Number one in the world! The number of coffee shops in China surpasses that of the United States.

Recently, World Coffee Portal, a research organization owned by Allegra Group, released the latest annual report on the coffee market in East Asia. China has overtaken the United States to become the country with the largest number of branded coffee shops in the world, according to the report.

There are about 120000 coffee shops in East Asia, with China accounting for more than 40%. As the largest and fastest-growing coffee retail market in East Asia, the total number of coffee shops in China has reached 49691 in the past year, an increase of 58% over the same period last year. In the United States, the market grew by only 4%, with 40062 branded coffee shops.

In the report, which covers 18 East Asian countries, the market research team collected more than 300 surveys and consultations with industry leaders, and more than 4000 consumer surveys, field data and desk studies conducted in Chinese and English. According to the report, up to 20% of the Chinese consumers surveyed go to coffee shops once a day, indicating their enthusiasm in promoting coffee consumption in China. Convenience-oriented small stores are common in the Chinese brand coffee market.

The growth in the number of coffee shops in China is mainly driven by chain brands: Luckin Coffee and Cotti Coffee, which have expanded rapidly over the past year, adding 5059 and 6004 stores respectively, with a combined net increase of more than 11000 new stores. Luckin Coffee, which is only six years old, has 13273 stores in China, making it the largest operator.

Starbucks opened its first store in China in 1999 and added 785 stores in the country in 2023, bringing the total to 6806. Currently, Starbucks is the largest coffee chain in East Asia, with more than 13500 stores in 15 countries.

In the past 12 months, six of the 10 largest coffee markets in East Asia have achieved double-digit store growth. Second only to China on the list of the fastest growing markets are Malaysia (up 28 per cent) and the Philippines (up 15.3 per cent).

With the maturity of the whole East Asian brand coffee shop market, more and more operators are looking for international growth opportunities. Coffee chains from Asia have become increasingly prominent. Local coffee chains such as Mega Coffee in South Korea, Tomoro Coffee in Indonesia and Zus Coffee in Malaysia are increasing their market share. Cotti coffee has entered South Korea, Indonesia and other countries, and Luckin, Kopi Kenangan and Compose Coffee have all opened international stores. The international expansion of these companies has shaken Starbucks' dominant position.

"led by the astonishing expansion of the number of coffee shops in China, it is clear that the East Asian market is experiencing rapid growth," Allegra Group CEO Jeffrey Young said in a statement. China has rapidly become a global coffee industry power.

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