In a remarkable shift, China has taken the lead over the United States as the global epicenter for branded coffee shops, boasting a staggering 58% increase in the past year alone. According to research by World Coffee Portal, China now hosts a record-breaking 49,691 branded coffee outlets, surpassing the US count of 40,062 by over 9,000.
This surge signifies a monumental transformation in the coffee culture landscape, as the US had maintained its status as the world’s coffee shop leader for the past two decades. The rapid growth in China’s coffee market is attributed to local chains, with Luckin Coffee and Cotti Coffee expanding their presence by 5,059 and 6,004 stores, respectively, over the last year.
Jeffrey Young, CEO of World Coffee Portal, remarked, “The east Asian coffee shop market is clearly experiencing rapid growth led by phenomenal outlet expansion in China, which has fast become a global coffee industry powerhouse.”
Luckin Coffee, a six-year-old company, has quickly emerged as the largest operator in China with an impressive 13,273 stores. Despite being the fastest-growing market for Starbucks, the global coffee giant faces stiff competition from Cotti Coffee, founded in 2022 by former Luckin executives, which has already reached 6,061 stores.
Starbucks, although retaining its position as the largest branded coffee chain in east Asia, has witnessed domestic operators challenging its dominance. Companies like South Korea’s Mega Coffee, Indonesia’s Tomoro Coffee, and Malaysia’s Zus Coffee are expanding their market share and providing formidable competition.
As the east Asian branded coffee shop market matures, operators are increasingly seeking international growth opportunities. Cotti Coffee has entered markets in South Korea, Indonesia, Japan, and Hong Kong since its inception in China in 2022. Other players like Luckin Coffee, Kopi Kenangan, and Compose Coffee have also ventured into international markets in the last 12 months, signifying a broader global impact of China’s burgeoning coffee culture.
