Although value sales see a marginal decline, upgrading is seen in some categories
Hot drinks in China saw a decline in retail value sales in 2025. Despite this, premiumisation and product upgrading drove growth in certain categories. Coffee transitioned from instant to fresh coffee, while tea remained stable with niche categories like fruit/herbal tea growing. The industry faces challenges from rising costs and price sensitivity, but is expected to grow through to 2030, driven by innovation and premiumisation. Local brands dominate, while international brands are adapting their strategies. The distribution landscape is evolving, with retail e-commerce on a consistent rising trend.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in China report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in China?
- To what extent are health considerations impacting consumption of Hot Drinks in China?
- What are the traditional preferences in Hot Drinks in China? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in China?
- Which are the leading brands in Hot Drinks in China?
- How are products distributed in Hot Drinks in China?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in China
Although value sales see a marginal decline, upgrading is seen in some categories
KEY DATA FINDINGS
Premiumisation particularly evident in coffee and other hot drinks
Fruit/herbal tea meets consumers’ needs on many levels
Rising costs impact customers and companies
Brands try to strike a balance between affordability and sustainability
Value growth anticipated, but challenges will remain
International players likely to reshape their product portfolios
The integration of online and offline channels will be important
Yunnan Taetea (Dayi) Tea Industry Group maintains its lead in a fragmented industry
Local brands perform well, while international brands are adapting
Retail e-commerce is dynamic and becomes the leading distribution channel
Smaller local retailers remain popular but are challenged by more modern channels
Synergies between retail and foodservice channels
Transformation of hot drinks in foodservice
COUNTRY REPORTS DISCLAIMER
Coffee in China
KEY DATA FINDINGS
Consumer upgrading contributes to retail value growth
Premiumisation trend and rising prices drive value growth but volume decline
Fresh coffee sees dynamism as consumer knowledge and coffee machine ownership rise
Multiple factors will contribute to growth, including a wider consumer base
Digital and technological advances are making their impact felt in coffee
Sustainability set to become an even more important factor in coffee
Despite a falling value share, Nestlé’s wide portfolio and long history maintain its lead in coffee
Yunnan Four Cats Coffee Co takes advantage of localisation, new launches, and social media
Retail e-commerce leads distribution, due to its convenience, and product and service offering
Retail e-commerce is also the most dynamic distribution channel
Tea in China
KEY DATA FINDINGS
Fruit/herbal tea maintains retail value growth, despite decline for tea overall
Although volume and value sales decline, growth is seen for some product types
Demand for healthy beverages and flavour innovation drive solid growth for fruit/herbal tea
A return to growth as incomes rise, knowledge rises, and products diversify
Technology will be used for traceability, consumer engagement, and production efficiency
Health and sustainability will be important in tea
Long history and wide distribution help Yunnan Taetea Tea Industry Group maintain its lead
A focus on Mengku large-leaf Pu'er tea drives strong growth for Shuangjiang Mengku Tea Co
Professional advice, wide portfolios, and culture maintain the lead of tea specialist stores
Retail e-commerce sees exceptional growth due to marketing, live-streams and service improvements
Other Hot Drinks in China
KEY DATA FINDINGS
Volume growth, premiumisation, and innovation contribute to retail value growth
Premiumisation and product development contribute to value growth, although volume sales also rise
Other plant-based hot drinks overwhelmingly dominates, as these products are seen as “pure”
Continued growth for other hot drinks as consumers see such products as "food as medicine”
Technology likely to increasingly impact other hot drinks
Adapting to changing health and wellness and sustainability demands will be crucial
Despite high fragmentation, VV Group maintains its lead thanks to strong brand equity
Nestlé succeeds by focusing on health and premiumisation
Small local grocers still valued for impulse purchases and replenishment
Convenience and a wide product range maintain growth for retail e-commerce
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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