On its 10th anniversary of entrepreneurship, the Chinese local brand Yongpu Coffee recently opened its first store in Beijing near the Palace Museum; Collaborating with the game masterpiece "Black Myth: Wukong", Luckin Coffee has launched the new "Tengyun American Style", which has caused a sensation in various locations; International coffee chain brand Starbucks has launched a new series of blue and white porcelain coffee cups to celebrate its 25th anniversary in the Chinese mainland market... According to a report released by research firm "World Coffee Portal", China has become the country with the most branded coffee stores in the world by 2023. The reporter's investigation found that China's coffee industry has entered a period of rapid growth, showing a trend of integration of online and offline sales channels, continuous sinking of physical stores to third - and fourth tier cities, and innovation leading consumer experience. On a weekday afternoon, in the online live streaming room of Yongpu Coffee located on the west coast of Shanghai, a host was "promoting" cold brewed liquid coffee, hanging ear bags, capsule coffee, and various coffee derivatives, attracting about 15000 customers to watch online. On February 26, 2024, in the Yongpu Coffee live broadcast room located on the west coast of Shanghai, a coffee sales anchor was live streaming the sale of coffee cold extract. In order to serve more young consumers and be more down-to-earth, Yongpu Coffee, which started with online sales, is gradually entering the offline market. Its newly opened first store in Beijing has become a "neighbor" with the Palace Museum, Jingshan Park, China Art Museum, etc. Its products integrate elements such as China Red and Tomatoes on sticks. At the same time, many traditional coffee brands that focus on physical stores are constantly expanding their online sales channels. According to Meituan data, the five major coffee consuming cities of Shanghai, Beijing, Chengdu, Shenzhen, and Guangzhou have seen continuous growth in their online adoption rates and coffee delivery transaction volumes. From a handful of green beans to a cup of coffee, small coffee beans connect a long industrial chain. Including coffee plantations that grow coffee beans in the upstream, roasting factories that process coffee in the midstream, and coffee shops that produce finished coffee products in the downstream. Taking Starbucks as an example, a year ago, the Starbucks China Coffee Innovation Industrial Park was put into operation in Kunshan, Jiangsu, marking the large-scale integration of a "coffee full industry chain" that includes Yunnan coffee bean planting areas, Kunshan and Shanghai roasting bases, as well as stores and online sales networks in various regions. The "Yunnan Coffee Bean Industry Development Report 2023" shows that the planting area and output of coffee beans in Yunnan account for over 98% of the total planting area and output in the country. LAVAZZA coffee from Italy and Blue Bottle coffee from the United States have also tried the Chinese market. Food industry analyst Zhu Danpeng believes that foreign companies are willing to enter the coffee and related production fields, and attach great importance to asset support, which indicates that these brands are optimistic about the prospects of the Chinese market and also reflects their confidence in the Chinese economy. The "2024 China Urban Coffee Development Report" jointly released by the Shanghai Cultural and Creative Industry Promotion Association and multiple institutions shows that the scale of China's coffee industry will reach 265.4 billion yuan in 2023, and is expected to increase to 313.3 billion yuan in 2024; The per capita annual consumption of coffee in China has risen from 9 cups in 2016 to 16.74 cups in 2023. Physical stores are sinking into third - and fourth tier cities, with a clear trend towards specialization and refinement. A journalist survey found that with the development of coffee consumption habits and the lowering of consumption thresholds, coffee stores in first - and second tier cities in China have gradually become saturated in recent years. However, there is still great potential for the third - and fourth tier sinking markets. Based in first - and second tier cities, competing in third - and fourth tier cities, the latter will be the 'blue ocean' of the coffee industry Analysis by Shi Jun, Secretary General of the Coffee Professional Committee of the Shanghai Food Association. Data shows that as of June 2024, Starbucks has expanded to over 900 county-level markets in mainland China, with an increase in the number of stores to 7306. According to Starbucks' latest quarterly financial report, from April 1 to June 30, 2024, Starbucks has entered 38 county-level markets in mainland China. We will continue to explore huge 'blue ocean' opportunities and serve more communities, "said Liu Wenjuan, Co CEO of Starbucks China. On June 21, 2023, people were drinking coffee at a caf é in Dayuan Central Park, Chengdu. When Chinese and foreign chain coffee brands actively embrace the sinking market, independent coffee shops are also flourishing. In Kuanzhai Alley, the main urban area of Chengdu, Sichuan Province, separated from Starbucks by a wall, the sign of Yiding Coffee is very eye-catching. There are many young people coming to consume, many of whom are foreign tourists, "said Ding Zhi, the manager of Yiding Coffee." Coffee shops are not just places for taking photos and checking in, but also a condensed representation of the cultural atmosphere of the city. "According to the" 2023 Chengdu Coffee Industry Survey Report "released by the Coffee Branch of Chengdu Catering Industry Association, about 70% of coffee shop managers in Chengdu only operate one coffee shop. Meanwhile, over 50% of the respondents drink one cup of coffee per day, and 18% of the respondents drink two or more cups per day. Liu Cheng, President of the Coffee Branch of the Chengdu Catering Industry Association, said that in line with the trend of personalized and diversified coffee consumption, more and more specialty and refined coffee shops are emerging, promoting a more diverse coffee consumption scene and a more dynamic market. From quantity to quality, innovation and change are endless. "The coffee industry in the Chinese market has the potential for continuous innovation, which is one of the secrets to Starbucks' success in China." Howard Schultz, founder of Starbucks, said in Shanghai earlier this year that the coffee industry cannot rely on "discount wars" to gain development momentum, and must provide consumers with more new experiences through innovation in order to lead the market. The research report of Guojin Securities shows that under the influence of globalization and the Internet, with the acceleration of overlapping work pace, China's "post-90s" are far more receptive to coffee drinks than previous generations, and are increasingly becoming the "main force" of coffee consumption. In Chengdu, innovation is the relentless pursuit of coffee shop owners. From cultural themes to design and decoration, from brand names to cup and plate supplies, coffee shop owners rack their brains to provide emotional value for young consumer groups. Giant pandas, Sichuan peppercorns, Wuhou Temple, and bronze masks from Sanxingdui... Various "Sichuan elements" have been boldly added to coffee specialties by baristas, creating a unique "Sichuan style coffee". Liu Cheng believes that cross-border cooperation to launch some specialty drinks is a good thing for the coffee market, as it increases the understanding of coffee among young main consumers, including those who do not drink coffee, and helps discover more potential consumers. At present, the Chengdu market is still in the stage of coffee consumption and store opening fever. The coffee industry still needs to continue to innovate in quality, business models, and other aspects, and truly drive brand and consumption upgrades through quality upgrades. Shi Jun stated that the increase in the number of stores is a side confirmation of the sustained strong coffee consumption, and more importantly, it is necessary to promote the sustained high-quality development of the industry through innovation, so that more people can enjoy high-quality coffee while enjoying its leisure, social, entertainment and other functions. This is also what contemporary young customers value the most