International coffee chain brands are rapidly expanding in the Chinese market against the background of a retail industry downturn.

Howard Schultz, founder and CEO of Starbucks (NASDAQ: SBUC) said earlier this year that though Chinese economic growth has slowed, he is still confident in a stable market and that by 2015, 1500 Starbucks outlets will be open in mainland China.

Costa, from Italy, is trying to get a foothold in shopping malls by cooperating with Beijing Huanglian Group (600361.SH). Costa owns about 200 outlets in China now, and plans to take one-third of the share of the Chinese coffee market by opening 2500 outlets by 2018. Paul Smith, CEO of Costa Asia, has even said he will "resign if he cannot beat Starbucks in China".

Pacific Coffee, a subsidiary of China Resources Enterprise. Ltd (00291.HK), which has 100 outlets in mainland China is rapidly expanding to second tier cities with help from the logistical advantages of China Resource.

Fast food giant McDonald's has even begun to add coffee corners at locations in China, trying to exploit new revenue streams by coffee and bakery goods sold at separate counters within their restaurants.

Experience from U.S and European history reveals that the booms of the coffee industry come with the economic downturn, said Li Xianglu, President of Aix Arôme Coffee (China). As coffee stores provide a platform for social networking, especially when the economy slumps, people can work and meet in coffee shops, which may provide new commercial opportunities.

Moreover, in modern society, the constant flows of population worldwide bring great opportunities to coffee chain brands such as Starbucks, as global brand awareness allows the company to save on advertising costs, said Chen Zhiwu, professor at Yell University.

China consumes about 70 billion yuan worth of coffee a year and it is expected to reach 1 trillion yuan in 10 years, and 2 to 3 trillion yuan by 2030. It is predicted that the mature Chinese coffee consumption market will be worth 3 to 4 billion yuan, reported China Daily.