Photo courtesy of Luckin Coffee

The 5th China International Consumer Products Expo (CICPE) kicked off on April 13 in Haikou, South China’s Hainan Province. As the “recommended coffee brand” of this year’s Hainan Expo, Luckin Coffee introduced its “Coffee+” ecosystem, focusing on product and industry innovation. The coffee economy it represents continues to inject steady momentum into China’s consumer market.

The inaugural CICPE took place in Hainan in 2021, when Luckin Coffee debuted its Coconut Latte at the same time. During the past four years, the drink has been sold over 1.2 billion cups, becoming a phenomenal coffee-based drink. It has not only boosted coffee consumption but also sparked a new wave of demand in the coconut industry.

During the expo this year, Luckin Coffee has been strongly recognized and supported by the Hainan provincial government and other relevant departments. Luckin Coffee has actively responded to the national call to boost consumption, closely aligning with consumer demand. Through product innovation, supply chain improvements and enriching consumer experiences, the company is accelerating the development of digital, green and smart consumption models.

The success of Coconut Latte has not only driven the brand’s business growth but also broadened the overall coffee consumer base in China. In 2024, the company’s average monthly transacting customers increased by 48 percent year-on-year to 71.8 million, with cumulative transacting customers surpassing 330 million, making coffee an increasingly important lifestyle choice for ordinary Chinese consumers.

At the same time, the brand continues to drive product innovation. In 2024, Luckin Coffee launched 119 new products, with nearly 3 billion cups of freshly brewed beverages sold throughout the year. While creating and driving demand, it has also expanded the coffee market.

On the supply side, the company continues to strengthen its global sourcing strategy, using premium ingredients such as Brazilian coffee beans and jasmine flowers from Hengzhou in Guangxi. It also sources coconuts from Luckin’s Exclusive Coconut Island in Indonesia, driving product quality upgrades.

Meanwhile, Luckin Coffee has increased investment in self-built supply chain bases, with two smart roasting plants now operating in Fujian and Jiangsu provinces. A green coffee bean processing plant in Baoshan, Yunnan Province has also started operations. In the third quarter of 2024, Luckin Coffee’s Innovation and Production Center broke ground in Qingdao, Shandong Province, aligning closely with local industry strengths to drive industrial upgrades together.

Through the lens of the CICPE, we can see the vigorous vitality and great potential of China's coffee economy. Luckin Coffee’s success is not only driven by its product innovation but also by its deep control of the supply chain. Its global sourcing efforts and self-operated factories ensure the high product quality and stable supply. This source-to-end control of the entire supply chain not only enhances its product quality but also delivers a superior experience for consumers.

With product innovation and supply chain optimization, Luckin Coffee delivers higher-quality products and services to consumers, continuously unlocking consumption potential. Behind each cup of coffee lies a powerful driver of consumption upgrades, the limitless potential of the “Coffee+” ecosystem, and a promising future for industrial collaboration. 

Looking ahead, with the sustained efforts of policies and continuous innovation by companies, the coffee economy is expected to play a more important role in China’s consumer market and contribute more to the country’s high-quality economic growth.