China's growing market opens new doors for Ethiopia's coffee industry

At the China Kunshan International Fair for Coffee Industry 2025, an Ethiopian exhibitor (first from right) presents products to merchants. (Photo/Yuan Xinyu)

At a processing facility run by Ethiopia's AWO Coffee in Hawassa, coffee beans move through standardized production lines, where they are carefully sorted, processed, and stored before being shipped to overseas markets, including China.

"China, with its rapidly growing market, has become one of our most important export destinations," said Tesfaye Gebru, founder and general manager of AWO Coffee. "Sales to China have brought Ethiopia not only larger purchase orders but also the confidence to expand production, improve quality, and build long-term export channels."

Ethiopia is widely recognized as the birthplace of Arabica coffee, where favorable altitude, climate, and a long tradition of coffee cultivation create distinctive flavors. In recent years, Ethiopia's coffee exports to China have grown by an average of 27 percent annually, making China the country's third-largest export market for coffee.

In fiscal year 2025-2026, Ethiopia exported nearly 48,000 tons of coffee to China, valued at $347 million, with volumes and value rising by about 40 percent and 58 percent, respectively. Founded in 2014, AWO Coffee now exports around 90 percent of its roasted coffee products to China, with shipments to the Chinese market growing by roughly 10 percent annually.

"China's zero-tariff policy and other supportive measures have significantly enhanced the competitiveness of Ethiopian specialty coffee, encouraging more Chinese buyers to source directly from the country of origin," Gebru said.

He noted that the growing consumer demand generated by China's enormous market has provided African businesses, including AWO Coffee, with a practical pathway to turn distinctive local products into stable export businesses.

Exporting to China is about more than simply selling more products, he said. Through sustained demand and open trading platforms, it helps African small and medium-sized enterprises reduce market-entry barriers, strengthen their export capabilities, and turn local resource advantages into sustainable development gains.

In 2025, AWO Coffee made its debut at the China International Import Expo (CIIE), where it established connections with dozens of Chinese importers interested in long-term cooperation.

"The CIIE has helped us expand our brand presence, strengthen relationships with our Chinese trading partners, and gain a better understanding of the preferences of Chinese consumers," Gebru said.

Today, the company's 14-hectare coffee plantation is unable to fully meet demand from China. To increase supply, it has begun working with nearby farmers to expand coffee bean procurement.

Growing demand from Chinese consumers for a wider variety of roasted coffee products has also encouraged the company to move beyond exporting mainly green coffee beans to higher value-added products such as roasted and packaged coffee.

"China's commitment to high-standard opening up and the steady implementation of preferential trade policies for Africa have sent a strong signal of long-term cooperation, greatly boosting the confidence of African businesses," Gebru said.

He added that AWO Coffee will continue deepening cooperation with Chinese importers, expand exports of Ethiopian specialty coffee to China, and develop more value-added products, including ready-to-drink and portable coffee products.

"With China's continuously expanding market, inclusive and business-friendly trade policies, and diverse platforms for commercial cooperation, more high-quality African products will enter the Chinese market, and Africa and China will continue advancing together on the path of mutual benefit and win-win cooperation," he concluded.