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Booming South East Asian coffee shop market shows accelerated growth in 2015

Strong growth is predicted for the South East Asian branded coffee shop market, according to the new Project Café16 South East Asia released by Allegra Strategies World Coffee Portal.

The report’s emphasis is on coffee-focused chains across nine countries: China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Allegra predicts that by 2020 the number of outlets will exceed 24,000, representing overall growth at 11%.

Chinese market grows by four new branded coffee shops per day

China is the leading South East Asian coffee shop market, with growth of almost 40% after adding more than 1,400 outlets in the last 12 months.

Its growth is predicted to increase, as the market is growing by the equivalent of four branded coffee shops each day.

Indonesia also saw significant growth, expanding by 15% and Vietnam showed the third strongest percentage growth of 14%, albeit from a small market.

Starbucks leads in South East Asia

Starbucks is present in each of the nine countries covered in the report and is market leader in six.

The branded chain has more than 20% of the total South East Asian market, with more than 3,200 outlets across the nine featured countries, including more than 1,700 in China.

Benefitting from the strong McDonald’s presence in South East Asia, McCafé has the second largest share of the market with more than 1,500 outlets across the nine countries.

Thai chain Café Amazon with 1,130 outlets is the third largest by market share, although it has yet to expand outside of Thailand.

Influence of international chains

Café culture in South East Asia is seen as aspirational and this is fuelling the sector, particularly among younger consumers who are influenced by international branded chains.

Although localisation of beverages is important, consumers in South East Asia are looking for a Western coffee shop experience.

Therefore coffee shops in this region need to ensure that they are providing green tea lattes and seasonal beverages, as well as a westernised offering.

Exciting growth opportunities

Although there will be some consolidation in this market, with weaker brands closing more outlets as international chains become more dominant, there are exciting growth opportunities for chains in brand-embracing markets such as Indonesia and Malaysia.

For more information on Project Café2016 South East Asia, please email 
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