China has a tea habit – and it means big business
- China’s ready-to-drink tea market was worth US$11.7 billion by the end of 2015
From delicate kung fu tea ceremonies to trendy cheese-topped bubble milk tea, China boasts a vibrant tea drinking culture that has also translated into big business opportunities. According to the China Tea Marketing Association, as many as 500 million people were drinking tea-related beverages in 2017 – and most of the new converts were young people.
The market for ready-to-drink tea products reported double-digit growth annually from 2006 to 2011, and continues to grow as more people shift to healthy, natural drinks, according to market research company Mintel Group. It was worth 81 billion yuan (US$11.7 billion) by the end of 2015, according to market research company GroupM Knowledge Center.
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Shares in Hong Kong soy milk and lemon tea maker Vitasoy, for instance, soared by about 50 per cent in 2018, riding the fast expansion of its mainland China business.
But Vitasoy is hardly a big fish in the highly competitive red ocean that is China’s tea market, where drink makers are racing to develop new tea drinks and more exciting flavours such as sparkling tea.
One of the most successful tea brands in China is Master Kong Iced Black Tea. A household name and a leading player, Master Kong produces a wide range of instant noodle and drink products.
Its iconic iced black tea became a national hit after its launch in 1996. Together with its Taiwanese counterpart, Uni-President, Master Kong helped iced tea become one of the most popular drinks categories in mainland China over the next decade.