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Today (July 22, 2024), the Great Heat solar term has arrived, and most parts of the country have entered the hottest period of the year. Under the scorching heat, the new tea beverage market is also heating up. In recent years, the scale of my country's new tea beverage industry has continued to expand, and the expansion of major brands has accelerated. The entire track has "rolled" out of the sky.

Why are new tea brands collectively reducing their prices this summer? What new tricks do new tea drinks that play the "health card" have? After "sweeping" the county, "sweeping" overseas, where will the next battlefield for new tea drinks be? This issue of "Twenty-four Solar Terms Talking about Finance" will show you.

01 The rapid development of new tea drinks

Are we returning to the “10 yuan era”?

I don't know when, new tea drinks have gradually integrated into our daily lives and become a mainstream product consumed by young people. In recent years, the scale of my country's new tea drink market has continued to expand. According to iMedia Consulting data, it is estimated that by 2025, the scale of China's new tea drink market will expand to 374.93 billion yuan. The track continues to be hot, and new tea drink stores are blooming everywhere. The "2023 New Tea Drink Research Report" released by the China Chain Store Association and Meituan shows that as of August 31, 2023, the total number of new tea drink stores in operation will be about 515,000, an increase of 378,000 from the end of 2020, an increase of more than 36%.

With the surge in the number of stores, new tea brands are moving towards the "10,000-store era".Data from Zhaimen Canyan shows that as of July 18, 2024, Mixue Bingcheng is far ahead with over 30,000 stores. The three brands of Guming, Cha Baidao, and Shanghai Auntie follow closely behind with more than 8,000 stores each, vying to join the "10,000 stores" team.

While the leading brands are expanding their territory, new brands are constantly emerging, which makes the competition in the new tea beverage market increasingly fierce and price wars are constantly staged. Recently, many leading brands such as Heytea, Shuyi Shaoxiancao, Guming, Cha Baidao, and Mixue Bingcheng have lowered prices by adjusting menus and issuing coupons, and are fighting for the "10 yuan price range". According to Hongcan Big Data, from 2020 to 2023, the proportion of new tea beverage brands with consumption below 10 yuan will increase from 7.1% to 29.6%, while the proportion of more than 20 yuan will decrease from 32.7% to 3.6%.The once controversial "30 yuan milk tea era" seems to be a thing of the past。

02 The trend of “punk health care” is strong

New tea drinks play the "health card"

In addition to the "volume price", tearing off the "unhealthy" label has also become a consensus in the development of the new tea beverage industry. In recent years, people's health awareness has been increasing, and they are paying more attention to subtle indicators such as sugar content, calories, fat, and protein. According to iMedia Research data, among the reasons why consumers will reduce their purchases of new tea drinks in 2023, health considerations and fear of gaining weight ranked first, accounting for 49.4% and 42.2% respectively.

In order to alleviate the guilt of young people drinking milk tea, new tea brands have played the "health card": Transparency of calories and ingredients, reduction of sugar content, upgrade of base milk...

In addition, with the rise of the "punk health" trend,Chinese herbal tea that is "more suitable for Chinese babies' constitution" has become a new favorite among young people, health tea shops are welcoming a wave of openings. In recent years, a number of new tea brands focusing on herbal health have been launched, such as Chunfeng, Hetianshuipu, Qingnan Wuweicha, etc. Beijing Tongrentang, North China Pharmaceutical, Zhang Zhongjing Pharmacy, Shanghai Tonghanchuntang and other Chinese medicine brands have also entered the new tea industry, integrating the concept of "medicine and food have the same origin" into tea drinks, and launching various "Chinese medicine milk tea".

03 After the county town was “rolled”, it was “rolled” overseas

Where is the next battlefield for new tea drinks?

While many new tea brands continue to make efforts in terms of price and quality, they are also actively exploring room for growth.As competition for new tea drinks in big cities intensifies, the "downstream market" has become a battleground for brands. Since the beginning of this year, Mixue Bingcheng, Chabaidao, Guming, and Shanghai Auntie have successively updated or released their prospectuses, and "downstream market" has become a frequently mentioned keyword.

Nowadays, the streets of many county towns are already crowded with new tea shops of major brands, and this phenomenon is not accidental. According to data from Zhaimen Canyan, the top six new tea brands in the country (Mixue Bingcheng, Guming, Cha Baidao, Shanghai Auntie, Tianlala, Shuyi Shaoxiancao) have more than 40% of their stores in third-tier and lower cities. It is worth noting that Mixue Bingcheng, which focuses on the sinking market, has about 57% of its stores in third-tier and lower cities, while Tianlala has more than 80%, which is more "ruthless" than Mixue Bingcheng.

at the same time,Many new tea brands are trying to go abroad and seek new growth points overseas.The Southeast Asian market has become the first destination for most brands to go global due to its unique geographical, cultural and economic characteristics. However, despite the huge potential of the Southeast Asian market, due to factors such as the uncertainty of cross-border logistics and limited local production capacity, brands will inevitably face huge challenges in supply chain management during the process of "going global".

Tea originated in China and is popular all over the world. In this wave of going overseas, new tea brands not only bring high-quality and affordable Chinese new tea products to overseas consumers, but also carry forward and spread my country's long-standing tea culture. The "2022 Tea Beverage Category Report" released by Meituan Food and Kamen shows that by 2025, the total size of the global tea beverage market is expected to reach US$318.56 billion. The overseas expansion of new tea drinks is both an opportunity and a challenge. After opening up the market, how to build a more complete supply chain, how to seek ways to reduce costs, increase efficiency and optimize management while integrating local tastes and culture, these will be new issues facing new tea brands.

Produced by | 21st Century Business Herald, Southern Finance Media Group

Planning | Creative Interactive Center

Copywriter | Cheng Di Intern Xu Hanyi

Design | Lee Ji-li and Wang Bing

Proofreading | Jiang Yun and Huang Zhiming