Coffee spending in China to grow from 2022 to 2026: Fitch
Firms are entering the growing coffee market in China.
The historically tea-drinking market is now increasing spending in coffee segments, and it is expected to grow in the short and medium term from 2022 to 2026, Fitch Solutions said.
In its insight, Fitch found that several domestic and international firms are entering the growing coffee market in China.
The demand for coffee shops also stemmed from the millennial and Gen Z population, who live and work in urban areas.
Luckin Coffee and Starbucks are also expanding their store network across the major cities.
“Most companies are hoping their coffee business will be able to complement their core business offerings, attracting more foot traffic to their physical stores and building greater overall loyalty to the brand,” said Fitch.
As this happened, Fitch said they are still seeing that essential spending will increase by 6.7% year-on-year in 2022 compared to the 2.4% growth expected in non-essential spending.
