Starbucks sells majority stake in China business as local competitors eat into market share
Starbucks’ China market share crisis leads to £3bn sale
- Starbucks is selling up to 60 per cent of its China operations to private investment firm Boyu Capital in a deal valued at over £3 billion.
- The American coffee giant will continue to own and operate its stores in China, licensing its brand and intellectual property to the new firm.
- The move follows a sharp decline in Starbucks' market share in China, falling to 14 per cent in 2024 from 34 per cent in 2019.
- The market share reduction is largely due to fierce competition from local coffee chains offering cheaper products and increased price sensitivity among Chinese consumers.
- The deal, expected to be completed in early 2026, aims to leverage Boyu's knowledge of the Chinese market alongside Starbucks' brand strength.