Walking through the streets of Shanghai, it’s impossible to miss the city’s vibrant café culture. In many neighborhoods, it seems that every turn introduces you to yet another new coffee shop. Shanghai’s financial district is home to such an abundance of cafes that the local government claims it boasts the highest number of coffee shops of any city in the world.
While Shanghai’s café scene has been evolving for years, it has seen a significant surge in recent times, particularly with the post-Covid revival. The city’s residents have embraced outdoor socializing, flocking to cafés as places to meet friends and family. However, the rapid expansion has led to fierce competition, and many café owners are skeptical about the long-term survival of all these new establishments.
According to Shanghai officials, there are currently “more than 8,000 cafes” in the city. A report from the Shanghai International Coffee Culture Festival noted that by the end of 2023, there were 9,553 coffee shops. What distinguishes Shanghai from other Chinese cities is not just the sheer number of cafés, but also the prevalence of independent, niche outlets. Unlike other cities dominated by large coffee chains like Starbucks and Luckin Coffee, Shanghai’s coffee boom is characterized by a proliferation of unique, independently-owned spots, such as Nomad Coffee Roasters and Panoramic Café.
Wang Chang, the owner of Nomad Coffee Roasters, describes her deep passion for coffee as the driving force behind her venture. Despite her enthusiasm, she acknowledges the challenges: “The investment versus return is awful. Expensive machines and elaborate décor demand significant capital, and the financial rewards are modest compared to other industries.”
In this competitive market, a distinct and appealing atmosphere is crucial for attracting customers. Nomad Coffee’s minimalist design and limited menu are part of its strategy to create a welcoming and unique experience. Cafés in Shanghai have become social hubs where young people gather to see and be seen, reflecting the city’s long-standing cosmopolitan spirit.
One local resident notes with pride, “Shanghai has always been an international trading city, and we’ve been drinking coffee for a long time. Smaller cities will gradually see a rise in diverse café options too.” Another adds, “I drink as many cups of coffee as I like every day.”
As the number of coffee shops grows, so does the appetite for innovation. For example, Yuan Xiao, owner of the Panoramic Café, imports his beans from Japan and blends various styles, despite the high costs. He has resisted raising prices for his customers despite increasing wholesale costs driven by global conflicts and supply shortages.
The trend extends to unique cafés like AC Café, which employs deaf staff and provides sign language interpretation, and another that serves coffee through a hole in the wall from staff in costumes. Along one street, 18 cafés are packed into just a few hundred meters, all bustling with patrons.
Many café owners hope this trend isn’t just a fleeting fad. China’s coffee market, valued at over 260 billion yuan (US$35 billion) last year, is projected to grow by an additional 100 billion yuan (US$13 billion). The market for branded coffee shops alone expanded by 58% last year, according to the World Coffee Portal.
With high overhead costs, some Shanghai cafés are adapting by transforming into bars in the evening to maximize space utilization. Gang Xi, owner of the 88 Café and Bar, acknowledges the tight margins but remains optimistic about the future. “If the Chinese economy recovers to pre-pandemic levels, everyone will benefit,” he says, gazing at the bustling café scene along the dazzling Shanghai skyline.
Despite economic challenges, the city’s café culture continues to thrive, symbolizing a resilient and dynamic facet of Shanghai’s urban life.
Shanghai Vibrant coffee scene
Shanghai’s specialty coffee scene has rapidly grown into a vibrant and dynamic community, driven by the rise of independent roasters and cafés that have brought new flavors, brewing methods, and a unique cultural vibe to the city. In fact, Shanghai’s coffee culture is defined by a thriving ecosystem of niche, independently-owned coffee shops that cater to the city’s sophisticated and diverse tastes.
Independent roasters in Shanghai are at the heart of this movement, offering a carefully curated selection of single-origin beans sourced from around the world. These cafés often emphasize craftsmanship, focusing on quality, sustainability, and the stories behind the beans. Coffee is no longer just a quick pick-me-up but a sensory experience—one where the origin of the bean, the roasting process, and the brewing method all play integral roles. Many of these roasters pride themselves on their ability to source high-quality beans directly from farms, bringing a new level of transparency and authenticity to the coffee scene.
The love affair with specialty coffee is especially strong among millennials and Gen Z in Shanghai. For these younger generations, coffee has become more than just a beverage; it’s a lifestyle and a form of self-expression. Specialty coffee shops are social hubs where people gather not just for the drink, but for the aesthetic, the ambiance, and the cultural connection. These cafés often feature minimalist or modern designs, reflecting the latest trends in fashion and interior décor, making them perfect spots for social media photos and content creation.
For millennials and Gen Z, coffee drinking is tied to the desire for new experiences and a break from the ordinary. Specialty coffee shops in Shanghai provide a space where they can indulge in creativity, whether through trying experimental brewing techniques like pour-overs, siphon brewing, or cold brews, or sampling innovative flavors and blends. Many young people in Shanghai appreciate the artisanal nature of these cafés, seeing them as part of a global coffee culture that values quality and individuality over mass production.
This cultural shift is deeply rooted in Shanghai’s cosmopolitan history, as the city has long been a gateway for international influences. Today’s young coffee drinkers see their affinity for specialty coffee as part of Shanghai’s global, outward-looking identity. They are not only patrons of these independent roasters and cafés but also active participants in shaping a local coffee culture that feels distinctly Shanghainese yet globally connected.
In short, the specialty coffee scene in Shanghai has become an essential part of modern life for the city’s millennials and Gen Z, blending craftsmanship, culture, and community in a way that has made it much more than a fleeting trend. It represents a new generation’s approach to enjoying coffee—one that values quality, experimentation, and a deeper connection to the global coffee movement.
