Marketing Team
September 15, 2026
Explore China’s freshly made tea beverage market, key trends, competitive dynamics, and growth opportunities shaping the next phase of the milk tea industry.
China’s freshly made tea beverage sector is moving beyond store-count expansion into a more demanding phase of competition built on operating efficiency, product quality, and brand relevance. iiMedia Research estimates China’s new-style tea beverage market at RMB 354.72 billion in 2024, while a separate study estimates freshly made tea drinks at RMB 285.6 billion. The figures use different market definitions, but point to the same conclusion: the category is still growing, while profitable growth increasingly depends on execution. iiMedia Research Frost & Sullivan / China Tea Marketing Association
Freshly made tea drinks remain one of the fastest-growing parts of China’s tea market. Frost & Sullivan estimates a 23.1% CAGR for 2020–2024 and projects an 11.1% CAGR for 2024–2029. The market is still expanding, but the growth engine is changing—from opening more stores to improving supply chains, digital membership, repeat purchase, and site-level productivity.
Market-size figures should be compared carefully. Some reports measure the broad new-style tea beverage market; others measure retail sales of freshly made drinks only; still others include food and non-tea sales at tea stores. Brands should align definitions before using any market benchmark for planning.
Lower-sugar formulas, lighter dairy options, real tea, and ingredient transparency are shifting from differentiators to basic expectations. The next opportunity lies in functional positioning: botanicals, grains, fruit-and-vegetable ingredients, and modern interpretations of traditional wellness.
Value chains win through standardisation, franchising, and supply-chain scale. Mid- and premium-tier brands compete with tea quality, fresh ingredients, store experience, and cultural storytelling. Consumers are not simply trading down; they seek affordable everyday choices and occasional premium treats in different situations.
Viral launches can still attract attention, but their life cycles are short. More durable innovation comes from tea bases, seasonal ingredients, regional flavours, and a strong core menu. Mintel argues that tea beverages should evolve from being seen merely as drinks toward an everyday, wellness-oriented choice rooted in tea flavour and tea culture. Mintel’s 2025 China Tea Drinks Market Report
Mini-program ordering, member segmentation, delivery operations, and social content now form one consumer journey. Stores create the experience; digital systems identify customers, encourage repeat purchase, test products, and sharpen local operations.
Southeast Asia remains a major destination for Chinese beverage brands. Winning abroad requires more than exporting a Chinese store model: local taste preferences, pricing, supply chains, and compliance matter as much as brand recognition. Associated Press coverage of Chinese tea brands in Southeast Asia
The category is divided across several strategic models. Value-led chains capture high-frequency demand; mid-market brands focus on regional density and franchise efficiency; premium brands build equity through product quality, aesthetics, and cultural meaning. Tomorrow’s leaders may not have the most SKUs—they will have the clearest value proposition, the most reliable product system, and the strongest repeat-purchase engine.
Milk tea is not entering a simple decline; it is entering a more sophisticated growth phase. Wellness, supply-chain discipline, digital retention, and meaningful differentiation will determine the category’s next winners.
