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China: Coffee makers percolate a sales boom in China

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Storyline: Coffee makers percolate a sales boom in China [Voice_over] Sales of China's domestic coffee makers have surged significantly this year, fueled by government subsidies for home appliances, and a steady drip of coffee culture into daily life. In Foshan city, a coffee-machine manufacturing hub in Guangdong Province, young people are flocking to cafes not just for beverages, but also for skills—to learn the delicate art of latte design. China's embrace of all things coffee is translating into retail growth. As part of a larger plan to stimulate consumption in the country, many regions offer residents subsidies to trade-in old small appliances. Coffee machines are amongst those eligible for the subsidies, which have put more of them in people's homes than ever before. [Sound_bite] Kuang Jiaxian, consumer: "We've just moved into our new home. Therefore, we've bought a coffee maker on an e-commerce platform, priced at about 365 U.S. dollars a piece. The 15 percent state subsidy plus the store's own discount saved us nearly 140 U.S. dollars in total." [Voice_over] China's home coffee maker market is poised for continued expansion. From January to August, China's domestic coffee machine sales topped 1.6 million units, a striking 75 percent increase compared to the same period last year. [Sound_bite] Zhang Chunlai, deputy general manager, Foshan-based coffee maker manufacturer: "Since January, our domestic sales revenue has gone up by at least 50 percent. Three years ago, we mainly were living on exports. Now the home market accounts for 60 to 70 percent of our total sales." [Voice_over] Data shows that the value of China's coffee-machine market is forecast to reach 1.4 billion U.S. dollars by 2029, with an annual compound growth rate of about 28 percent. [Restrictions: No access Chinese mainland]

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