China Food

“Addict” coffee can’t compete for new tea?

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whether hot or cold, coffee should be tasted slowly.
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“Working people’s coffee is the best.”. As the saying goes, the heavy workload on weekdays, coupled with the lifestyle of getting up early and working late, make it easier for workers to become coffee addicts.
The pursuit of “addicts” has made coffee expand in the domestic market and become an important investment outlet in the capital market. Of course, with the advent of the new consumption era, the coffee industry has also undergone certain changes and grew hard in the fierce competition.
6031 trillion drug addict market forecast
According to iimedia research, China’s coffee market was originally expected to reach 381.7 billion yuan in 2021, entering a stage of rapid development. It is expected that the industry will maintain a growth rate of 27.2%, and the scale of China’s coffee market will reach 100 billion yuan in 2025.
Why is coffee so popular?
Coffee is a kind of plant beverage, but in the market, coffee is unique from plant beverage and becomes a separate beverage track. The origin of coffee can be traced back to the plateau in southwestern Ethiopia a thousand years ago. At that time, people found that coffee has a refreshing effect. Therefore, coffee has also become an energy drink in consumers’ cognition.
The explosive growth of coffee has also raised questions about whether drinking coffee will have an impact on health. According to public information, a university in England once conducted an experiment on coffee addiction. After 16 hours of “quitting coffee”, only coffee fans were allowed to drink coffee, but the results showed that their concentration was the same as that of Fei coffee fans. The metal and normal level would not improve their concentration and work efficiency.
The scholar in charge of the investigation said that adenosine, which slows down the reaction of human viscera, feels “refreshing” after drinking coffee because caffeine stops adenosine from entering cells, making it difficult to fall asleep. The study also pointed out that caffeine can narrow blood vessels, accelerate blood flow and form headaches. Some coffee addicts who don’t drink coffee will have discomfort reactions such as headache, irritability, muscle tension and nervousness.
Caffeine counterfeits adenosine to make the human body think that the effect of adenosine has occurred, so as to achieve the refreshing effect, but this effect of coffee can also lead to insomnia at night.
In addition, for example, coffee can cause osteoporosis or coffee can beautify. Although it has been pointed out, and even some researchers believe that both, in fact, coffee only plays a role in refreshing and providing energy as a member of plant drinks.
As the audience of coffee has become the majority, people are more keen to pursue the form and scene of drinking coffee, as well as the category and brand of coffee. According to the Internet survey, 47% of netizens like instant coffee, while 72% value the taste of coffee most. Moreover, the proportion of domestic people drinking pure coffee is not high, and most of them choose processed coffee drinks, which also paves the way for the growth of the coffee industry.
The changes of coffee industry in China are mainly reflected in two forms: one is different coffee products, and the other is huge growth space.
Different coffee products are because there are not many people who drink pure coffee, so brands are keen to provide consumers with coffee products. At the same time, on the basis of these coffee products, they are divided into categories, such as early freshly ground coffee and instant coffee, and now ear coffee, capsule coffee and coffee liquid are coffee products that can meet various needs of consumers, which greatly improves consumers’ stickiness to coffee.
The huge growth space is mainly reflected in the domestic average annual amount of 6.2 cups of coffee compared with the average annual amount of 867.4 in Germany, 388.3 in the United States and 279 cups in Japan, indicating that the development of domestic coffee is still in the early stage of development.
According to market data, the market scale of China’s coffee industry reached 113 billion yuan in 2021, an increase of 26.9 billion yuan over 2020, with a year-on-year increase of 31.24%. It will continue to grow in the future. It is expected that the market scale of China’s coffee industry will reach 180.6 billion yuan in 2023.
Compared with various market data forecasts, the future growth of the coffee industry may be a foregone conclusion, but in the growth process of the coffee industry, other competitive products in the market are not willing to show weakness.
Coffee pairing new tea
In the domestic market, the biggest competitor of coffee is new tea.
In 2021, a hot song of honey snow ice city became popular, and Naixue and Xi tea were listed one after another. The upper, middle and lower groups of new tea drink showed their charm to the consumer market and welcomed the response of consumers.
New tea is also known as “new tea”. The consumer groups are mainly Z generation consumers and female consumers in the new consumption era. Grasping the traffic code in the new consumption era is the main factor for new tea to occupy a high position in the beverage market. According to the data of 2021 New Tea Research Report issued by China chain operation association, the number of new tea stores in China has reached 378000, and the chain rate has reached 36%. It is expected that the number will reach 500000 in 2023.
Consumers believe that new tea drinks are not only different from bottled drinks in taste, but also for social behavior. You can see the options of tea package in most new tea stores or online shopping platforms, including couple package, work package, etc., which fully shows the social purpose of new tea.
The competition between coffee and new tea is not only reflected in consumers, but also the investment in the secondary market. According to incomplete statistics of lianshang.com, there were 36 financing events for tea brands in 2021, involving up to 30 brands, and most of them were concentrated before July. In the first seven months of 2021, there were 24 financing events in the tea market, and more than 20 tea brands announced to have obtained financing. In June alone, eight brands received hundreds of millions of yuan of financing, with a total financing amount of more than 14.9 billion yuan.
According to the incomplete statistics of lianshang.com, there were 29 financing events in the coffee industry in 2021, involving 24 brands, with a financing amount of more than 4.8 billion yuan, more than three times the financing gap of new tea.
The comprehensive investment and financing of new tea drinks in the secondary market has put the coffee industry at a disadvantage in 2021. However, some investors believe that the coffee industry has long laid out the market. If the new tea drinks belong to the dividend stage in the medium-term development, the coffee industry is in a stable stage in the medium-term development. Therefore, it is difficult to determine which track is good or bad only by the amount of financing.
When the secondary market cannot determine the development direction of the industry, consumer demand may give investors a lot of inspiration. In short, if coffee is the demand of “addicts”, the demand for new tea is actually the same as that of ordinary drinks, that is, consumption preference.
In my opinion, new tea is an innovative product of ordinary drinks. In the future, the development of new tea will slowly cool down due to the heat in the early stage of consumption. Therefore, new tea will keep up with the old tea (tea industry as a whole), and even return to and approach the bottled water model. Then the market of new tea is huge, but it is also easy to encounter the bottleneck of the model.
The development width of new tea will be wider than that of coffee, but the orientation ability of coffee (the function of coffee in consumers) is stronger. On the premise that the market scale is expected to be increased, the value of coffee will also be slightly higher than that of new tea.
At this stage, the problem facing the coffee industry is not the competition of new tea drinks, but the imbalance between the market scale, consumption growth rate and expansion growth rate of coffee. If the market scale and consumption growth rate are regarded as a whole, and the expansion growth rate cannot be proportional to the former in the limited market share, investors will be unable to make money or even return their capital, That’s why people who open coffee shops don’t make money at first.
In other words, the coffee industry is growing, but the expansion speed should not be too fast.
Coffee is inseparable from brand
In addition to the limited market scale, the development of the coffee industry pays more attention to brands.
The original coffee originated from foreign aristocrats, so the high-end image of coffee is also defined. With the change of times, coffee faces a wider market, but its high-end image remains in the consumer market.
Coffee brands that implement the high-end image do not blindly pursue formalism, which can be referred to the operation mode of Starbucks. Starbucks can stand in the industry for a long time, which is not the credit of coffee. Starbucks has a variety of elements such as service, office space and high-end brands. Many blue and white-collar workers will go to Starbucks to work and talk about business. This is the background of the industry’s adherence to the rules, which is converted to the understanding of the brand, What they pursue is nothing more than the same, allowing consumers to stay in a state of higher viscosity.
The basic rule of traditional coffee shops is to keep customers in stores. Just like there were few seats in early tea stores, they correspond to different consumer needs of consumers. However, with the change of consumption habits, consumers of take out coffee also account for a large part. For example, most orders of Ruixing coffee come from take out or take out orders.
What is the relationship between the model of Ruixing coffee and the brand? It is not difficult to find that in the early days, Ruixing used the fire of marketing and promotion to make the brand famous. Now, the coffee industry has repeatedly courted Ruixing. In fact, it is inseparable from its early fame, that is, the traffic relationship occupied in the market.
Ruixing’s traffic relationship relies on early marketing and activities to make consumers have a deep impression on it. In today’s operation, coupons are still an important publicity method of Ruixing. Relying on the brand impression under this traffic, Ruixing has recovered its vitality again, which shows the influence of the brand.
Market consumers pay more attention to famous coffee brands. No matter which category of coffee products, as long as the product quality is acceptable and the brand reputation is greater, they will have more opportunities to obtain business opportunities. Of course, this may also apply to other industries.
Generally speaking, the coffee industry has a large market scale and a stable growth trend. However, at the current stage, the growth rate of market expansion is very fast, and many enterprises that are not associated with it end up taking a share, which not only accelerates the pace of market expansion, but also takes the profit share of small and medium-sized brands in the market. Only some original old brands can hold the camp in this excessive growth.
The tea market is large, but coffee is slow-paced.
Author: Zhai Caihua; Source: Zhai Caihua (ID: zhaicaihua520), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);

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