Development trend and respective characteristics of Coffee and New Tea in 2021 domestic Beverage Market

In recent years, new-style tea has rapidly occupied the beverage market in China. Ten thousand stores have been opened in Honey Snow Ice City, and tea shops have begun to be laid out throughout the country, while the coffee market is not inferior, and minority brands continue to rise. Three and a half meals, Nova Coffee, Sumida Coffee, Yongpu Coffee and other coffee brands continue to raise money successfully. Among them, Yongpu Coffee has successfully entered the coffee market with the most representative portable cold-extracted coffee liquid.

According to the incomplete statistics of "Overview Business", there were 22 financing incidents in the coffee and new tea race track in 2020, with the total disclosed funds exceeding 2 billion yuan. Among them, the financing amount of tea is more than 1.2 billion RMB. From the point of view of the amount of financing, coffee is always better than tea.

Yongpu coffee sales in 2020 double 11 is 10 times that of the same period last year, and three and a half meals of coffee, with the signature product instant coffee, taste close to freshly ground coffee opened in the instant market.

According to CBNData's 2020 Consumer Insight report on the online Coffee Market, even during the epidemic, Chinese consumers' demand for coffee is increasing, opening up a broader coffee market, and the business model of coffee shops is no longer limited to stores, but also to promote corresponding services such as online platforms.

When it comes to China's coffee market, we have to mention coffee giant Starbucks. Starbucks has enlightened China's coffee market and explored new ways to play it. Starbucks first put forward the concept of "third space", which aims to provide guests with a third space besides home (the first space) and the workplace (the second space). In addition, on May 21, 2019, Starbucks China also launched the "Kaikai" concept store, the shopkeeper played "on-line, to the store to pick up", a change from the previous main third space experience.

Old coffee brands like Starbucks have occupied the Chinese market for as long as 20 years. They know China's coffee consumption market, consumption habits, value culture and other aspects like the back of their hand, and establish a certain market customer group. According to the CBNData report, senior middle-class, white-collar workers and fashionable women have become the main force of coffee consumption.

Starbucks said it aims to reach 6000 stores in 230 Chinese cities by the end of 2022. Even though the scale of coffee chains of old brands such as Starbucks is larger than that of ordinary coffee shops, there is still a gap compared with the tea market. For example, at present, the number of stores opened in China has reached more than 4000, while the number of COCO milk tea stores has reached nearly 2000, and recently Naishuangcha and Xi Tea are becoming more and more famous.

The reason why the new tea can firmly occupy the domestic beverage market, on the one hand, is to guide consumers to consume by relying on the taste bud habits and taste memory of domestic consumers. Obviously, coffee, as a latecomer or outsider, has a certain deviation from the natural taste memory of Chinese people, so the dependence of domestic people on coffee is not the same as that of new tea drinks, and domestic tea drinks are often paired with fruits. With beauty and skin care and other functions, cater to the current young consumers for health needs, and then perfect with milk, sugar, but also attracted a group of sweet consumers.

But as the competition in China's beverage market becomes more and more fierce, coffee and tea are no longer focused on their own fields but on each other's fields. For example, Xi Tea began to enter the coffee market, launching individual coffee in April 2021, while Xicha launched the tea brand Xiao Lu Tea in 2019. Coffee and tea markets are putting on a good play about competing for the domestic beverage market. Please wait and see who will become the leader of the domestic beverage market in 2019.

* Image source: Internet