The prices of new-style tea drinks have been reduced collectively, while coffee brands such as Starbucks and Ruixing have collectively raised prices, and the coffee market is not enough.
At the beginning of 2022, migrant workers were worried about whether they could withstand the slap of real life, and last year they were able to have a latte in the morning and a cup of milk tea in the afternoon. First, after New Year's Day was told that there was no freedom of milk tea, and then after the Spring Festival, he was told that he had lost the freedom of coffee.
Fortunately, this beautiful "good" scene is not too long. Although the salary did not rise much, the brand of milk tea took the initiative to reduce the price. Can not afford to drink Starbucks coffee, still can not afford to drink, but now can afford to drink Xi Cha, Nai Xue. In contrast, the pleasant appearance of tea with a price increase of 1 yuan in five and a half years is not as fragrant as happy tea.

It has been 7 years since the birth of the first high-end new tea brand. During this period, consumers have gone from curiosity to fanaticism to rationality. The arrival of the epidemic has exacerbated consumers' health and economic insecurity.
In 2021, food safety accidents of new tea brands occurred frequently, which made some consumers lose confidence in this drink. There are also some white-collar workers who seldom drink milk tea because it is expensive and unhealthy. In addition, according to the data from the 2020-2021 Chinese New Tea Industry Development report, 57% of consumers are more willing to accept milk tea products with a price of 10-15 yuan per cup, while only 27 percent of consumers choose a single cup of 15-20 yuan milk tea.

Consumers are waking up and are no longer infatuated with consumerism, and more and more people begin to complain that some new teas are priced too high. The dividend period of the new tea flow is gone. Xi Cha and Nai Xue, as representatives of high-end new tea brands, also give the answers they need to maintain growth. Xi Tea and Nai Xue successively announced price reductions, and their price reduction efforts were so great that they even appeared 9 yuan per cup; in addition, the pricing of new products was no longer hanging high. Nai Xue promised to offer no more than 20 yuan for tea every month, and Xi Tea announced that it would no longer launch products of more than 29 yuan. The purpose of this price reduction is to gain a broader market share and carve up the sinking market.
Compared with Honey Snow Ice City, which has long been the head of the sinking market, although most of the products sell for less than 10 yuan, only in 2019, the income is 6.5 billion yuan and the net profit is 800 million yuan. On the contrary, low-cost products bring higher profits, that is, small profits and quick turnover.
On the contrary, the price of coffee has been increased by many coffee brands due to the influence of international coffee futures prices, operating costs and other factors. In mid-February, Starbucks led the increase in the price of coffee, followed by Lucky and Tims.

The new tea drinks have complex materials, self-controlled raw materials and high flexibility. Xi Cha says it has accumulated in the supply chain to ensure quality and reduce the price of its products at the same time.
The raw material of coffee is single, the cost is closely related to the raw material, the raw material market changes, of course, the price will also change. Coffee, a commodity, is greatly affected by aging and storage, which is different from tea. In the case of rising raw material prices, coffee companies increase the price of coffee products in order to ensure their healthy operation and the quality of operation and service.

As you can see, the new tea is going down and the coffee is going up. According to the 2021 New Tea Research report released by the China chain Management Association, the growth rate of new tea will periodically slow to 10% and 15% in the next 2-3 years. While the new tea industry is still giving birth to new brands, for newcomers, there are not many opportunities left.
The expansion and development of the coffee industry has just begun. Frost Sullivan data show that the annual per capita consumption of ready-made coffee in China is expected to increase from 1.8 cups in 2020 to 5.5 cups in 2023, and the size of the current coffee market will increase from 63.3 billion yuan in 2020 to 157.9 billion yuan in 2023.
Starbucks on Bad Street is no longer a dominant company. Lucky surpassed Starbucks with a price of 10 to 20 yuan to become the largest coffee brand in China. Overseas coffee brands such as Tims, Blue Bottle and Piye have also taken a fancy to the fat meat in the Chinese coffee market. China's coffee market is so big that today's coffee brands are still seizing it. Tims China plans to have 2750 stores by 2026.

With the development of tea industry, the gap is narrowing. Price reduction is not only a means of competition, but also a way of marketing. The increase in the price of coffee is not only because of the raw materials, but also because of the brand and the gap at the beginning of the competition.
Photo Source: Internet
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