China’s Coffee Supply Chain Revolution: How High Raw Material Costs Are Driving a New Industrial Era
Since 2025, the international coffee market has continued to operate at historically high levels. In 2024, Arabica coffee futures repeatedly broke record highs, and the resulting price volatility rippled through the entire supply chain. Domestic small and medium-sized roasters faced increasing cost pressure, while several retail brands began adjusting prices in the end market. Against this backdrop, the light-asset model that relies solely on external procurement has become increasingly unsustainable. For leading Chinese coffee brands, early investments in vertically integrated supply chains have proven essential—“building factories and securing the source” has become the core defense against market fluctuations. 01. Leading Brands Double Down on Deep Supply Chain Integration Luckin Coffee began its “new coffee infrastructure” initiative in 2021 and has since completed a comprehensive network: a coffee cherry processing plant in Baoshan, Yunnan, and two major roasting bases in ...