand, there is an incremental market waiting to be cultivated and erupted; on the other hand, with the increase of entrants, brand competition has become increasingly fiercely. The reporter inquired about the data of enterprises and found that in the past five years, there were 2788 new enterprises whose names or business scope included "coffee machines". From the perspective of brand concentration, according to GfK Zhongyikang data, the brand concentration of coffee machine has been more than 60% in the past six months, which has decreased compared with 76% in 2020, and the brand competition has intensified. Moreover, according to the reporter's observation, the current domestic mainstream coffee machine brands include Delong, Nespresso, Philips, SMEG, Huijia, Petri, Yum!!, Siemens Home Appliances, Bofu, Gemilai, etc. Among them, except for the head share advantage of Delong and other brands, the market share of a large number of other brands is not different, which also makes the brand market competition more intense.





Then, in the face of the current fierce market competition situation, what direction should the enterprise make efforts to achieve further growth in scale and share? The relevant person in charge of Bosi Home Appliances believes that, in addition to focusing on the quality of the coffee machine, household coffee machine enterprises also need to pay attention to the appearance design of the coffee machine and whether it can be integrated into the home decoration environment when making product innovation; At the same time, due to the limited family space of most Chinese consumers, household appliance manufacturers should also consider reducing consumer costs, warranty, maintenance and other needs, and launch more integrated coffee machines, such as the coffee machine integrated with grinding beans and extraction. "For some consumers who know coffee and love coffee, the four major steps of grinding, water temperature, pressure and extraction are quite critical, which requires the coffee machine to have the characteristics of functional integration and intelligent operation", emphasized by the relevant person in charge of Bosi Home Appliances. On the premise of ensuring product quality, it is the key for enterprises to increase market share in the competitive environment of coffee machine market to grasp the product development trend and insight into consumer demand. At the same time, enterprises need to take personalization and intelligence as the main direction of product upgrading.

Semi-Automatic Bean To Cup Espresso Machine Coffee Maker With Grinder & Steam Wand

Ha Xiaolei also put forward suggestions for relevant household appliance enterprises located in the home coffee machine race track. If enterprises want to achieve further growth in the coffee machine market, first of all, product quality is the prerequisite for everything, and product innovation also needs to iterate products and innovate service experience from the real needs and pain points of users. Secondly, different enterprises should have clear ideas and clear orientation in their choice of coffee machine market segments. "At present, the brand construction of coffee machines in different market segments is very clear, such as the well-known brands Delong, Siemens, Philips, etc. in the fully automatic Italian coffee machine market, Nespresso, Duoqukusi, etc. in the capsule coffee machine market. Different brands need to clarify their market positioning, and retain their deep impression and unique position in the target population, which is very important for the brand competition in the coffee machine market. In addition In the expansion of the coffee machine market, the participating enterprises have the responsibility to cultivate more people to love the coffee machine and the coffee culture. With the continuous expansion of the domestic coffee machine market and the cultivation of consumers' coffee consumption habits, we believe that the coffee machine market has greater development space. "