APAC cafe growth widens as new beverage concepts emerge

Specialist coffee and tea market to reach $45b in 2025.

Specialist coffee and tea shops in Asia Pacific are expected to reach $45b in 2025 and grow at a 9% compound annual growth rate through 2030, as brands expand across the region and new beverage concepts widen competition, according to a report by Eurominitor.

The growth is being led by China, South Korea and Japan, which are projected to post CAGRs of 14%, 6% and 5%, respectively. In Southeast Asia, Malaysia is set to record 12% growth, driven by local brand expansion and the entry of Chinese brands amid rising disposable income and urbanisation.

Coffee and tea specialists are also facing a more crowded market as limited-service restaurants push further into beverages through in-house menu extensions, new outlet concepts and collaborations.

Competitive pricing, continuous beverage innovation and local flavours are helping brands attract consumers, but newer players are reshaping the market by creating more beverage concepts and consumption occasions.

That shift is lining up with broader consumer trends flagged by Mintel. Its 2026 food and drink predictions said sensory-led innovation is becoming more important in foodservice, with brands expected to use texture, aroma and other cues more strategically as consumers look for more experiential eating and drinking occasions.

Gen Z is rethinking where and how people socialise, citing formats such as coffee shop morning raves, bakery runs and sauna parties as examples of out-of-home occasions where food and drink play a bigger role.

Mintel also pointed to a longer-term shift towards more diverse and inclusive eating patterns, with consumers expected to move away from rigid nutritional goals and towards variety, convenience and pleasure.