Introduction:Once a hot topic for incorporating fruit into coffee, specialty fruit coffee shops are now experiencing a major contraction. A once well-known brand with over 700 stores has seen its closure rate approach 80% in just a few years, leaving only a little over 100 still in operation. This article delves into the reasons behind the rise and fall of the fruit coffee market, explores the challenges it faces in fierce market competition, and gives you an insight into the true current state and possible future of this niche segment.
Fruit coffee was once a market darling, captivating many consumers with its unique flavor combinations of creative fruits and coffee. However, this wave of enthusiasm is gradually receding, and many once wildly popular fruit coffee brands are now facing the dilemma of widespread store closures.
Take a certain well-known fruit coffee brand as an example. Established in 2021, it quickly gained popularity on social media platforms with novel combinations such as durian latte and banana coffee. Soon after its founding, it began a nationwide expansion, peaking at over 725 stores across multiple cities including Guangdong, Beijing, Shanghai, and Hefei. According to statistics, in 2022 alone, the brand opened more than 500 new stores, averaging over 1.3 new stores per day.
But the good times didn’t last. Starting from the second half of 2023, news of store closures began to emerge. Although initial closure figures were not officially confirmed, footage from equipment recyclers showed that a large number of the brand’s stores had successively removed equipment and ceased operations. The brand’s founder also admitted on social media that within the past six months, the number of stores plummeted from 725 to just over 300—a nearly 60% drop—and that he had sold two sports cars due to losses.
As of May 2024, the brand’s mini-program shows that only just over 140 stores nationwide remain operational for normal orders. In other words, in less than a year, its total number of stores has plummeted by over 80%, a staggering contraction.
And it’s not just this one brand—other fruit coffee specialty shops in the market are in a similar situation. Whether large chains or small local brands, most are facing a sharp reduction in stores, forced transformations, or even complete market exits.
The popularity of fruit coffee can actually be traced back to around 2020, when various seasonal fruits such as durian, coconut, green grapes, strawberries, and even more niche ones like yuzu, guava, and avocado were all tried in coffee, creating a variety of creative combinations that became hot topics on social media. With the push of capital, many brands invested heavily in developing new flavors, attempting to break into the market with the concept of “fruit + coffee.”
However, as coffee market competition has become increasingly fierce, large chain brands have not only accelerated their store openings but have also continuously refreshed their product lines. Beyond fruit coffee, they have introduced a variety of new “dessert-like” drinks that blend new elements and have a gentler tone, greatly enriching consumer choices. In contrast, specialty stores that rely solely on fruit as their main selling point not only have limited brand recognition but also struggle to balance product differentiation with operational costs, gradually losing their competitive edge in the market.
Industry insiders point out that the fruit coffee category has inherent limitations. Fruit costs are volatile and highly seasonal, and some fruit flavors are not compatible with coffee, often leading to inconsistent customer experiences. Additionally, consumers’ expectations for coffee quality are steadily rising. If a brand cannot balance coffee bean selection and brewing techniques, relying solely on fruit gimmicks makes it difficult to maintain long-term customer loyalty.
Faced with market challenges, some fruit coffee brands have attempted to adjust their product structures—for example, by adding more classic coffee items or launching pure coffee series without fruit interference—to expand their customer base. Some brands have chosen to completely transform, moving away from their original fruit coffee positioning to explore new directions.
Looking at the overall market, the journey of fruit coffee—from a momentary craze to its current contraction—reflects how emerging beverage segments can rapidly rise and then be weeded out under the impetus of capital. For entrepreneurs looking to enter this field, in addition to creativity and buzzworthiness, they must also be well-prepared in terms of quality control, cost management, and brand management capabilities to stand firm in the fiercely competitive coffee market.
The above content is compiled by CoffeeHunters, a coffee news website.
