Coffee consumption is increasing in China.

The National Retail Federation reports that the China Coffee Association Beijing study found coffee consumption in the world’s second largest economy is growing 15 per cent a year – seven times than the world average.

China is tea-drinking nation, however the rising number of middle class who are willing to spend is fuelling growth in the coffee industry.

Instant coffee still dominates the industry, accounting 80 per cent of the total consumption.

But global coffee chains are flocking to the market to target higher-income individuals. Having entered the country in 1999, Starbucks has grown its network to 1100 outlets currently, expecting to reach 1500 by 2015.

Fast food chain McDonald’s, with more than 1400 outlets, has included McCafés in its 800 locations there.

Taiwanese cafe chain 85 Degrees is also banking on the trend, planning 100 new outlets by 2017, in addition to its existing 400.