Specialty Coffee Retailer

Specialty Coffee Retailer December 2013

Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.

Issue link: https://read.dmtmag.com/i/225720

Contents of this Issue

Navigation

Page 13 of 35

INTERNATIONAL SPOTLIGHT Starbucks operates more than 360 locations in China. CHINA the Next Frontier in Coffee Growth BY JOSH BATE M AN W ith a population of 1.4 billion people, China offers tremendous opportunities for those in the coffee industry. According to the market intelligence firm Euromonitor International, China's coffee consumption is forecasted to grow at 9 percent over the next five years. Although this is half of what the growth rate has been over the last five years, it is still well above the consensus 2-3 percent growth rate expected globally. GLOBAL CHAINS AND INDEPENDENT BOUTIQUES According to research firm Mintel Group, the number of cafes in China doubled over the last five years and reached 32,000 in 2012. The global coffee chains recognize the potential China offers and have made significant investments in the country. Starbucks first opened a store in mainland China in 1999 and now controls a commanding 60 percent market share. 14 Over the last three years, they have more than doubled their number of stores to more than 360. Starbucks management views China as one of their most important markets going forward. China Daily reported that during the 2012 annual shareholder meeting, CEO Howard Schultz said: "I'm very optimistic about the Chinese economy and the future of China. It's no doubt that one day China will become our second-largest market after the US and it's possible that, over many years, potentially the largest one." Other global chains with large presences in China include Costa Coffee, Pacific Coffee, Paris Baguette, Coffee Bean & Tea Leaf, 85° Bakery Cafe, SPR Coffee, and UBC Coffee. It is not only the global chains realizing success in China. Particularly in the smaller cities, many boutiques are opening. In Xiamen, a smaller city by Chinese standards with a population of 3.5 million people, Emma's Brew House (EBH) has grown from one store in 2007 to three today. According to Jessie Tsai, an EBH representative, the number

Articles in this issue

Archives of this issue

view archives of Specialty Coffee Retailer - Specialty Coffee Retailer December 2013