Last week Starbucks partnered with Alibaba to expand into the coffee delivery space and boost digital distribution in the fastest growing market for coffee: China.
Starbucks’ had a mixed showing this quarter, where the company was able to beat expectations on revenue and earnings, but performed poorly in China. China is a critical driver for long term growth for the company as it is the fastest growing market for coffee sales. Currently, China’s consumption per capita stands at around a half cup per year, which is 600 percent lower than the United States per capita coffee consumption. If Chinese consumption inches up by just a fraction of where the United States presently stands, Starbucks will see many promising fiscal quarters to come.
Starbucks Partners with Alibaba to Push Coffee Sales
Coffee Consumption
Description
This chart outlines the coffee market in China by number of coffee stores and projected consumption.
