What you need to know

Even prior to the COVID-19 outbreak, the fresh tea drinks market (ie tea houses) was already highly saturated especially in upper tier cities. The unexpected outbreak has negatively impacted the market in 2020, resulting in a value sales decline. However players are still optimistic about the long-term growth as reflected in the increase in outlet numbers in 2020.

Mintel thinks there are still growth opportunities despite a crowded and highly competitive market. Product innovation, the convergence of foodservice and retailing and lower tier cities will be the keys to future market success.

Key issues covered in this Report

  • What’s the market landscape of the tea house business?

  • How has the COVID-19 outbreak impacted the market?

  • How to seek future opportunities from the highly-saturated tea drinks market?

  • As tea drink consumers have rather sophisticated and mature consumption and spending habits, what can players do to encourage more spending?

  • What are the possible product innovation directions for brands to be aware of?

Report scope

Tea houses in this Report are defined as foodservice operators where tea drinks are the primary sales item or the main selling point to attract consumers. A great variety of tea drinks, for example milk tea, fruit tea, pure tea, etc, is included. However, traditional tea houses and morning tea houses are excluded.

Mintel defines those who have purchased tea drinks at least several times a week, including once a day or more and several times a week, in the last six months as frequent drinkers.

Mintel divides the spending structure into three ranges, below RMB16, RMB16-30 and over RMB30, and classifies consumers as low spenders, medium spenders and high spenders respectively.

Mintel defines those who have consumed tea drinks at more than six occasions in the last six months as well-penetrated consumers.

Back to top