China Surpasses the US in Branded Coffee Shops, Experiencing 58% Growth in the Past Year
A recent report by World Coffee Portal reveals that China has emerged as the leading market for branded coffee shops globally, surpassing the United States in the number of outlets.
Over the past 12 months, the second-largest economy witnessed a remarkable 58% growth in branded coffee shops, reaching a total of 49,691 outlets, according to the research firm.
Starbucks, a major player in the global coffee industry, contributed significantly to this growth by opening 785 new outlets in China during the mentioned period.
The country’s second-largest branded coffee operator by outlets is Starbucks, while Luckin Coffee, despite its past fraud scandal, claims the top spot with over 13,000 outlets.
World Coffee Portal’s statement on Tuesday highlighted the evolving coffee culture in China, revealing that more than 90% of the 4,000 surveyed Chinese coffee shop consumers indulge in hot coffee on a weekly basis.
Additionally, 64% of respondents consume iced coffee at least once a week. The survey noted that nearly 90% of consumers visit or order from a coffee shop at least once a week.
China’s ascent in the global coffee industry has been remarkable, with the country grappling with various economic challenges in recent years.
Despite this, Starbucks made a substantial investment of over $200 million in a new campus in eastern China earlier this year.
The move underscored China’s significance as a growth driver for Starbucks, ranking as the company’s second-largest market globally and the leading overseas market.
CEO Laxman Narasimhan emphasized that Starbucks is still in the early stages of its growth in China, acknowledging the nation’s historically tea-centric culture.
The company aims to expand its presence in China significantly, targeting 9,000 stores in the country by 2025, as outlined by World Coffee Portal.
The data indicates a shift in beverage preferences and a burgeoning coffee culture in a nation traditionally associated with tea consumption.
