Yunnan's Coffee Industry Shifts Towards Premiumization – CoffeeTalk

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At the 9th China-South Asia Expo in Kunming, Southwest China’s Yunnan Province, Aamir Mustafa, a young entrepreneur from Pakistani coffee exporter Wagera Pvt Ltd, visited the expo to explore new coffee flavors and business opportunities. He was impressed by Yunnan’s unique taste and rich aroma, which he believes is the key to unlocking distinct opportunities in the coffee industry. Yunnan’s small-bean coffee accounts for over 98% of China’s total coffee cultivation area, output, and production value, making it the country’s undisputed coffee heartland.

An industry insider told the Global Times at the expo that Yunnan’s small-bean coffee accounts for over 98% of China’s total coffee cultivation area, output, and production value. However, with national annual consumption reaching around 400,000 tons and Yunnan producing only about 100,000 tons, the region has long faced a pressing question: how can this limited but distinctly “Chinese-flavored” resource be fully leveraged for market potential?

At the China-South Asia Expo, the refined taste of Yunnan coffee has truly won over many visitors. The transformation begins in the soil, with more than 90% of Yunnan’s coffee farms planted with Catimor, a high-yield, disease-resistant variety. Now, the company is actively introducing and testing premium varieties such as the DRC series, Yunkaxinhao, and Sarchimor, renowned for their richer flavor profiles and higher cupping scores, as part of a gradual shift away from the dominant cultivar.

Advanced processing is just as crucial, with every step of the deep processing chain playing a vital role. Through improved cultivation and enhanced processing techniques, Yunnan coffee is refining its limited resources into premium products, delivering greater value for farmers and a richer, more distinctive “Chinese flavor” for consumers.

Industry reports show that Yunnan’s four major coffee-producing regions are driving the shift toward premiumization. Pu’er has emerged as China’s largest coffee production and trading hub in terms of planting area, output, and quality, and is also a key sourcing region for global coffee giants such as Nestlé, Starbucks, and Luckin Coffee. As Chinese consumers place greater emphasis on coffee quality and diversity, Yunnan coffee has increasingly attracted the attention of major brands.

Driving Yunnan’s coffee upgrade are provincial targets to increase the share of premium beans and deep processing, as well as private companies’ relentless efforts to expand overseas, transforming Yunnan coffee from a behind-the-scenes raw material supplier into a visible player in global markets.

Yunnan coffee, once a relatively unknown international brand, has experienced significant growth in recent years. General manager Wang Yu’e, a veteran of the industry, has witnessed its transformation from relative obscurity to a rising presence in the international market. She has participated in numerous trade fairs and promotional events to raise awareness and help more global consumers discover and appreciate Yunnan coffee.

Liangmu Coffee has actively pursued overseas markets through field visits and participation in trade fairs in countries such as the UAE, Japan, South Korea, Vietnam, and Uganda. The company currently exports to markets such as Malaysia, Japan, South Korea, and Vietnam, where most clients express strong interest in Yunnan’s green coffee beans.

Yunnan’s coffee exports have surged in recent years due to rising global demand for high-quality coffee. In 2024, Yunnan exported 32,500 tons of coffee, marking a 358 percent year-on-year increase. In the first quarter of 2025, Yunnan’s exports of coffee and coffee products reached 310 million yuan, up 122.1 percent year-on-year.

With over 130 years of cultivation history, Yunnan coffee is gradually earning recognition for its quality and production capacity, paving the way for broader international access. At the expo, 93 coffee buyers from 12 countries visited the Baoshan coffee production area in the province, reaching 20 preliminary purchase agreements.

China’s coffee consumption market is expanding rapidly, and Yunnan coffee has responded by shifting its focus from quantity to quality. This progress reflects China’s effort to enhance the global value of its coffee brands by improving cultivation and processing to ensure consistent, premium quality.

Musafa, the general manager of Yunnan Liangmu Coffee Co, has stated that they will not mix Yunnan coffee with other countries due to its unique flavor and aroma.

Read More @ GT

Source: Coffee Talk

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