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Global and Chinese Caffeine Industry, 2009-2019

When consumed, caffeine acts like a stimulant for the central nervous system. It works as a performance enhancer, which usually keeps the body and mind active. With no major regulatory laws in place for caffeine consumption and selling, it is easily available throughout the world. Caffeine is a vital ingredient of tea, coffee, energy drinks, sports gels etc. Majority of the natural caffeine produced comes from tea and coffee.

Rise of the caffeine industry in China

China has always been considered as a tea drinking nation. Currently, it contributes around 2% to the global consumption of coffee, which is not very impressive. However, there is an evident change of trend in the region. Previously, the ability to consume coffee was considered as a luxury among the local population. However, as the economy is growing, the purchasing power of the people is increasing. China is potentially a humongous market for the coffee and caffeine industry. The Yunnan Coffee Association is looking forward to invest $480 million in the next ten years. This money will be used to improve the soil quality, build research centres, professional training for coffee growers with the goal of widening production as well as quality of coffee.

 

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American coffee chains, Starbucks and Dunkin Donuts have made their presence felt in China. Heavy investments have been made by these companies. Starbucks, for instance, currently boasts of having around 2000 active outlets in China alone. 500 more are to be added in the years to come. Meanwhile, Dunkin Donuts plans to add around 1400 shops in China in the next two decades. These figures only prove how the Chinese are slowly embracing the coffee culture. Increased exposure to the western culture can be considered as another possible reason for this growing coffee drinking population.

Places like Starbucks provide an environment where the youth can come and make use of the Wi-Fi for free and spend a good time with friends or colleagues while sipping a cup of coffee. Alibaba, the popular Chinese e-commerce platform offer a wide range of caffeine products. There are factories in China that make synthetic caffeine which gives an added impetus to the Caffeine Industry in China.

 

Global scenario of caffeine consumption

Coffee continues to be the most consumed hot drink in the world. Due to a surge of caffeine consumers globally, the caffeine industry is showing commendable growth. U.S. manufactures as well as possesses the highest number of caffeinated products in the world. Although the country has shown dominance as far as the possession of caffeine products is concerned it is not the highest consumer of the same. Sweden consumes the highest volume of caffeine per day with a staggering 388 mg per day. U.S consumes 363 cups of coffee per person annually. China, on the other hand, lags behind with consumption of 3 cups of coffee per person annually which puts it below Sudan and North Korea in the global ranks. Reports suggest that Brazil might overtake U.S as the country with the highest amount of coffee consumed per year. 59% of the U.S population consumed coffee on a daily basis in the year 2015.

 For manufacturing caffeine, the industry is heavily dependent on the developing countries although most of it is consumed by the developed nations. Huge factories in China contribute towards

 

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