(Vietnambiz.vn)_A series of domestic tea and coffee brands – Starbucks’ competitors in China such as Hey Tea, Nayuki,… have successfully raised capital within the first 4 months of 2021.
Domestic coffee brands in China are emerging as Starbucks’ main competitors in the country of billions of people, CNBC reports. news.
The F&B giant considers China its top market outside the US. Starbucks also said that the lifting of distancing orders could become a growth engine for the company in the Chinese market. However, this brand is facing great competition from domestic coffee companies.
According to information from business data company Qimingpan, within the first 4 months of 2021, there were 14 successful capital calls in the tea and coffee market in China. This number is exactly equal to the total number of capital calls in 2019 and only slightly less than the 19 capital calls in 2020.
Some of the notable deals include investments in Hey Tea and Nayuki, which sell tea-based beverages and have been valued at $2 billion over the past few months.
Besides, some foreign brands such as illycaffe or Tim Hortons are also raising capital for their joint ventures in China.
According to the CNBCAlthough it is difficult to specify because many deals do not disclose contract details, according to various data sources, China’s domestic coffee and beverage brands are growing rapidly.
December 2020, page 36kr of China reported that Manner Coffee, a coffee maker based in Shanghai, has received an investment of more than $1 billion. This coffee brand focuses on selling beverages in small, take-out locations in business districts.
In its annual report, Starbucks said the entry of new entrants in China was a potential risk. The Chinese market is a major contributor to Starbucks’ total revenue and profit.
Guangzhou and Shenzhen have seen thousands of coffee shops pop up in the past five years, according to data from Meituan. Also follow Meituan, Shanghai remains the largest coffee market in China, followed by Guangzhou, Shenzhen and Beijing respectively.
Great opportunity for local milk tea brands
According to the data of EuromonitorStarbucks is still the leader in the tea and coffee market in China in 2020, accounting for 36.4% of the market share.
In China, however, the tea-based beverage market is twice as large as the coffee market, and that gap is expected to widen in 2021. Meituan industry data citations. The company also said that the number of milk tea and juice shops is four times higher than the number of coffee shops.
Hey Tea currently ranks second behind Starbucks in the tea and coffee market in China with 8.8% market share. At the same time, Hey Tea is also expanding the market to many other countries, with 1.1% market share worldwide, figures from Euromonitor.
