Shanghai: How the coffee shop culture became popular in the city (2024)

Shanghai: How the coffee shop culture became popular in the city (1)Shanghai: How the coffee shop culture became popular in the city (2)BBC

Walk through the streets of Shanghai and its café culture is unmissable. There are some areas where you won’t be able to turn without passing yet another new little café.

China’s financial capital now has so many coffee shops that the government claims it has the most of any city in the world.

The city’s café culture has been developing for years, but the post-Covid opening up has really given it a boost, as locals embrace outdoor living, looking for places to meet their friends and family.

However, with so many new establishments, the competition for customers has become fierce. Most owners we spoke to don’t think all these businesses can survive.

Shanghai officials say there are “more than 8,000 cafes in the city”. And a report by the Shanghai International Coffee Culture Festival, recorded 9,553 coffee shops at the end of 2023.

And it’s not just the number of outlets that sets Shanghai apart.

Where other Chinese cities are still dominated by big coffee chains like Starbucks and its local rival Luckin, Shanghai’s café explosion is largely fuelled by niche, independent outlets, like Hidden Track.

Shanghai: How the coffee shop culture became popular in the city (3)Shanghai: How the coffee shop culture became popular in the city (4)

Its owner Dong Xiaoli says she had "no choice” but to dive head first into the industry because she was so passionate about coffee.

But it hasn’t been easy.

Asked what advice she would give someone considering following in her footsteps, she laughs and replies: “I’d say don’t do it.”

“The investment versus return is awful. You need to buy expensive machines and put a lot of money into decorating. You’re earning very small amounts of money compared to other industries.”

To succeed in this very crowded market, having a distinct vibe has become as important as anything else in attracting customers.

Hidden Track has gone for a limited menu and a simple, minimalist vibe which opens onto the street in a welcoming fashion.

Shanghai: How the coffee shop culture became popular in the city (5)Shanghai: How the coffee shop culture became popular in the city (6)

Being seen at a café here is considered hip and urbane, and that has helped drive young customers through the doors. Cafes have become a social occasion with many young people to get dressed up and meet for coffee and a chat.

Shanghai's residents who have long seen themselves as the inheritors of an outward-looking, cosmopolitan attitude which permeated Shanghai in the early decades of the 20th century, are also proud of their café culture.

“Shanghai has long been an international trading city: we started drinking coffee a long time ago. Smaller cities will also gradually get different types of cafes,” says one man sitting at a café.

A woman nearby agrees that the local café culture is now solidly established. Asked how many cups of coffee she drinks a day, she laughs out loud and replies: “As many as I like.”

Shanghai: How the coffee shop culture became popular in the city (7)Shanghai: How the coffee shop culture became popular in the city (8)

And as the cafes increase, so does the appetite for experimentation.

The coffee converts of this tea-drinking giant are keen to try new flavours and new brews.

Yuan Jingfeng, who runs the R1070 café, says all his beans come from Japan.

“My costs are very very high. My imported beans include American and Italian styles which are all imported from Japan in their original packaging,” he says.

“Wholesale prices have gone up dramatically over the past few years. The wars in Yemen and Ethiopia have both had an impact. The good beans are getting fewer while the number of coffee drinkers keeps increasing."

But, so far, he says he has resisted passing on the increased costs to his growing base of coffee drinkers.

AC café is owned by deaf people and employs deaf baristas.

Yang Yanfang – who interprets at AC for those who can’t speak with their hands – says that, after the pandemic, "friends are really keen to meet up for a coffee or a drink and Shanghai has become a city with a really strong coffee culture."

"I can skip meals, but I can't skip my coffee," she adds.

Shanghai: How the coffee shop culture became popular in the city (9)Shanghai: How the coffee shop culture became popular in the city (10)

And this is not the only café of its kind.

Another popular café, which is operated by blind staff, serves coffee through a hole in the wall, from someone wearing a monkey suit arm, to customers waiting in the street.

Along one stretch of road, we counted 18 cafes within only a couple of hundred metres. All of them had plenty of customers inside.

Owners are hoping this will not be just a passing fad.

According to some estimates, China’s coffee market was valued at more than 260 billion yuan (US$35bn) last year. It’s been projected that it could increase by another hundred billion (US$13bn).

The country’s branded coffee shop market grew by 58% last year, according to the World Coffee Portal.

Shanghai: How the coffee shop culture became popular in the city (11)Shanghai: How the coffee shop culture became popular in the city (12)

With overheads so high in Shanghai, many coffee shops can’t afford to have their space under-utilised at night. So, when the sun goes down, they are turning their cafes into bars, sometimes with live music.

The owner of the Flower Café and Bar, Wang Xi, has a prime spot with a clear view of the city. His margins are very tight but, at the moment, his venture is surviving.

“I’m a quite optimistic,” he says. “I hope the Chinese economy will quickly return to pre-pandemic levels. If the economy flows again, everyone will make a profit.”

China’s economy may be facing some significant hurdles but, as Wang Xi speaks, he looks out across the customers sitting at little tables and chairs staring down Suzhou Creek towards a gleaming Shanghai skyline and – on this night – it’s hard not to share his optimism.

China

Coffee

Shanghai

Shanghai: How the coffee shop culture became popular in the city (2024)

FAQs

Shanghai: How the coffee shop culture became popular in the city? ›

The city's café culture has been developing for years, but the post-Covid opening up has really given it a boost, as locals embrace outdoor living, looking for places to meet their friends and family. However, with so many new establishments, the competition for customers has become fierce.

How did coffee become popular in China? ›

In the early 20th century, coffee was introduced to the southwestern province of Yunnan, which has a climate and topography suitable for coffee cultivation. Coffee production in China grew steadily during the 20th century, and in recent years, specialty coffee shops have become increasingly popular in urban areas.

How did coffee shops become popular? ›

Part of the reason coffee houses became so popular were because they promoted sobriety. Many people (wisely) primarily drank little beers or weak ale at taverns at the time, because water was rarely potable. Boiling water for coffee (and tea), however, killed bacteria and didn't result in a mildly intoxicated public.

Why is coffee shop popular nowadays? ›

Aside from the social benefits offered by coffee shops, they also provide a wonderful space to work and study. As working from home and flexible work hours become more popular, more people are migrating from their usual office to spend at least some portion of the working day setting up shop in a cafe.

Why is coffee culture so popular? ›

Overall, coffee culture has become popular because it offers a social and sensory experience that is both enjoyable and accessible. Coffee has a rich history with a diverse range of flavours and aromas focusing on craftsmanship and artistry; it's no wonder that coffee has become such an integral part of modern culture.

How did coffee gain popularity? ›

After the Boston Tea Party of 1773, large numbers of Americans switched to drinking coffee during the American Revolution because drinking tea had become unpatriotic.

When did coffee start to become very popular? ›

By the 17th century, coffee had made its way to Europe and was becoming popular across the continent.

Where did cafe culture come from? ›

The culture surrounding coffee and coffeehouses dates back to 16th-century Turkey. Coffeehouses in Western Europe and the Eastern Mediterranean were not only social hubs but also artistic and intellectual centres.

Why is the coffee industry so popular? ›

It is this celebration of the experience, rather than the beverage alone, that has driven coffee's global success, says José Sette, the executive director of the International Coffee Organization. “Coffee is as popular as it is because it is a social currency,” he says. “It brings people together.”

Why do people love coffee shops so much? ›

This environment can make us feel more comfortable and relaxed, which can help us to be more productive and creative. Additionally, many coffee shops play background music, which can help to reduce distractions and increase focus. Another factor that contributes to the appeal of coffee shops is the social environment.

Why coffee become trendy? ›

Coffee's popularity among common people can be attributed to its stimulating effects, rich flavor, and widespread availability. The caffeine in coffee provides a boost in energy and alertness, making it a go-to beverage for many to kickstart their day.

What demographic goes to coffee shops the most? ›

Rely on studies and statistics

Millennials are the best target market you could have when it comes to coffee. According to research conducted by Datassential and the National Coffee Association, as cited by Bloomberg, 44 percent of total U.S. coffee consumption now comes from the bracket ages of millennials.

Who visits coffee shops the most? ›

Coffee drinkers span geographical locations, age groups, genders, and just about every other demographic. Typically, coffee statistics have shown the demographics of coffee shop customers lean more toward women than men; workers with higher salaries tend to drink more coffee; and more older adults consume the beverage.

Why is coffee becoming popular in China? ›

He cited the high job stress and long hours workers face as reasons for coffee's growing popularity, as well as the addictive nature of caffeine. “As colleagues start to pick up the habit, it gradually forms a coffee culture,” he said.

How is the cafe culture increasing? ›

There has been an emergence of cafe culture in the country. From Starbucks to Third Wave, the Indian coffee industry is experiencing a shift in culture. With so many younger people moving toward a 'cafe culture', coffee companies are expanding their presence in the country.

What is the coffee culture theory? ›

Coffee culture appears in the way in which people consume coffee, the way they make it, and where coffee is served and shared. Each of these factors combined reflects the lives of the people in these countries and the importance of coffee across the world.

How did Starbucks become successful in China? ›

Starbucks' success in China can be attributed to its strategic approach to market entry and localization. By adapting its menu and store design to Chinese culture and preferences, and by engaging with customers through social media and other channels, Starbucks was able to establish a strong brand presence in China.

What is the primary reason coffee shops are flocking to China? ›

Explanation: The primary reason why coffee shops are flocking to China is because it's a new market. The concept of comparative advantage plays a crucial role here. China provides a large untapped market with the potential for significant profit growth.

How did Luckin Coffee overtake Starbucks as the largest coffee chain in China? ›

“Luckin Coffee grew to 10,829 stores in China at the end of June, surpassing Starbucks as the largest coffee chain brand in the country following what one analyst calls an “aggressive” expansion. In comparison, Starbucks operated 6,480 stores in mainland China at the end of the second quarter.

When did coffee become popular in Asia? ›

Coffee has a rich history in Asia, and it was first introduced to the region by the Dutch and British from the 1600s to the 1800s. These early colonists introduced arabica coffee plants along with several other cash crops like sugar and tea.

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