China’s Coffee Shop Boom: Demand or Bubble?

In Beijing’s Wangjing district, just three years ago, there was only one coffeehouse—Manner Coffee. Today, that same neighborhood boasts over a dozen cafés, ranging from global chains to hyper-local indie shops. All across China, new cafés are opening at astonishing speed. But is this surge the result of years of pent-up demand finally being met—or an unsustainable market bubble waiting to pop?

Yes, it’s real demand—but also rapid expansion. Since 1999, when Starbucks entered China, the country has built up a base of coffee drinkers. Now, with 13,600 cafés nationwide (growing daily, especially in cities like Beijing at 18% year-on-year), the market is both maturing and expanding fast.

A Flood of New Cafés—and Big Plans

Maan Coffee founder Shin Ja-sang is personally overseeing 20 new stores under construction and planning another 60 already contracted. Since opening its first location in Beijing’s Wangjing in 2019, Maan Coffee has expanded to 26 locations across Chengdu, Hangzhou, Shanghai, Wuhan, Taiyuan, Fuzhou, and Zhengzhou—with 14 alone in Beijing. “In 10 years, we want 3,000 stores,” says the South Korean entrepreneur, cigar in hand.

Major players are scaling up too. Starbucks (via China retail data provider Winshang) plans to hit 1,500 stores by 2015—double its then-current count. Costa, China’s fastest-growing international chain, aims for 250 new cafés in three years. Pacific Coffee, backed by China Resources, opened its 100th store in Beijing’s Silk Market earlier this year.

Niche and Independent Players Emerge

Beyond the chains, specialized cafés are thriving. Spaces like Garage Café, 3W Coffee, and Beta Café cater to the tech crowd. Others, like Beijing’s Fish Eye Café and Shanghai’s Quali Café, focus on specialty coffee. Delivery-focused services like Cani Coffee and Luckin Coffee serve remote coffee drinkers. Even an unlikely player—shirt retailer Kedney Shirt—now sells coffee.

These new models reflect evolving consumer tastes and uses for coffee spaces. They also highlight the diversity beyond the traditional café format.

The Long Road to Coffee Culture

Fifteen years ago, Beijing had almost no real coffee scene. In 1997, Zhuang Songlie opened Sculpting in Time, Beijing’s first café serving freshly ground coffee. He admits he didn’t know much about making coffee—often relying on foreign customers for guidance. That same year, Taiwan-based UBC Coffee entered Hainan with a franchise model and eventually grew to 1,300 stores nationwide, though it behaved more like a restaurant than a café.

Before Starbucks arrived in 1999, the average Chinese person had little exposure to coffee culture. Employees like “Da Mao” from Fish Eye Café recall buying coffee powder in tins (priced at ¥100–200) and expensive imported coffee makers. Socializing happened in tea houses or bars—not cafés.

Starbucks changed that. As Howard Schultz wrote in Pour Your Heart Into It, Starbucks wasn’t just about coffee—it was about selling an experience. The brand cultivated a “romantic” atmosphere with jazz, art photos, and comfy seating. In China, that translated into an aspirational, “bourgeois” label that attracted young consumers.

Despite changing markets, early players like Sculpting in Time, UBC Coffee, and Starbucks have all survived—a rare feat across industries.

How Mobile and “Third Space” Fueled Growth

Shin Ja-sang argues that Maan Coffee fills a basic need: a comfortable place to meet friends. “China has teahouses, but prices vary wildly—from ¥30 to ¥500 per cup. Coffee is simpler—most cups cost around ¥30, with no guesswork.”

Founder of Sculpting in Time, Zhuang Songlie, once said coffee shops thrive on openness and conversation. DouBan CEO “Ah Bei” likens his platform to an online version of Sculpting in Time: people don’t go to cafés for the best coffee or food, but for a space to sit and talk.

Frequently Asked Questions

How many coffee shops are there in China today?

As of the latest data, there are 13,600 coffee shops in China, with the number growing daily—especially in cities like Beijing, which is seeing an 18% annual growth rate.

Which coffee chains are expanding fastest in China?

Maan Coffee plans to grow from 26 to 3,000 stores in 10 years. Starbucks aimed for 1,500 stores by 2015 (more than doubling its previous count), while Costa set a goal of 250 new cafés in three years. Pacific Coffee reached its 100th store in 2024.

What role did Starbucks play in China’s coffee culture?

Starbucks introduced coffee drinking habits and the concept of “coffee culture” to many Chinese consumers starting in 1999. Its focus on ambiance, music, and Western-style social spaces helped shape modern café expectations in China.

Are niche and independent cafés growing in China?

Yes. Specialized cafés targeting tech workers (like Garage Café and 3W Coffee), specialty coffee shops (like Fish Eye Café and Quali Café), and even delivery-only services (like Cani Coffee and Luckin Coffee) show a diverse and maturing market beyond traditional chains.

Did early Chinese coffee shops like Sculpting in Time survive?

Yes. Despite changes in the market, early players such as Sculpting in Time, UBC Coffee, and Starbucks have all remained in business—a rare continuity across China’s rapidly evolving commercial landscape.

Recommended FrontStreet Beans for Café Culture

For cafés embracing China’s coffee boom, FrontStreet Coffee’s Ethiopia Humbera offers bright citrus and floral notes ideal for pour-over fans, while the Brazil Queen Manor delivers chocolatey sweetness perfect for milk drinks. Both highlight the growing taste for high-quality, traceable beans that elevate third-wave experiences. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.