China has overtaken the United States as the nation with the most coffee outlets, marking a significant shift from its traditional tea culture to becoming East Asia’s fastest-growing coffee market. The freshly brewed coffee sector in China reached approximately 162.35 billion yuan (22.76 billion U.S. dollars) in 2023 and is projected to exceed 193 billion yuan (27 billion dollars) by 2024, according to Statista.
Chinese consumers are increasingly discerning, seeking high-quality coffee with distinct origins. This demand has spurred innovations such as tea-infused and fruit-flavored coffee. Notable examples include the Oolong Latte and the social media sensation, Luckin Coffee’s “Sauce-flavored Latte,” which sold over 5.42 million cups on its launch day.
The coffee scene in China, which began with international brands like Starbucks in 1999, has expanded significantly. Coffee has become a staple for many, with rapid online delivery services making it even more accessible. Surveys show over 90 percent of coffee shop consumers drink hot coffee weekly, and 64 percent enjoy iced coffee regularly.
South Korean brands and other global players are eager to capture this growing market. Emily Chua of NKG Shanghai highlights the exciting prospects, noting the opportunity to cater to a rapidly evolving coffee culture. With coffee consumption in China quadrupling since 2010 and Shanghai leading globally in coffee shop numbers, the market offers substantial growth potential for international brands.