Starbucks has reduced prices on select beverages in China, responding to mounting competition from local coffee chains in an aggressive discount war sweeping the country’s beverage sector.
The U.S. coffee giant announced lower prices on some of its popular drinks, including Americanos and lattes, across stores in major Chinese cities. The price cuts aim to retain market share as domestic rivals such as Luckin Coffee and Cotti Coffee lure customers with steep discounts and promotions.
China remains Starbucks’ second-largest market, but slowing consumer spending and the rapid expansion of lower-priced alternatives have put pressure on the brand. In response, Starbucks is re-evaluating its pricing strategy to stay competitive while maintaining its premium image.
Analysts say this marks a significant shift for Starbucks, which traditionally positioned itself as an upscale offering in China. The company’s latest move suggests a willingness to adapt in one of the most competitive coffee markets globally.
The ongoing price battle reflects broader trends in China’s food and beverage sector, where affordability and convenience are increasingly driving customer loyalty.
