Cafes, Bars & Other Drinking Establishments in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
6730Revenue
$9.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
184k
Businesses
3,988
Wages
$XXX.Xm
Cafes, Bars & Other Drinking Establishments in China industry analysis
Revenue for the Cafes, Bars, and Other Drinking Establishments industry in China is expected to increase at a CAGR of 16.4% over the five years through 2023 to $9.0 billion. This trend includes an expected increase of 20.1% in the current year.In recent years, lifestyle changes, an increasing emphasis on personal happiness, and the development of a range of drinking establishments have contributed to rapid industry growth. In addition, increasing urbanization in China and higher incomes have boosted the demand for industry services. Improvements in chain store and franchise management and the emergence of new brands have also supported the industry's development over the past five years.The outbreak of COVID-19 has affected the operation of cafes, bars, and other beverage stores. In 2020, the industry's revenue increased slowly compared with previous years, mainly due to the outbreak of COVID-19 in China. Although in 2021, the effective control of COVID-19 restores the rapid growth of industry income, the repeated occurrence of COVID-19 in 2022 led to the reduction of the industry growth rate again.ACMR-IBISWorld forecasts that industry revenue will increase at an annualized 17.5% over the next five years, to reach $20.2 billion. Competition is projected to intensify as more chain stores, franchises, and independent drinking establishments are set up. Increased competition will also prompt players to look for new opportunities in less-developed regions. As a result, chain operations will continue spreading from east to west, and from first- and second-tier cities to third- and fourth-tier cities.
Trends and Insights
- COVID-19 slowed down the growth of the industry. Restrictive policies have temporarily closed drinking places such as cafes and bars, resulting in a limited number of consumers.
- Tea drink stores are the most popular among consumers. The main products of tea beverage stores are milk tea, ice tea, as well as cold drinks, coffee, and ice cream, which are popular among young students and office staff.
- East China region benefits from a developed economy. Jiangsu, Zhejiang, and Shanghai have a dense population and high per capita disposable income, making them more willing to spend money on coffee and tea beverages.
- Product quality is the foundation of competition. Consumers are very concerned about the quality, taste, and safety of beverages.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 16.4 % over the past five years, to reach an estimated $9.0bn in 2024.
Trends and Insights
COVID-19 affects the operation of cafes, bars and other drinking establishments
- China's strict restrictive policy on COVID-19 requires that cafes, bars and other drinking establishments should be temporarily closed or the number of consumers per day be limited.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry growth rate will recover from COVID-19
- With the relaxation of restrictions on COVID-19 at the end of 2022, China's domestic economy is recovering. Shop consumption will gradually recover.
Biggest companies in the Cafes, Bars & Other Drinking Establishments in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Cafes, Bars & Other Drinking Establishments in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tea drink shops, Cafes and Ice cream shops. Tea drink shops is the largest segment of the Cafes, Bars & Other Drinking Establishments in China.
Trends and Insights
Tea drink shops have the highest proportion of consumption
- Tea drink shops are becoming a favorite among young students and office workers. The main products of tea drink shops include milk tea and iced tea.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Supermarkets in China
- Hotels in China
- Fast-Food Restaurants in China
Complementors
- There are no industries to display.
International industries
- Bars & Nightclubs in the US
- Coffee & Snack Shops in the US
- Wine Bars in the US
- Bakery Cafes in the US
- Juice & Smoothie Bars in the US
Table of Contents
About this industry
Industry definition
The Cafes, Bars and Other Drinking Establishments industry in China comprises cafes, tea houses, and bars that primarily provide beverages (alcoholic and non-alcoholic) for immediate consumption on-premise or off-premise. Mobile counters (i.e. street vendors) are not included in this industry.
What's included in this industry?
Tea drink shopsCafesIce cream shopsBars and pubsTea housesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
ON-PREMISE CONSUMPTIONOFF-PREMISE CONSUMPTIONSOFT DRINKSPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 slowed down the growth of the industry. Restrictive policies have temporarily closed drinking places such as cafes and bars, resulting in a limited number of consume...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Tea drink stores are the most popular among consumers. The main products of tea beverage stores are milk tea, ice tea, as well as cold drinks, coffee, and ice cream, which ar...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
East China region benefits from a developed economy. Jiangsu, Zhejiang, and Shanghai have a dense population and high per capita disposable income, making them more willing t...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Product quality is the foundation of competition. Consumers are very concerned about the quality, taste, and safety of beverages.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Chain enterprises dominate the market. The top companies in the industry are all large chain enterprises, expanding their scale by opening branches.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Policies has regulated the industry. The legal supervision of the industry mainly focuses on food safety issues.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The average profit in the industry is very high. However, the profitability of enterprises in different regions and sizes varies.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cafes, Bars & Other Drinking Establishments industry in China in 2024?
The market size of the Cafes, Bars & Other Drinking Establishments industry in China is $9.0bn in 2024.
How many businesses are there in the Cafes, Bars & Other Drinking Establishments in China industry in 2024?
There are 3,988 businesses in the Cafes, Bars & Other Drinking Establishments industry in China, which has grown at a CAGR of 5.0 % between 2019 and 2024.
Has the Cafes, Bars & Other Drinking Establishments industry in China grown or declined over the past 5 years?
The market size of the Cafes, Bars & Other Drinking Establishments industry in China has been growing at a CAGR of 16.4 % between 2019 and 2024.
What is the forecast growth of the Cafes, Bars & Other Drinking Establishments industry in China over the next 5 years?
Over the next five years, the Cafes, Bars & Other Drinking Establishments industry in China is expected to grow.
What does the Cafes, Bars & Other Drinking Establishments in China include?
Tea drink shops and Cafes are part of the Cafes, Bars & Other Drinking Establishments industry.
How competitive is the Cafes, Bars & Other Drinking Establishments industry in China?
The level of competition is moderate and increasing in the Cafes, Bars & Other Drinking Establishments industry in China.
