Beijing-based Luckin Coffee has committed to purchasing four million 60kg bags of coffee from Brazil between 2025 and 2029, marking its second major supply agreement with the world’s top coffee producer in just six months.
The deal further solidifies the partnership between Luckin Coffee and the Brazilian Trade and Investment Promotion Agency (ApexBrasil), highlighting the growing importance of the Chinese market for Brazilian coffee exports.
China’s Rising Demand for Brazilian Coffee
China’s branded coffee market has experienced rapid expansion since the pandemic, fueling record growth in Brazilian coffee exports. In 2023, Brazil exported over 1.3 million 60kg bags of green coffee to China, according to Brazil’s Ministry of Development, Industry, Trade and Services. The exports, valued at $280 million, propelled China to become the sixth-largest market for Brazilian coffee globally.
Márcio Ferreira, President of the Brazilian Coffee Exporters Council (Cecafé), emphasized the significance of the new agreement, stating, “The purchase intent agreement by Luckin Coffee of 240,000 tons (four million bags) demonstrates the expansion of the Chinese market for Brazilian coffees.”
A Deal of Expanding Scope
While the financial terms of the latest deal remain undisclosed, it follows Luckin Coffee’s earlier agreement to purchase 120,000 tons of Brazilian coffee for $500 million—approximately half the volume of the new arrangement.
Notably, the new deal includes robusta coffee, in addition to arabica. Robusta has seen rising demand due to a 10% production decline in Vietnam, the world’s largest robusta producer, attributed to extreme weather conditions such as high temperatures and severe droughts.
Brazil has capitalized on this shift, exporting seven million 60kg bags of robusta coffee in the first nine months of 2024—a 170% increase compared to the same period in 2023.
“The Chinese were buying coffee from Vietnam, which started having problems with the climate,” noted ApexBrasil President Jorge Viana. “For Brazil, which produces a third of the world’s coffee, to enter China opens up a huge horizon and very good prospects for coffee producers.”
Part of Broader Bilateral Cooperation
The coffee supply deal was formalized during Chinese President Xi Jinping’s visit to Brazil for the G20 summit. The summit saw Brazil and China sign 37 agreements spanning trade, agriculture, science and technology, health, energy, education, culture, and tourism, underscoring the deepening ties between the two nations.
This latest agreement reflects both the growing appetite for premium coffee in China and Brazil’s strategic positioning as a reliable supplier amidst global shifts in coffee production.