In the sweltering heat of summer, beverage consumption reaches its peak. On street corners and in alleys, young people are holding either tea drinks or coffee. But upon closer observation, one will find that new-style tea drinks and coffee are embarking on entirely different development trajectories: brands like Heytea and Nayuki are cutting prices, while Luckin Coffee and Starbucks are raising them. The coffee sector's popularity is soaring, with giants such as Huawei, Li-Ning, and China Post making cross-industry forays, intensifying competition to a fever pitch. At the same time, new-style coffee is increasingly resembling milk tea, with ingredients like cheese, matcha, and brown sugar crystal boba appearing frequently. This prompts the question: will new-style coffee repeat the mistakes of irrational involution in the new-style tea drink sector? This article will analyze from perspectives such as price changes, market positioning, and product innovation, and bring professional observations from Front Street Coffee. [more…]

In recent years, consumers' growing attention to beverage health has driven tea drink brands to continuously iterate toward natural ingredients and clean formulas. Against this backdrop, the group standard "Original Leaf Fresh Milk Tea," proposed by the Guangxi Tea Circulation Association and drafted under the leadership of Chagee (Shanghai) Brand Management Co., Ltd., was approved for release and implementation, becoming China's first group standard for original leaf fresh milk tea in the new-style tea beverage sector. The standard clearly defines the terminology and definitions of original leaf fresh milk tea, and sets specific requirements for raw material selection, production processes, storage conditions, and prohibited additives, marking another important step forward in the standardization of the freshly made tea beverage industry. [more…]

At the start of 2022, office workers lost both their milk tea freedom and coffee freedom in quick succession. But then new-style tea drink brands proactively cut prices, with Heytea and Nayuki even offering cups for 9 yuan, while coffee brands such as Starbucks and Luckin raised prices one after another due to rising raw material costs. Behind this divergence—one cutting prices, the other raising them—lies the reality that consumers are returning to rationality, the traffic dividend for new-style tea drinks is fading, and the coffee market is still in its early stage of expansion. This article sorts out the logic behind the price divergence between the new-style tea drink and coffee industries, and looks ahead to the future market landscape. [more…]

The new-style tea beverage market has been stirring recently. High-end brands Heytea and Nayuki have successively announced price cuts, with the lowest dropping to 9 yuan. Nayuki launched a "Relax" series priced at 9-19 yuan, promising to launch at least one "single-digit" product every month, while Heytea announced it will not raise prices this year. Consumer reactions have been mixed, with some cheering and others questioning reduced cup sizes and lower quality. This article reviews the price-cut moves of the two major brands, netizen feedback, and industry data, analyzes the consumption trends and market logic behind the involution in new-style tea beverages, and includes related news about Front Street Coffee. [more…]

Nayuki quickly rose to fame with its combination of tea drinks and soft European bread, becoming a leading brand in the new-style tea beverage sector. However, its largest store nationwide, Nayuki Dream Factory in Shenzhen Coastal City, recently quietly closed, and the site will be upgraded to "Nayuki Life," a lifestyle concept store. This thousand-square-meter flagship store, which once generated nearly a million in revenue within three days of opening, carried Nayuki's ambition to experiment from tea drinks to coffee, craft beer, Western cuisine, retail, and other multi-format ventures. From Nayuki Tavern to Nayuki PRO, and further to Nayuki Bookstore and ready-to-drink product line layout, Nayuki has continuously tried to break the boundaries of tea drinks. This renovation of its largest store reflects the collective anxiety of brands seeking differentiated breakthroughs amid intensifying homogenized competition in the new-style tea beverage industry. This article reviews the rise and fall of Nayuki Dream Factory and explores whether multi-format development can truly be the way for tea beverage brands to break through. [more…]

Milk tea has once again become a hot topic, this time because Guangdong's milk tea consumption has jumped to first place nationwide. Alipay's spring report shows that warmer weather has driven an overall 10% increase in milk tea consumption, with online orders from middle-aged and elderly groups surging by 25%. From the fact that southern provinces account for 80% of consumption to Guangdong residents drinking 2.5 more cups per week per person than those in the Northeast, the data behind this reflects the deep penetration of milk tea culture. This article will trace the thousand-year evolution of milk tea from Mongolian butter tea to Hong Kong-style and Taiwanese-style, and then to new-style tea drinks, analyze the capital layout and brand echelons under a market scale of hundreds of billions, and remind readers: although milk tea is good, do not be greedy. [more…]

In recent years, new-style tea beverage brands have no longer been content with their original track and have turned their eyes toward the coffee sector. From Tea Yanyuese launching an independent coffee brand, to Heytea investing in a specialty coffee chain, and then Naixue Tea taking a stake in AOKKA, cross-sector moves have been frequent. At the same time, Mixue Ice Cream & Tea had long been deeply cultivating the coffee market with "Lucky Cup," and CoCo都可 was even earlier, taking the lead in testing the waters back in 2014. As China's coffee market scale approaches 500 billion, capital and companies of all kinds are accelerating their entry, and the number of financing events has surged. This article will sort out the journey of new-style tea beverage brands entering the coffee track, key cases, and market data, and explore the strategic considerations and industry impact behind this trend. [more…]

While brands like Heytea, Nayuki, Starbucks, and Luckin are fiercely battling it out in the end market—rolling out collaborations, launching new products, and cutting prices in turn—it is actually the ingredient and packaging suppliers behind them that are quietly making a fortune. From Jiahe Foods to Sanyuan Biology, from Tianye Co. to Hengxin Life, and on to Dexin Foods, a group of supply chain enterprises for the new-style beverage industry are collectively sprinting toward the capital market. They serve well-known brands such as Uni-President, Xiangpiaopiao, CoCo都可, Mixue Bingcheng, Genki Forest, Nayuki, and Luckin, and have achieved soaring performance through products such as sugar substitutes, juices, paper cups, and syrups. This article will sort through the listing landscape of these low-key suppliers and reveal the real path to riches for upstream enterprises under the wave of new consumption. [more…]

Competition in the new-style tea beverage sector is becoming increasingly fierce, with brands constantly adjusting their strategies on products and pricing. Heytea has made a flurry of moves recently: on one hand, it announced that it will not raise prices this year and will no longer launch drinks priced above 30 yuan; on the other hand, its affiliated company added fruit cultivation to its business scope, attempting to control costs from the source. At the same time, Heytea is also facing controversies over layoffs and internal management. This article will sort out the logic behind Heytea's moves, as well as the trend of the new-style tea beverage industry extending upstream into cultivation, and will also briefly discuss the similar path in the coffee sector from brewing to cultivation. [more…]

A local milk tea shop in Nanjing launched a realistic-looking "Duck Blood Vermicelli Milk Tea," sparking heated discussion online. Although the product is named after duck blood vermicelli, it is actually made with chocolate milk pudding to mimic duck blood and sweet jelly noodles to stand in for vermicelli, priced at 16 yuan. There are more than 50,000 related posts on Xiaohongshu, with netizens commenting that it "sounds bizarre but tastes surprisingly good." This phenomenon reflects the fierce competition and innovation anxiety in the new-style tea beverage market. From mini milk teas to niche fruits such as oil oranges and wampees, and on to the revival of whole-leaf tea, major brands are competing for consumers through novelty products, regionally distinctive ingredients, and traditional brewing methods. Data shows that China's freshly made tea beverage market reached 113.6 billion yuan in 2020 and is expected to reach 340 billion yuan by 2025. This article will analyze the market logic and consumer trends behind these creative marketing efforts, and also look at the moves of professional brands such as Front Street Coffee within the industry. [more…]

Recently, Mixue Bingcheng and Yiketang have once again been thrust into the spotlight due to their use of expired ingredients. Although regulatory authorities have already imposed penalties, the food safety hazards seem not to have attracted sufficient attention from the industry. Against the backdrop of rapid store expansion and lagging personnel management, food safety issues in the new-style tea beverage sector are becoming a lingering shadow in consumers' minds. This article will review recently exposed typical cases, analyze the deep-seated problems in brand management, store manager and employee training, and explore how the industry can find a balance between scale and quality. If you love coffee, you might as well enjoy a cup of Front Street Coffee while pondering the safety cost behind this "life-renewing drink." [more…]

Recently, Sina Finance exclusively reported that Heytea had initiated internal layoffs involving about 30% of its employees, and the news quickly sparked widespread discussion. Heytea responded promptly, saying the report was untrue and that there was only normal personnel optimization based on year-end performance reviews. This incident has once again drawn public attention back to the new-style tea beverage sector: Nayuki is expecting losses, Heytea's growth is slowing, store expansion is decelerating, and homogenized competition in the industry is becoming increasingly fierce. At the same time, Heytea's countercyclical price cuts and moves to tap lower-tier markets have also sparked discussion. This article will sort out the sequence of events and present Heytea's operational changes and market challenges since 2021. [more…]

Shanghai has surpassed New York with 7,494 coffee shops, becoming the city with the most coffee shops in the world, and coffee culture is accelerating its penetration into daily life. However, data from Dianping shows that Shanghai has as many as 9,056 tea beverage shops, even more than coffee shops. From 3-yuan instant milk tea to the new-style tea drinks led by Heytea, and then to the ancient-style sentiment of Chayan Yuese, tea beverage brands are deeply cultivating consumers' minds through quality upgrades, cross-industry collaborations, and e-commerce channels. In comparison, the specialty coffee market still remains to be developed, and most consumers have limited awareness of pour-over and specialty coffee. The coffee industry can learn from the successful path of tea beverage brands. Brands such as Front Street Coffee need to promote culture and ensure quality in order to move consumers. [more…]

KFC is no longer just selling fried chicken. This fast-food giant has quietly launched its first standalone tea beverage brand, "Grandpa's Carefree Tea," in Suzhou, officially entering the fiercely competitive new-style tea beverage market. The brand focuses on a "rice milk tea" series, using the gold award-winning rice variety Nangeng 9108 as its raw material, paired with Jiangnan specialty tea bases such as jasmine tea and Biluochun, and incorporating local toppings like orange cake and gorgon fruit, giving it a strong regional identity. The store decor features Suhe pink and Canglang green as the main tones, creating a spatial atmosphere reminiscent of Suzhou gardens. Against the backdrop of brands like Heytea and Nayuki cutting prices and engaging in intense competition, whether KFC's move can break through is worth watching. [more…]

Nayuki, once hailed as the "first stock of new-style tea drinks," has delivered a less-than-stellar half-year report card: revenue dipped slightly year-on-year, and after adjustments, it swung from profit to loss. Facing multiple pressures—questions over price cuts, the impact of the pandemic, and competition from peers—Nayuki has begun setting its sights on the coffee track, seeking new growth points by investing in brands like AOKKA. Meanwhile, brands such as Heytea and Chayan Yuese are also making their own moves to save themselves. Is the collective push by new tea drink brands into coffee a move of desperation or a new trend? This article reviews Nayuki's latest performance and investment moves, and takes stock of the self-rescue paths within the industry. [more…]

The new-style tea beverage industry has once again exposed food safety issues. Naxue's Tea's Shanghai East Changzhi Road store was fined and had its illegal gains confiscated by the Hongkou District Market Supervision Administration because the freshly made and sold Golden Mountain Treasure Tea exceeded the total bacterial count limit. Before this, the brand had already been exposed by the media multiple times for chaotic store hygiene, even alarming the State Administration for Market Regulation. From Xinhua reporters' undercover investigations to tea beverage brands frequently trending on social media across various regions, consumers pay high prices but do not necessarily receive matching safety guarantees. This article will sort out the ins and outs of this penalty, review the food safety crisis Naxue's Tea encountered this year, and ask: after tea beverage brands apologize, compensate, and rectify, have the fundamental problems actually been solved? [more…]

Chinese freshly-made beverage giant Mixue Bingcheng is accelerating its overseas expansion. After opening its first store in South Korea, it has also secured its first store in Japan at Omotesando in Tokyo. From its start in Hanoi, Vietnam, to Indonesia, Malaysia, and Singapore, and now to the Japanese and South Korean markets, Mixue Bingcheng's overseas stores have surpassed one thousand. Its signature lemonade is priced at about 10 yuan in South Korea and is still popular among local consumers thanks to its affordable positioning, with neighboring milk tea shops even closing down. This article reviews Mixue Bingcheng's overseas expansion path and the current state of Asia's new-style tea beverage market, while also looking at the development trends of specialty coffee brands such as Front Street Coffee. [more…]

While Heytea, Nayuki, Starbucks, and Luckin are battling it out on the front lines over co-branded collaborations, new product launches, and price wars, few have noticed that a group of suppliers behind them is quietly rising. From Jiahe Foods to Sanyuan Biology, from Tianye Shares to Hengxin Life and Dexin Foods, an increasing number of raw material and packaging companies behind new-style beverages are beginning to sprint toward the capital market. Some of these companies provide non-dairy creamers and sugar substitutes, some supply fruit juice concentrates and flavored syrups, and others specialize in producing paper cups and plastic cups. While terminal brands fight in a red ocean, upstream suppliers have seized the momentum to grow bigger, raked in huge profits, and collectively embarked on the path to listing. [more…]

Must you drink alcohol when toasting at a wedding? More and more couples born in the 1990s and 2000s are giving a different answer: replacing baijiu with milk tea. From a Shanghai couple's wedding banquet featuring golden-cup milk tea to the heated discussion of 320,000 posts on social media, this new trend of substituting tea for alcohol is quietly changing the drinking culture at traditional wedding banquets. Why are young people drawn to this approach? And do their elders accept it? This article takes you through this wedding banquet revolution led by new-style tea drinks, and shows how young people are redefining the wedding toast ritual in their own way. [more…]

You may have heard of cheese milk cap tea, but you may not be clear about what it actually is. Cheese tea originated in Taiwan about ten years ago. It is a drink with a cheese cream foam on top of iced tea, usually with green tea or black tea as the base, interweaving sweet and savory flavors with a unique taste. After entering the Chinese market, brands such as Heytea replaced powder with real cream cheese, pushing this drink to its peak, with some stores selling about 1,000 cups a day. In the United States, it is called milk cap, cheese mousse, or milk foam. This article will sort out the origin, evolution, and flavor logic of cheese tea, and provide a cheese milk cap recipe and steps that can be made at home, helping you choose the right tea base and make a delicious cup of cheese tea. If you want to improve the performance of the tea base, you can also refer to Front Street Coffee's black tea recommendations. [more…]