China leads significant coffee shop growth across East Asia

The booming Chinese branded coffee market has surpassed the United States as the largest branded coffee shop market in the world by outlets, according to an industry survey.

Over the last 12 months, China has grown 58 percent, reaching 49,691 outlets, according to Allegra World Coffee Portal, a global coffee market research provider, in its analysis of the East Asian branded coffee shop market released on Dec 12.

The growth was led by the rapid expansion of small store format and delivery-focused brands such as Luckin Coffee and Cotti Coffee, which added 5,059 and 6,004 net new stores, respectively.

Starbucks opened a net of 785 outlets in China during the period and is the second largest branded coffee operator in the country by outlets.

China leads as the fastest-growing market in East Asia ahead of Malaysia (28 percent) and the Philippines (15.3 percent). The World Coffee Portal forecasts China's booming outlet growth is expected to slow to 24 percent in 2024 and 6 percent in 2028.