Caffeine boost: China’s rising coffee demand spurs cutthroat cafe competition
- Coffee consumption in China grew 15 per cent in the latest season, according to data from the International Coffee Organization
- The number of branded coffee shops in China grew 58 per cent in the last 12 months to 49,691 outlets, according to Alegra Group, which tracks growth of coffee chains
Chinese coffee consumption is growing quickly, spurring cutthroat competition between local and foreign coffee chains that have opened thousands of branded shops in recent months and surpassed the number of coffee stores in the United States.
Analysts expect China’s growing thirst for coffee to be a key driver of future demand for the beans as coffee shops expand beyond Beijing and Shanghai to dozens of mid-sized cities where young professionals have warmed to the drink.
China’s rising coffee demand is an opportunity for international chains like Starbucks and Tim Hortons that are investing heavily in China, though they face a steep challenge from rapidly expanding local brands.
Data from the International Coffee Organization shows coffee consumption in China grew 15 per cent in the year-long season ended in September from the previous cycle to 3.08 million bags.
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“The Chinese consumer is increasingly adopting Western lifestyles and coffee is obviously one of the beverages that represent that,” said Jason Yu, managing director for Greater China at market research firm Kantar Worldpanel.
