Blue Bottle bets that Chinese consumers will drink more premium coffee
US premium coffee brand Blue Bottle Coffee will open its first Beijing store in the capital’s central business district, as it seeks to tap into China’s still growing market for the drink. The California-based brand is taking a spacious unit at China World Mall. The location, currently enclosed by construction hoarding, was previously occupied by Japanese jeweller Tasaki. The brand has yet to…
US coffee brand Blue Bottle Coffee is preparing to open its inaugural store in Beijing, aiming to capitalize on the expanding Chinese coffee market. The brand, hailing from California, will occupy a spacious unit at China World Mall, a location that was once home to Japanese jeweller Tasaki. While the exact opening date remains undisclosed, industry insiders anticipate the store to commence operations by year-end.
According to Cathy Chao, senior director of Asia-Pacific corporate ratings at Fitch Ratings, China's fresh coffee consumption per capita still trails behind markets such as Japan and South Korea. Blue Bottle Coffee positions itself as a premium choice in the Chinese market, with its Americano priced at 32 yuan (approximately US$4.77), which is notably higher than the 18 yuan (before discounts) charged by domestic rival Luckin Coffee.
Established in mainland China in 2022, Blue Bottle now boasts over 10 outlets across Shanghai, Shenzhen, and Hangzhou, along with six stores in Hong Kong. Despite the country's growing coffee culture, with China's per capita consumption reaching 28.6 cups in 2025, up from 16.7 in 2023, navigating the market could prove challenging.
Chinese consumers are increasingly price-conscious, which may impact Blue Bottle's premium pricing strategy. To succeed, the brand will need to differentiate itself through a unique in-store experience, top-tier coffee quality, and innovative product offerings, as suggested by Chao.
In an effort to bolster its position in the Chinese market, Blue Bottle Coffee was acquired by Centurium Capital, the controlling shareholder of Luckin Coffee, in a deal worth nearly US$400 million. This marks the first time a global premium coffee brand has been acquired by Chinese capital. Nestlé, the acquiring entity, disclosed the acquisition in its April earnings report, with the transaction expected to finalize in the first half of the year.
China's coffee consumption per capita has been steadily rising, reaching 28.6 cups in 2025, with over 550 million coffee enthusiasts in the country. In comparison, South Korea boasts an impressive annual per capita consumption of 405 cups, seven times the global average of 152, according to Euromonitor data.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
