The Coffee and tea beverage economy continues to expand, becoming an indicator that directly reflects regional economic vitality, symbolizes urban prosperity, and showcases the lifestyle of city residents.
The coffee and tea beverage industry in Wuhan is accelerating its development, with market penetration rates continuously rising. Coffee and milk tea are not only a “lifesaving elixir” in the hands of Wuhan residents but also an organic fusion of Wuhan's urban culture and commerce.
Wuhan is focused on becoming the first “Coffee + Tea” capital in the country.
In recent years, three changes have occurred in Wuhan's coffee and tea beverage market: first, the government has increasingly prioritized consumption, laying the foundation for the industry's rapid development; second, the market penetration rate of coffee and tea beverages has gradually increased, and the consumer base has grown accordingly; third, there has been a noticeable increase in customer demands for the quality of coffee and tea beverages, driving brands to continually update their products.
Image | Scenery of Wuhan
On June 12th, the Wuhan Municipal Bureau of Commerce issued the “Work Plan for Promoting High-Quality Development of the Coffee and Tea Beverage Industry in Wuhan City” (hereinafter referred to as the “Work Plan”); on June 28th, it issued the “Implementation Details of the Special Funds for International Consumer Center City Construction (Promoting High-Quality Development of Coffee and Tea Beverages)” (hereinafter referred to as the “Implementation Details”).
The goal of building a “Coffee + Tea” capital was proposed, making Wuhan the first city in the country to anchor this goal and introduce specialized policies.
Image | Wuhan issues the “Work Plan for Promoting High-Quality Development of the Coffee and Tea Beverage Industry in Wuhan City”
Coffee + Tea, Breaking Through in International Consumer Center City Construction
In the current competition among major cities to become international consumer center cities, targeting coffee and tea beverages and capturing the tastes of young people has become a crucial approach.
This time, Wuhan is attempting to create a new city Brand as the “Coffee + Tea” capital through the dual drive of policy and market, opening up new ideas for the development of an international consumer center city.
Image | Coffee and tea beverages become hotspots in city consumption
The “Work Plan” makes increasing the number of coffee and tea beverage outlets its top priority. It proposes encouraging and supporting branded coffee and tea beverage stores to open in “four stations and one field” (Wuhan Station, Wuchang Station, Hankou Station, East Wuhan Station, and Tianhe Airport), 4A and above tourist attractions, hospitals of tertiary A level and above, universities within the city, and district-level and above large sports venues, promoting the opening of outlet resources to branded coffee and tea beverage enterprises. By 2026, the city aims to add 100 new branded coffee and tea beverage stores each year.
The accompanying “Implementation Details” support the coffee and tea beverage industry with tangible financial incentives. It clearly specifies the conditions that businesses and stores must meet to apply for special funds and the standards for funding support. In particular, reward funds can be applied for cumulatively, with a maximum reward amount of 120,000 RMB per store, and a maximum reward amount of no more than 500,000 RMB per legal entity applying for funds in principle.
Image | Wuhan aims to become the “Coffee + Tea” capital
What Does Wuhan Have Going For It?
Looking across the country, Wuhan's bold initiative to become the “Coffee + Tea” capital is quite impressive. However, in the current intense competition in the coffee and tea beverage sector across the country, what does Wuhan have going for it to achieve this goal?
Image | Optic Valley, a gathering place for young people in Wuhan
By Consumer Base
Wuhan has a large population base and many young people, along with multiple city centers, allowing brands to flourish in various regions.
Data shows that in the new tea beverage consumption in China, those aged 22-40 account for 81%. Wuhan, the “city of youth” with 83 universities and over 1.3 million college students, provides fertile ground for the natural development of new consumption forms like tea beverages and coffee.
According to data from the Ele.me platform, in the tea beverage market, Wuhan leads in terms of growth in tea beverage consumption; in the coffee market, Wuhan ranks among the top ten in terms of growth in coffee consumption, and it surpasses cities like Chongqing, Guangzhou, Hangzhou, and Changsha. The “Coffee + Tea” market is in a stage of rapid development.
CharlieTown, known as the “Hermès of milk tea,” opened its first Central China store at Wuhan MixC in early July. Currently, the store sells over 2,000 cups per day, experiencing the full enthusiasm of Wuhan. Now, the second Wuhan store has opened at Wuhan SKP.
Image | CharlieTown opens its first Central China store at Wuhan MixC
By Geographic Advantage
Centrally located in China, Wuhan enjoys convenient transportation, providing obvious advantages in daily management and supply chain logistics, attracting an increasing number of coffee and tea beverage companies to accelerate their layout.
Wuhan is the city with the most diverse types of Starbucks stores in Central China. Since entering Wuhan and establishing its Central China headquarters in 2007, several Central China flagship stores have been successively established in Wuhan, and currently, there are over 180 stores in the city.
In addition, Wuhan has become the city with the most stores outside of Changsha, the headquarters city of Heytea. NAYUKI has surpassed Beijing, Hangzhou, Chengdu, and other cities in the number of stores in Wuhan, making it the highest-grossing tea beverage brand in Wuhan's retail sector. It is reported that NAYUKI will speed up its store openings in Wuhan this year, and by the end of the year, the number of stores in Wuhan is expected to exceed 200.
Image | NAYUKI Han Street Store
By Cultural Heritage
Wuhan possesses rich cultural heritage, and Wuhan residents have a high acceptance of Tea culture and enjoy trying new things, which provides a foundation for brands to explore innovations in tea beverage products.
According to the “Report on the Dietary Consumption of Generation Z,” in addition to basic functional needs such as quenching thirst and satisfying hunger, Generation Z (individuals born between 1995 and 2010) has developed more emotional needs, such as rewarding oneself, relieving stress, and socializing, which have become internal motivations for coffee and tea beverage consumption for many members