Foreign Direct Investment in the Coffee Industry: a strategic analysis of China as a promising market

In recent years, we have seen a remarkable growth in the flow of investments to emerging countries, making them highly attractive destinations for foreign capital. Due to the saturation of certain economic sectors in Western markets, combined with the rising incomes and living standards of the middle classes in emerging economies, many international companies are indeed turning their attention to these rapidly changing markets for their future growth plans. Among emerging countries, China is an eloquent example of this paradigm shift. Over the past few decades, thanks to a historically unique economic reform policy, China has rapidly moved from being one of the poorest and most isolated countries in the world to becoming a major player in the global economic landscape, establishing itself as an economic superpower and ranking as the world's second largest recipient of foreign direct investment (FDI). However, the investment strategy in China has changed considerably over the years. Whereas the country was initially targeted for the low-cost resources it could offer, the limited growth potential of already saturated markets has led investors to target previously neglected sectors, thus opening up to new business opportunities. This is the case in the flourishing Chinese coffee market. This thesis aims to act as a starting point for a more systematic investigation of how different industries are developing in emerging markets, focusing in particular on the Chinese coffee market. It will examine its growth dynamics, the challenges, and opportunities it presents for international companies, and provide a comprehensive picture of the economic, social, and cultural factors that may influence its growth. Through a regression analysis, the study will then assess whether the factors driving global FDI in the coffee sector are also echoed in the diversified Chinese context.