Editor’s Note (coffeeyo.com): The latest report from World Coffee Portal shows that China’s branded coffee shop count has reached 49,691, up 58% year on year, surpassing the United States (40,062) for the first time to rank first in the world; growth is mainly driven by domestic chain brands such as Luckin Coffee and Cotti Coffee.
No. 1 in the World! China’s Coffee Shop Count Surpasses the U.S.
Recently, World Coffee Portal, a research institute under Allegra Group, released its latest annual report on the East Asian coffee market. The report shows that China has surpassed the United States to become the country with the most branded coffee shops in the world.
China’s coffee shop growth, however, is mainly driven by chain brands Luckin Coffee and Cotti Coffee. Over the past year these two domestic chains expanded rapidly, adding 5,059 and 6,004 stores respectively — a combined net increase of over 11,000 new outlets. Only six years old, Luckin Coffee now operates 13,273 stores in China, making it the largest operator at present.
Over the past 12 months, six of East Asia’s ten largest coffee markets achieved double-digit store growth. On the list of fastest-growing markets, behind China are Malaysia (up 28%) and the Philippines (up 15.3%).
As the branded coffee shop market across East Asia matures, more operators are seeking international growth. Asian coffee chains are gaining prominence: domestic chains such as Korea’s Mega Coffee, Indonesia’s Tomoro Coffee, and Malaysia’s Zus Coffee are increasing their market share. Cotti Coffee has entered South Korea, Indonesia, and other countries; Luckin, Kopi Kenangan, and Compose Coffee have all opened international stores — and these companies’ overseas expansion is shaking Starbucks’ dominance.
Allegra Group CEO Jeffrey Young said in a statement, “Led by China’s astonishing expansion in coffee shop numbers, the East Asian market is clearly experiencing rapid growth. China has rapidly become a global coffee powerhouse.”
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