Starbucks Target Market | Business Strategy Hub

Company: Starbucks Corporation  
CEO: Brian Niccol
Year founded: 1971
Headquarter: Starbucks Center, Seattle, Washington, USA
Number of Employees : 346,000
Type: Public
Ticker Symbol: SBUX
Market Cap (Jun 2025): $103.98 Billion
Annual Revenue (2024): $36.18 Billion
Profit | Net Income (2024): $3.76 Billion

Products & Services: Coffee | Espresso-based Drinks | Frappuccinos | Starbucks Refreshers | Hot & Iced Tea | Food & Snacks | Coffee Brewing Equipment & Drinkware | Starbucks K-Cup Pods | At-Home Coffee Brewing Products | In-store Dining | Loyalty Program & Gift Cards

Competitors: Dunkin’ | McDonald’s McCafé | Costa Coffee | Tim Hortons | Peet’s Coffee | Yum China | Caribou Coffee | Dutch Bros | Lavazza | Folgers | Scooter’s Coffee | Chipotle | Wendy’s | Burger King

Fun Fact:

The name “Starbucks” was inspired by a character in the novel Moby Dick. 

Starbucks is a premier roaster and the world’s leading specialty coffee retailer. The company was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker to deliver the best coffee beans to the market. In 2024, Starbucks generated $36.18 billion in annual revenue, up from $35.98 billion in 2023. Its net income was $3.761 billion. The global coffeehouse chain has posted a year-over-year increase in sales over the past decade, except for the decline in 2020. But who is Starbucks’ target market? [1]

To understand Starbucks’ customer base and secret to success, here is an in-depth analysis of its target market:

Starbucks’ Target Market Overview

Starbucks’ target audience is consumers seeking hot and cold beverages, snacks, and baked goods. The chain serves coffee, espresso, caffe latte, full and loose-leaf teas, Frappuccinos, juices, pastries, cakes, sandwiches, salads, chocolate, chips, and yogurt parfaits. Customers can enjoy by selecting in-store dining or grab-and-go options. In 2024, Starbucks operated 40,199 stores worldwide. This figure includes all company-owned segments such as Siren Retail and Starbucks Coffee Company. Starbucks units have grown yearly over the past twenty years, except in 2009 during the global financial crisis. [2]

Starbucks contributed to the rise of the second wave of coffee culture. It started in Seattle as a coffee bean wholesaler and evolved into a global chain of coffeehouses and roastery reserves. The company diversified its offerings beyond coffee beans, expanding its target market. In 2024, the beverages segment was Starbucks’ top revenue generator. This category generated $21.88 billion. Starbucks’ global revenue from food products was $6.75 billion. [3]

Starbucks segments its target market to address the unique needs and tastes of customers. Here is our analysis of Starbucks’ demographic, psychographic, geographic, behavioral, and technographic segmentation: 

Starbucks’ Target Market: Demographic Segmentation

Starbucks’ target market includes men and women aged 22 to 60. It refines its offerings and marketing messages to appeal to professionals, students, and families. This strategy extends to Starbucks’ partners. For example, Target introduced free curbside delivery of Starbucks orders in Aug 2023 to attract the younger generations who pre-order using mobile devices. The service aligns with Starbucks’ Reinvention Plan, an initiative to grow revenues by enhancing the customer experience across retail touchpoints. “More than half our US customer base is Gen Z and Millennials, reflecting relevancy and brand love across generational cohorts and trends we see with diverse customer cohorts,” said Sara Trilling, Executive VP and President of Starbucks North America. [4]

Starbucks primarily targets young adults and middle-aged consumers between 25 and 40. This demographic includes young adults and college students seeking places to study and socialize. In Jan 2025, Starbucks ended its open-door policy. The company now requires customers to purchase an item on its menu to use its restrooms and the seating area. It doesn’t want to be America’s public bathroom anymore. However, the new rules only apply to North America. The brand also banned alcohol and vaping outside its stores, panhandling, and discrimination. “These changes help us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” said a Starbucks spokesperson, “By setting clear expectations for behavior and use of our spaces, we can create a better environment for everyone.” [5]

Starbucks opened its restrooms and cafes to the public in 2018, strengthening its position as a “third place” between work and home. The company strives to attract more consumers by upgrading its coffeehouses and standardizing the Starbucks in-store experience. This back-to-basics comeback plan can help the brand expand its target market. For example, Starbucks plans to make its coffee shops cozier to attract customers and encourage them to spend more time in-store. The upgrade ensures Starbucks cafés feel premium, warm, and inviting. “The third place is our heritage,” said CEO Brian Niccol, “It’s needed now more than ever, and we’re reclaiming it.” [6]

Starbucks appeals to both genders. However, its in-store atmosphere and menu options attract slightly more females than males. Young female students tend to visit Starbucks more often than older women. The brand refines its offerings to retain its target audience or increase its market share. In Feb 2025, Starbucks cut 30% of its menu to eliminate complex and less popular items. The brand tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots. It also reintroduced condiment bars and added personal touches written by baristas on paper cups. [7]

Another component of Starbucks’ demographic segmentation is income. The brand primarily targets middle- to high-income consumers by establishing its stores in affluent neighborhoods. These consumers earn around $90,000 so they can afford its premium-priced beverages and snacks. Starbucks’ average price point is higher than many competitors. The brand attracts affluent and well-educated consumers who appreciate stores with modern, community-oriented environments. For example, Starbucks opened a new store in Bridgehampton, New York, in 2025. The coffee shop has comfortable seats and espresso bars. The company will apply this model to other Starbucks stores. [8]

Starbucks’ Target Market: Psychographic Segmentation

Starbucks’ target consumers view coffee as an experience rather than a commodity. The company taps into this psychological trait with emotional branding and marketing messages. For example, Starbucks’ mission statement is: “To be the premier purveyor of the finest coffee in the world, inspiring and nurturing the human spirit – one person, one cup, and one neighborhood at a time.” This statement appeals to consumers seeking to be inspired and nurture a better world. [9] 

Starbucks’ well-educated consumers acknowledge the climate and environmental pollution threats facing communities. They prioritize the sustainability and ethical implications of their purchases. Starbucks is committed to ethically sourcing and roasting high-quality coffee. The company set ambitious sustainability goals to protect the environment and appeal to its target audience. For example, Starbucks aims to cut its climate, water, and waste footprint by 50%by 2030 compared to a 2019 baseline. It reported a 13% increase in waste sent to landfills and a 0.6% decrease in scope 1 emissions in 2023. The coffee chain also aims to make customer-facing packaging 100% reusable, recyclable or compostable by 2030. [10]

Starbucks targets fun-loving consumers seeking social interaction and a sense of belonging. This audience wants to feel part of an inclusive community. The company aligns its branding and marketing messages with these demands to appeal to the target market. For example, Starbucks’ core values are craft, courage, results, belonging, and joy. The coffee chain states, “We actively listen and connect with warmth and transparency, appreciate everyone for who they are, take pride in our work and have fun while doing it, and create great vibes to bring the best out of others.” Starbucks also appeals to social consumers by creating store atmospheres where friends and family can gather and share their interests. These community spaces foster social interaction and a sense of belonging. [11]

Starbucks’ Target Market: Geographic Segmentation

Starbucks targets a global market. The coffeehouse chain operates in 80 countries. In 2024, Starbucks operated 40,199 stores worldwide. It had 21,775 locations in international markets and 18,424 in North America. The company customizes its regional offerings to local tastes and preferences. [12]

Starbucks serves consumers on six continents. The company has a strong market presence in the US and China. As of Dec 2024, Starbucks had 16,941 stores in the US and 7,596 locations in China. The two countries accounted for 61% of the company’s global portfolio. [13]

Starbucks’ primary market is the US. The company operates 16,482 stores across the US and its territories, including 3,115 locations in California. It targets consumers in urban areas. As of 2025, New York City had the most Starbucks stores with 191 locations. Chicago ranked second with 186 stores, followed by Las Vegas at 179, Houston at 161, Los Angeles at 151, San Diego at 135, Phoenix at 119, Dallas at 99, Seattle at 96, Miami at 88, San Antonio at 84, Portland at 81, San Jose at 80, Charlotte at 76, Sacramento at 75, Denver at 74, and Tucson at 72. [14]

Although Starbucks has a global target audience, it still relies heavily on North America. The company generates most of its revenue in the US. In 2024, Starbucks amassed $26.71 billion in the US. This figure represents 73.83% of Starbucks’ annual revenue. The coffee chain generated $3.01 billion in China and $6.46 billion in international markets. [15]

Starbucks is the world’s biggest coffee chain. The company strives to expand its customer base by tapping into emerging markets. In Nov 2023, Starbucks launched its Triple Shot Reinvention roadmap to accelerate its global expansion. It plans to double its Starbucks Rewards Members within five years and increase its stores to 55,000 worldwide by 2030. For example, the company had 390 coffeehouses across 54 Indian cities. It partnered with Tata Consumer Products Limited to increase its store count in India to 1,000 by 2028. [16]

Starbucks tailors its offerings to align with local tastes and preferences. The company opened its $209 million Coffee Innovation Park in Kunshan near Shanghai in 2023. This 80,000-square-metre roasting plant can supply all Starbucks stores in China. However, Starbucks has lost market share to lower-priced Chinese rivals, including Luckin and Cotti. The company announced its first-ever price drop in China in Jun 2024. According to insiders, Starbucks plans to sell its Chinese business. It held preliminary talks with potential buyers. [17]

Starbucks’ Target Market: Behavioral Segmentation

Starbucks has a loyal customer base. The company has nurtured a cult-like following among coffee drinkers. According to a 2024 Statista survey, 27% of Starbucks’ US customers are likely to revisit the coffeehouse. 31% of US restaurant chain customers use Starbucks and 31% like the company. Starbucks has 94% brand awareness in the US. 24% of US restaurant chain customers had noticed Starbucks in the media, social media, or advertising three months before the Statista survey. [18]

Starbucks has one of the industry’s most successful customer loyalty programs. The company launched Starbucks Rewards to boost brand loyalty. In 2024, Starbucks Rewards had 34.3 million active members. These loyalty members spend three times more than non-members and contribute 41% of Starbucks’s US sales. About 21% of Starbucks customers return within three days and 10% visit daily. The brand scored 78 on the American Customer Satisfaction Index (ACSI) in 2022. It had a customer retention rate of 44% compared to the industry’s average of 25%. [19]

Starbucks’ target consumers seek specific benefits from the coffeehouse chain. They visit coffee shops to enjoy their favorite drinks and socialize. In 2023, Starbucks was the world’s top-selling food and drink services company. It is the second most valuable fast-food brand globally after McDonald’s. [20]

Starbucks satisfies its customers’ needs by providing high-quality drinks and fostering connections in its stores. It offers some of the world’s finest fresh-roasted whole-bean coffees. In 1983, Starbucks’ former CEO, Howard Schultz, visited Italy and became captivated by Italian coffee bars and the romance of the coffee experience. He brought the Italian coffeehouse tradition to the US and transformed Starbucks’ shops into community spaces – the “third place” between work and home. The company has retained this identity ever since. For example, Starbucks hosts its Leadership Experience (LE) event annually to build connections with partners and customers. [21]

Starbucks’ Target Market: Technographic Segmentation

Starbucks’ target consumers are tech-savvy and digitally mature. They use mobile apps to enhance their shopping experience. As of Dec 2023, 31% of transactions at Starbucks US stores were made via the company’s app. This figure was 27% in 2022 and 25% in 2021. Over 40% of Starbucks’ 7,000 US-licensed stores have mobile ordering capabilities. The company is improving the accuracy of wait times on the app to help customers personalize orders to their dietary needs. [22]

 References & more information

1. Statista Research Department (2025, Jun 11). Starbucks revenue from 2003 to 2024. Statista
2. SRD (2024, Dec 10). Total Starbucks locations globally from 2003 to 2024. Statista
3. Statista Research Department (2025, Jun 26). Revenue distribution of Starbucks from 2009 to 2024 by product type. Statista
4. Kohan, S. (2023, Aug 12). Target Banks on Younger Consumers with Starbucks Cafe Curbside Delivery. Forbes
5. Valinsky, J. (2025, Jan 14). Starbucks has ended its ‘open-door’ policies. CNN
6. Schwarz, H. (2025, Apr 30). Starbucks is about to uplift 2,000 stores with a new design. Fast Company
7. Valinsky, J. (2025, Jan 29). Starbucks is cutting 30% of its menu. CNN
8. CNN Staff (2025, Jun 26). Starbucks wants you to sit down again. Will it work? CNN.com
9. Starbucks Corporation. About Us: Starbucks Mission. Starbucks.co.uk
10. Mirza, Z. (2024, Mar 4). Starbucks loses ground on emissions reduction and sets new 2030 sustainability goals. ESG Dive
11. Starbucks Corporation. About Us: Starbucks Values. Starbucks.co.uk
12. Statista Research Department (2024, Dec 10). Number of Starbucks stores worldwide from 2018 to 2024 by region. Statista
13. Starbucks Corporation (2024, Oct 30). Starbucks Reports Q4 and Full Fiscal Year 2024 Results. Starbucks.com
14. CAFELY Statistics (2025, Jan 10). How Many Starbucks Are There in the US? Cafely.com
15. Bull Fincher (2025, Jan 5). Starbucks Corporation’s Revenue by Region. BullFincher.com
16. Birch, K. (2024, Jan 11). Starbucks: balancing sustainability goals with rapid growth. Sustainability Magazine
17. Wu, K. (2025, Jun 24). Starbucks says it is not currently considering a full sale of its China operations. Reuters
18. Bashir, U. (2024, Nov 6). Starbucks brand profile in the United States 2024. Statista
19. Mohammad, Y. (2025, May 31). 9 Starbucks Customer Loyalty Statistics: A Must-Know in 2024. Coffee Dasher
20. Statista Research Department (2025, Jun 26). Brand value of leading global QSR brands in 2024. Statista
21. Sarah, H. (2025, Jun 9). Back to Starbucks, Back to Us. Starbucks.com
22. Soper, T. (2024, Jan 31). Q4 Active U.S. Starbucks Rewards Membership Totals 33.8 Million, Up 4% Over Prior Year. Geekwire

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