by LI Ye

At this year's Shanghai International Coffee Culture Festival, an annual industry and consumer event, a section stood out from previous editions. Instead of selling beans or drinks, dozens of exhibitors showcased the tools behind the cup — grinders, machines and roasting equipment.

One exhibitor, LHOPAN, set up its booth against the backdrop of Lujiazui's skyline, promoting a home-use grinder priced at just 168 yuan. Staff pitched the product to passersby, including a coffee enthusiast who said they drank "whatever tastes good" and paused to learn more.

The festival is shifting beyond a marketplace for drinks, as equipment moves out of cafés and into everyday use, reshaping the coffee supply chain.

A report released on April 30 showed China's coffee market reached 354.9 billion yuan in 2025, up 13.3% year on year. Shanghai alone now has 10,336 coffee shops, surpassing 10,000, with growth extending beyond storefronts to equipment, supply chains and services.

Many distributors, agents and service providers are based in Shanghai, using it as a gateway to the national market. Its mix of early high-end hotels and Western restaurants, global chains, and a fast-growing base of specialty cafés has created layered demand.

In the 1990s, a fully automatic commercial coffee machine could cost around 100,000 yuan — affordable only to upscale hotels. Machines were often used for display rather than actual brewing, as few consumers were familiar with coffee.

The entry of global chains brought espresso-based drinks and standardized equipment, helping shape consumer expectations.

The shift was driven less by global chains than by the rise of domestic chains and independent specialty cafés. As boutique cafés and roasting studios expanded, machines shifted from standardized commercial use to a mix of automatic and semi-automatic models, catering to both efficiency and customization.

The customer base widened rapidly. In the 1990s, demand came mainly from global hotel chains and Western restaurants. Between 2010 and 2018, independent cafés surged. Since 2019, new buyers have included convenience stores, supermarkets, campuses, tea chains and bakeries.

Premium imported machines were once limited to top global chains. Today, they are increasingly used by domestic coffee brands, high-end tea and bakery chains, and transport hubs such as airports and rail stations.

As the market expands, equipment is also moving into homes. Previously, consumption relied on instant or capsule coffee, with professional machines seen as too complex.

Festivals and exhibitions have brought machines and tools directly in front of consumers, helping turn them into everyday purchases for homes and offices.

Organizers said upstream players are now more active, with equipment, accessories and raw materials accounting for about 60% of exhibits — a shift from "drinking a cup" to "building a full chain."

Shanghai's large consumer base provides dense use cases, while its network of distributors and service providers extends that reach nationwide.

As China's coffee shop sector continues to expand, Shanghai has also become a key observation point for equipment makers adjusting their strategies.

Another shift is the rise of domestic brands. At the festival, local manufacturers targeted the mass market with lower-priced products. Industry players say imported mid-range machines once dominated, but domestic equipment is catching up in stability, functionality and service.

High-end segments are still led by imports, but competition is intensifying, with more products tailored to Chinese usage scenarios.

Back at the LHOPAN booth, the customer who paused to learn more ended up making a purchase — a small but telling shift in consumption.

Shanghai's coffee boom is no longer just about cafés — but the industry behind each cup.