Domestic Brands Like Louising Stir Up a Storm
China Surpasses the US for the First Time in 20 Years
China has surpassed the United States to become the country with the most coffee shops in the world.
On the 12th (local time), the British daily The Guardian reported that as coffee shops have sprung up rapidly in China, the number has exceeded that of the United States for the first time in 20 years.
On October 6 last year, citizens visiting the '2022 Cafe and Bakery Fair' held at KINTEX in Goyang, Gyeonggi Province, are tasting coffee. Goyang - Photo by Kim Hyun-min kimhyun81@
According to the report, the UK market research firm World Coffee Portal stated in its November report that the number of coffee shops in China increased by 58% over the past year, totaling 49,691, while in the United States, coffee shops increased by only 4%, remaining at 40,062 in total.
This means China has overtaken the United States to become the country with the most coffee shops in the world, a first in the 20 years since the survey began.
Regarding this, The Guardian said, "The first Starbucks store, which opened in 1971 at Seattle's Pike Place Market, sparked a brand coffee chain craze, but China has now established itself as the country with the most branded coffee outlets, surpassing the United States."
China's coffee craze is led by domestic brands.
Luckin Coffee, known as the "Chinese Starbucks," opened its first store in 2017 and added 5,059 stores in one year, becoming the top company with 13,273 stores in just six years since its establishment. Cotti Coffee, a brand founded in 2022 by former Luckin executives, added 6,004 stores, bringing its total to 6,061.
A representative from World Coffee Portal said, "China has risen to become the heart of the global coffee industry," adding, "The East Asian coffee shop market is showing steep growth due to China's remarkable store expansion."
Starbucks Leads in East Asia Overall... Domestic Brands Growing in Each Country
Starbucks remains the leader in the total number of stores across East Asia. Starbucks added 1,223 stores in 15 countries, holding a total of 13,524 stores.
However, according to the report, domestic brands in major East Asian countries such as Mega Coffee in Korea, Tomoro Coffee in Indonesia, and Zus Coffee in Malaysia are increasing their market share and challenging Starbucks' dominance.
A World Coffee Portal representative said, "As the East Asian coffee shop market enters maturity, rapidly growing companies are increasingly seeking opportunities to expand overseas." They added, "Cotti Coffee has expanded into Korea, Indonesia, Japan, and Hong Kong, and Luckin Coffee has also successfully entered overseas markets in the past year."
Meanwhile, China's coffee market size is growing rapidly. According to iiMedia Research, China's coffee market size grew 27% from 381.7 billion yuan in 2021 to 485.6 billion yuan last year. Furthermore, it is expected to continue growing at an annual rate of around 40%, reaching a 1 trillion yuan market by 2025. This growth rate is 20 times the global coffee market's average growth rate of 2%.
According to global consulting firm Deloitte, the annual per capita coffee consumption in major Chinese cities such as Shanghai and Beijing was 326 cups in 2021, approaching levels in the United States and Korea. However, nationwide, the annual per capita coffee consumption in China is only 9 cups, indicating significant growth potential.
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