China’s coffee market is growing fast. In the past year, the country added nearly 12,000 new coffee shops. This growth is helping make coffee more popular and affordable for everyday people. The rise comes from lower prices, local innovations, and support from top government leaders.
Coffee culture grows across the country
According to food and beverage data provider Canyan.com, a total of 66,920 coffee shops opened in China over the past year. After subtracting store closures, the net increase was almost 12,000 new shops. This boom is changing how people in China view coffee. Once seen as a luxury item in big cities, coffee is now reaching smaller towns and average consumers.
More affordable and creative coffee options
The rising number of shops is making coffee cheaper. Local brands are competing with each other and with global companies by offering lower prices and new drink ideas. For example, some brands serve cheese-topped coffee or drinks made with sweet potatoes and taro.
This approach attracts younger people and those living in smaller cities. These creative drinks are different from the usual espresso or cappuccino found in Western chains.
Big brands face tough competition
Global coffee chains like Starbucks are facing slower growth in China. New local companies are offering cheaper coffee, faster service, and unique drinks. To stay competitive, Starbucks is trying new ideas like smaller stores, digital ordering, and working with local partners.
The company still has thousands of shops in China but now faces a different market than a few years ago. It must find new ways to attract customers who are choosing more local or creative options.
High-level support boosts coffee’s image
China’s President Xi Jinping recently gave public support to the coffee industry. This happened during a visit to Hainan province, where coffee is grown. His words helped make coffee more accepted across the country.
Many local governments are now encouraging coffee-related projects. Some cities are building coffee streets, holding coffee festivals, and offering business support to new coffee shops. These efforts help grow tourism and create local jobs.
Small cities join the coffee wave
Coffee is no longer just a trend in Beijing or Shanghai. Smaller cities are also joining the movement. Places like Chengdu, Kunming, and even Zibo are seeing new coffee shops open every week.
These cities have a growing middle class and young people who want to try new things. In some cities, coffee shops are becoming popular spots for studying, working, or socializing.
Young people drive demand
Most of China’s coffee drinkers are young. A report by iiMedia Research in 2024 said that 75 percent of drinkers are between 20 and 39 years old. These young people often share photos of their drinks on social media apps like Xiaohongshu and Douyin.
Coffee is more than a drink for them. It is part of their lifestyle. Many like trying limited-edition drinks or working from coffee shops instead of at home.
More money flows into the coffee market
Investors are putting big money into China’s coffee industry. In 2023, over 5 billion US dollars went into coffee-related businesses. This includes ready-to-drink coffee, vending machines, and online delivery services.
Large tech companies like Tencent and Alibaba are investing in digital coffee platforms. These systems use data and artificial intelligence to improve service and manage stock.
Focus on environment and sustainability
As the number of coffee shops grows, so does concern about waste. Many shops use plastic cups and lids, which creates more trash. To help the environment, some cafés now give discounts to customers who bring their own reusable cups.
Also, coffee farming in China is changing. In Yunnan province, more farmers are learning to grow coffee in eco-friendly ways. These changes help protect the land and produce better-quality beans.
