China's Love for Tea Turns to Coffee: Surpassing the Number of Branded Coffee Shops in the US

Subscribe to CNN's Meanwhile in China newsletter to stay informed about the country's global impact and rising influence. In a recent report by World Coffee Portal, China has surpassed the United States as the largest market for branded coffee shops in terms of outlets.

The worlds second-largest economy saw a 58% increase in the number of branded coffee shops in the past year, with a total of 49,691 outlets, according to a research firm. During this period, Starbucks opened 785 outlets, making it the second largest branded coffee operator in the country. The largest coffee chain in the country is Luckin Coffee, with over 13,000 outlets, despite being involved in a fraud scandal and being delisted from Wall Street three years ago.

According to World Coffee Portal, over 90% of the 4,000 Chinese coffee shop customers surveyed drink hot coffee on a weekly basis. Additionally, 64% of them enjoy iced coffee at least once a week. The statement also noted that nearly 90% of the surveyed consumers visit or order from a coffee shop at least once a week.

China has emerged as a significant force in the global coffee industry, despite facing various economic challenges in recent years.

Just this year, Starbucks invested over $200 million in a new campus located in the eastern region of the country. When the center opened in September, the beverage behemoth proclaimed it as the biggest investment it has ever made in a coffee production and distribution facility outside of the United States.

China has consistently been a key factor in Starbucks' growth, being its second largest market globally and the top market overseas. However, CEO Laxman Narasimhan believes that the company is still in the early stages of development in China, citing the relatively low coffee consumption in a nation known for its tea-drinking tradition.

The US coffee chain is targeting 9,000 stores in China by 2025, World Coffee Portal said.