From capsule culture to commercial equipment, this year's event pointed to a market still forming and a window for European brands that move early and localise well.

Hotelex is one of China's largest annual hospitality trade exhibitions, taking place in Shanghai and bringing together buyers, operators and suppliers across food, beverage and hotel equipment. At this year's event, coffee capsule systems, professional equipment and European origin brands all featured prominently across the show floor. The event also reflected a broader shift in China's hospitality, restaurant and café (horeca) sector, where convenience-driven formats are gaining ground in hotels, restaurants, offices and event venues, and commercial operators are increasingly looking to elevate their offer.

Chance Liu, Navigator Global's in-market specialist for China, attended Hotelex 2026 and spoke with overseas SMEs already operating in China's hospitality sector to get an insight into the market’s direction of travel and the lessons they’ve learned along the way.
Brand origin matters

Italian heritage carries genuine weight when it comes to coffee in China's horeca sector. An Italian capsule producer present at the show was clear on this. Being European brings a value-added tag that Asian competitors have found difficult to replicate. Chinese and other Asian brands producing what they describe as "eastern coffee" have struggled to resonate with consumers since "it has no cultural root”. Coffee history, technique and tradition remain deeply associated with Europe, and that association has real commercial value in a market where the category is still developing.
A separate Italian coffee equipment manufacturer draws a useful distinction on what that European value actually means in practice. "Being a European brand brings more aesthetic and design value to its consumers," their China marketing manager explains. The brand's guiding concept is that their machine should be machinery when used but a piece of furniture when not. That positioning, communicated through social media and flagship stores on major Chinese e-commerce platforms like Taobao and Jingdong, has driven a rapid increase in brand awareness in recent years. The company is also preparing to launch on Rednote, reflecting where younger Chinese consumers are increasingly discovering brands.

Where the real demand is

Both companies described the commercial sector as the most immediate opportunity. Hotels, restaurants, offices and event venues are where pod-based coffee makes the most practical sense, the Italian capsule producer explains, given the low operational barrier and consistency the format delivers. His company offers tea, chocolate and decaffeinated capsules alongside coffee, broadening the proposition for commercial operators.
The coffee equipment manufacturer offers three grades of machine to address different use cases: domestic, medium dimension for business environments, and professional for use in the horeca sector. The professional grade is capable of storing fresh milk and producing a range of drinks from a standard capsule, making it well suited to higher-volume commercial settings. A national subsidy programme covering home appliances and electronics, known as guobu, has also shifted the consumer picture, with business-to-consumer sales taking up a growing share of the equipment manufacturer's revenue.

The nascent market advantage

China's capsule coffee market is still relatively small. The Italian capsule brand is candid about this, but they are also optimistic. Establishing service infrastructure and brand awareness early in a nascent market is vital, they emphasise. The companies that build presence now will be better placed when the demand curve moves.

For new entrants in the equipment space, the traditional route of finding an agent and assessing agent performance over a prolonged period before going independent is no longer the recommended path. Finding a suitable original equipment manufacturing (OEM) partner or acquiring a local brand to accelerate localisation is more effective, the equipment manufacturer suggests, provided companies maintain majority equity to control brand expression and strategic direction.

A German cooling and cup-warming equipment company with over a decade of operational history in China adds that price competition from domestic players is fierce and European brand appeal in equipment categories is not what it once was. Their advice is to attend trade shows in China as a first step to build connections and find the right partners.
On the commercial side, their experience points to a different priority altogether: "Find the right customer, then the right salesperson."

The inside take: What SMEs can learn from Hotelex 2026

The conversations at Hotelex point to several clear priorities for European hot drink and equipment brands considering China's horeca market:

Lead with origin and brand concept
•    European and Italian heritage a real differentiator in coffee.
•    Design and aesthetic as important as functionality.
•    Platform visibility essential for building early awareness.

Target commercial use cases first
•    Hotels, offices, restaurants and venues the clearest near-term opportunity.
•    Commercial-grade equipment with flexibility best positioned for growth.

Localise deliberately, protect your brand
•    OEM partnerships or local brand acquisition over the agent route.
•    Majority equity retention non-negotiable for strategic control.
•    Geopolitical risk is real: enter cautiously and plan long term.

Build presence before the market matures
•    Service infrastructure and brand awareness built early will compound.
•    Trade shows the right first step for finding the right partners.