China’s Cafe Count Doubled in Five Years

While specialty coffee culture grows globally, China has quietly become a major player—without most people noticing. Over just five years, the number of coffee shops in the country more than doubled, reflecting a dramatic shift in urban consumption habits. Yet traditional tea houses remained stagnant, highlighting a cultural and commercial gap that’s hard to ignore.

From 2007 to 2012, the number of coffee shops in China surged from 15,898 to 31,783—a 100% increase—while tea houses grew a mere 4%, from 48,842 to 50,984. No tea house brand matched the reach of Starbucks.

Coffee Chains Fueled the Boom

Starbucks opened its first China store in Beijing’s Guomao in 1999 and rapidly expanded, aiming to have 1,500 outlets by 2015. The brand reported average annual sales growth of over 20% and profit growth of 30% since its 1992 IPO. Other domestic chains like UBC Coffee and DIO Coffee also thrived. This surge wasn’t limited to international players—the entire coffee retail sector expanded aggressively across Tier 1, 2, and 3 cities.

Consumer Habits Tell the Story

Surveys showed that 12% of urban Chinese consumers visited a coffee shop at least once in the past year, 25% went twice or more, and 24% went three times or more. A fifth (20%) visited five or more times. Meanwhile, just 20% had been to a tea house, and 5% had never bought anything at any cafe. Coffee was clearly winning.

What Are People Drinking?

When they go to cafes, 69% of consumers choose coffee, followed by juice (39%), iced coffee (35%), tea-based drinks (23%), and chocolate beverages (19%). Tea might be culturally rooted, but in public cafes, coffee dominates. Only 20% of urban consumers said they’d ever visited a tea house, although 70% still reported drinking tea at home.

Why Tea Houses Struggle

Tea houses suffer from a lack of strong branding, narrow market focus (often limited to older, affluent consumers), and an absence of innovation. In contrast, coffee chains offer not just coffee but also tea drinks, attracting younger, price-sensitive customers. The few existing tea chains target elite demographics, missing opportunities to engage the broader market. Even the ambiance and hygiene of coffee shops outperform what most tea houses currently offer.

What Consumers Really Want

Survey data revealed that food quality mattered most to 28% of consumers, followed by beverage quality (22%). But atmosphere (15%) and cleanliness (8%) were also key factors—more influential than price (7%) or brand name (7%). People don’t just want drinks; they want an experience.

Frequently Asked Questions

How many coffee shops were there in China in 2007?

In 2007, there were 15,898 coffee shops in China. This number doubled by 2012, reaching 31,783 outlets.

How did tea house numbers change during the same period?

Tea houses increased from 48,842 in 2007 to just 50,984 in 2012—an increase of only 4%, showing minimal growth compared to coffee shops.

What was the most popular drink in Chinese cafes?

Coffee was the most popular drink, chosen by 69% of consumers. Juice came next at 39%, followed by iced coffee (35%), tea drinks (23%), and chocolate beverages (19%).

Why haven’t tea houses kept up with coffee shops?

Tea houses lack strong brand identities, focus narrowly on older or luxury markets, and often fail to innovate. Coffee chains, meanwhile, offer diverse drinks, better environments, and appeal to younger demographics.

What factors matter most to cafe consumers in China?

Food quality (28%) and beverage quality (22%) ranked highest, but atmosphere (15%) and cleanliness (8%) also influenced decisions more than price (7%) or brand (7%).

Recommended FrontStreet Beans for Cafes

For a café inspired by China’s growing coffee culture, try FrontStreet Coffee’s Ethiopia Guji Humbera – bright with jasmine and citrus, perfect for pour-over. Pair it with Yirgacheffe, offering floral and lemony notes ideal for espresso or milk drinks. For deeper flavour, their PWN Golden Mandheling brings sweet caramel and nuttiness, great for classic espresso blends. All three showcase the specialty range that helped drive China’s cafe boom. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.