RLG’s Rapid Coffee Growth Hinges on Contracted Demand and Market Risks

Rapid Growth in a Dynamic Market

RooLife Group Ltd (ASX, RLG) has announced a significant milestone for its proprietary RLG Coffee brand, achieving over A$1 million in sales in China during November 2025. This achievement comes just three months after the brand's launch in late August, underscoring the rapid traction it has gained in one of the world’s fastest-growing coffee markets.

China’s coffee consumption has been growing at an impressive annual rate of around 21% since 2011, far outpacing the global average. This shift from a traditionally tea-centric culture to embracing coffee presents a lucrative opportunity for brands like RLG Coffee, which is positioning itself to capitalize on this expanding demand.

Multi-Channel Distribution Fuels Expansion

The brand’s sales momentum is supported by a multi-channel distribution strategy that includes flagship online storefronts such as JD.com, Tmall, and Douyin, alongside expanding offline presence in supermarkets, convenience stores, specialty retail, and foodservice outlets. This diversified approach not only broadens consumer reach but also provides a scalable platform for sustained growth.

RLG’s ability to rapidly scale its product range and distribution network reflects its data-driven, demand-led operating model. By leveraging market insights and an asset-light infrastructure, the company can swiftly introduce and optimize proprietary products without the burden of warehousing costs.

Backing Growth with a Major Supply Agreement

Adding further confidence to RLG Coffee’s prospects is a binding two-year supply and procurement agreement valued at approximately A$64 million with Zhongshan Runlian. This contract, announced in September 2025, guarantees a steady flow of demand through to September 2027, with early November sales reflecting the conversion of this contracted demand into actual orders.

Managing Director Bryan Carr highlighted that the coffee vertical is becoming a core pillar of RLG’s growth strategy, complementing its broader focus on food, beverage, and health and wellness sectors. The combination of strong market fundamentals and contractual backing positions RLG Coffee as a significant contributor to the company’s revenue and margin expansion ambitions.

Looking Ahead

While the initial sales figures and contract provide a promising outlook, the sustainability of this growth trajectory will depend on continued consumer adoption, competitive dynamics, and effective execution of marketing and distribution strategies. RLG’s data-driven approach and multi-channel presence offer a robust foundation, but the coming months will be critical in validating the brand’s long-term potential in China’s evolving coffee market.