China’s Specialty Coffee Shops Will Keep Growing

In major Chinese cities, coffee isn’t just a drink anymore—it’s a daily habit, a workspace, and a social hub. As more people seek quality over instant, the number of dedicated coffee shops has been steadily rising, especially in urban centers. But how fast is this growth really happening, and who’s driving it?

By the end of 2018, China is expected to have roughly 10,600 chain coffee shops, with an industry growth rate of 25%. This figure excludes the countless independent and creative cafes operating out of smaller urban spaces.

The Rapid Growth of China’s Coffee Shop Market

In recent years, the number of coffee shops in China has grown steadily, with increasing momentum. In 2012, the retail value of coffee shops in China reached 53.84 billion yuan, with chain coffee shops alone accounting for over 14.7 billion yuan. That same year, the coffee franchise sector was expanding at a robust rate of 25% annually.

International Brands Leading the Charge

Major global coffee chains have been aggressively expanding in China, especially in first-tier cities. Starbucks reported third-quarter net profits of $417.8 million in 2013, a 25.4% increase over 2012, with global same-store sales up 8%—and a notable 9% growth in China and the rest of the Asia-Pacific region. Meanwhile, COSTA Coffee, which entered China in 2007, expanded rapidly, growing from 101 to 200 stores within just one year, opening its 200th Chinese location in 2012.

Expanding Beyond Tier-One Cities

While international coffee giants initially focused on major urban markets, many are now setting their sights on second-tier cities as well. The push for market share is leading to rapid development not just in Beijing, Shanghai, and Guangzhou, but also in emerging urban centers across the country.

What’s Driving the Growth?

The consistent rise in coffee shop numbers reflects broader trends: increased urbanization, a growing middle class with disposable income, and a shifting coffee culture that values quality, space, and experience. While figures from 2012 show a retail market of over 53 billion yuan, the actual number of physical shops—especially independent ones—is believed to be much higher when including smaller, creative venues scattered throughout city neighborhoods.

Frequently Asked Questions

How many chain coffee shops were there in China by 2018?

By the end of 2018, China is projected to have approximately 10,600 chain coffee shops. This figure does not include independent or creative cafes that operate outside of formal chain structures, particularly in smaller urban locations.

What was the growth rate of China’s coffee franchise industry?

The coffee franchise industry in China was growing at a rate of 25% per year during the period leading up to 2018, indicating strong demand and rapid expansion across the sector.

Which international coffee brands expanded most in China during this time?

Starbucks and COSTA were among the fastest-growing international coffee brands in China. Starbucks saw significant profit and same-store sales growth, while COSTA expanded from 101 to 200 stores in just one year, opening its 200th location in 2012.

Are independent cafes included in the 10,600 shop estimate?

No, the 10,600 shop estimate refers only to chain coffee shops. The actual number of coffee shops in China, including independent and creative cafes in urban areas, is much higher and not fully captured in this projection.

Why are coffee shops expanding beyond major cities?

As competition in first-tier cities intensifies and consumer demand grows in smaller urban centers, many international and domestic coffee brands are targeting second-tier cities to capture new markets and establish a broader presence across China.

Recommended FrontStreet Beans for Coffee Shops

For cafés keeping pace with China’s coffee boom, FrontStreet Coffee’s Ethiopia Humbera offers bright citrus and floral tones ideal for filter-focused shops, while PWN Golden Mandheling delivers a classic full-bodied Indonesian profile great for espresso blends. Both beans highlight the diversity now driving China’s specialty scene. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.