A barista prepares coffee at a café in Yuzhong District, southwest China’s Chongqing Municipality. (Photo/Yin Shiyu)

Chongqing - Better known for hotpot than coffee, Chongqing is adding a new flavor to its export story as Yegu Coffee sends the city’s first commercial shipment of locally roasted beans to Hong Kong.

The shipment moves Chongqing beyond coffee distribution and consumption, completing a new supply chain that brings overseas beans to the city for roasting and direct export.

Chongqing’s coffee scene has exploded from fewer than 80 shops in 2015 to more than 3,800 in 2025, placing it among China’s top 10 coffee cities. Yuzhong District alone has over 700, nearly one in five of the city’s total.

The boom is becoming serious business. Yuzhong’s coffee and tea beverage industry is now worth more than 3 billion yuan (approx. 444.56 million U.S. dollars) and growing by over 20% annually, association president Tan Hua said. Luckin Coffee and Chayan Yuese have also based their southwest regional headquarters there.

The growth of Chongqing’s coffee market is closely linked to the city’s tourism boom and distinctive urban spaces. Riverbanks, cliffs, rooftops, backstreets and caves provide varied settings for coffee shops.

For young consumers, the coffee is only part of what they buy. They also want atmosphere, experience and emotional connection, said Chen Lu, head of Yegu Coffee. Tourism is fueling that demand, while chains now hold over 31% of Chongqing’s market, far above the national average of 18%.

Beyond consumption, Chongqing’s logistics network and manufacturing base support its expansion into the middle of the coffee supply chain. Coffee growing and primary processing account for only 5 to 10% of the final retail price, while more value is generated through roasting, supply chain services and equipment manufacturing.

Supported by the New International Land-Sea Trade Corridor and the China-Europe Railway Express, imported green coffee beans can reach Chongqing in as little as 15 days, much faster than traditional sea freight. Shorter transport times reduce capital costs, storage pressure and product losses.

Green coffee beans imported through Chongqing ports now account for about 10 percent of China’s total imports, making the city an important coffee distribution hub in southwest China.

Chongqing’s strengths in precision manufacturing and automation also support the development of roasting equipment and intelligent processing lines.

Tan said converting the city’s manufacturing capacity into technology and equipment for the coffee supply chain is a key advantage for Chongqing.

A coffee roasting project operated by Toscana (Chongqing) Supply Chain Co., Ltd. in Chongqing Yongchuan is now in stable production. It produces single-origin beans, blends, and drip-bag coffee, with an annual output value exceeding 20 million yuan. The project has strengthened Chongqing’s large-scale coffee processing capacity.

Brand development, however, remains a major challenge. Du Pan, General Manager of Toscana (Chongqing) Supply Chain Co., Ltd., said Chongqing needs nationally recognized roasted coffee bean brands and coffee shop chains to strengthen the pricing power and market reach of local companies.

Local brands such as Tushanshi Coffee and Balang Woods Coffee have won awards in domestic and international competitions, but most still operate as individual stores with limited market influence. Further expansion will require support from government platforms, commercial districts and investors.

Chongqing has already taken action. Yuzhong District has held the Chongqing International Coffee Festival for 11 consecutive years. The event has gradually evolved into an influential city coffee brand, providing local businesses with a platform to reach wider markets.