When Coffee Meets Shanghai
China Today (English)|April 2021
AT present, Chinese consumption of coffee is far less than that of tea products. However, with the improvement of people’s living standards and the growing coffee culture coupled with the huge demographic dividend that stimulates domestic consumption, there has been a continuous expansion in the coffee consumption.
JIN JI & KE KE
When Coffee Meets Shanghai

The average growth rate of global coffee consumption is two percent, which is close to market saturation, whereas coffee consumption in China is growing at an astonishing rate of 15 percent annually. According to data from the International Coffee Organization, the market size of China’s coffee industry will reach RMB 1 trillion in 2025. Its coffee market is entering a stage of rapid development, and new brands are constantly emerging.

On January 6, Chinese President Xi Jinping communicated his encouragement to Howard Schultz, chairman emeritus of Starbucks Corporation, expressing his wish for Starbucks to continue to play an active role in promoting Sino-U.S. economic and trade cooperation and the development of bilateral relations.

Coffee from Abroad

The Starbucks Index is an indicator that reflects one region’s economic vitality and investment environment. The more Starbucks stores there are in a place, the more dynamic its economy is. Since entering the Chinese market in 1999, Starbucks has opened 4,700 stores in nearly 190 cities. It is among the first international coffee brands to enter China and has served as a bridge for cultural integration.

In 1989, the American urban sociologist Ray Oldenburg proposed “the third place” in his book The Great Good Place: outside the home and office, the place where people want to spend a good time. This concept was developed by Schultz into the cornerstone of Starbucks culture. It was also quickly embraced by Chinese citizens, and a growing number of them are now accustomed to working and socializing in the café.

Affected by the epidemic, Starbucks’ business was facing some issues, so opening stores in China turned out to be a life-saver.

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