In recent years, the milk tea market has undergone an unprecedented change, from high-end luxury to affordable and affordable today, which not only reflects the change of consumer demand, but also profoundly reveals the fierce market competition and the adjustment of brand strategy.
Today, I will deeply analyze this change process of the milk tea market from multiple dimensions such as market size, consumption trends, competitive landscape and future prospects.
The milk tea market has continued to maintain rapid growth in recent years and has become a dark horse in the catering industry. According to relevant data, the scale of the mainland milk tea market will exceed hundreds of billions of yuan in 2023, and the year-on-year growth rate will remain in double digits. This achievement is mainly due to the growing consumer love and demand for milk tea, as well as the continuous innovation and optimization of the product strategy of the milk tea brand. Especially with the accelerated expansion of tea brands, the sinking market has gradually become a new growth point. The market size of ready-made tea shops in third-tier cities, fourth-tier cities and below is growing rapidly, with the market size increasing from tens of billions of yuan in 2018 to hundreds of billions of yuan in 2023, with a compound annual growth rate of more than 30%.
And with the popularization of the concept of healthy eating, consumers are paying more and more attention to the health attributes of milk tea. Health products such as low sugar, low fat, and no additives are more popular. Milk tea brands have begun to focus on using natural and healthy raw materials and reducing the use of additives to meet consumers' demand for healthy drinks.
Bubble tea brands are also providing more personalized and customized services to meet the needs of different consumers. For example, the introduction of seasonal limited models, regional special models, etc., to attract the attention of consumers.
With the popularization of the Internet and the development of mobile payment, milk tea brands have begun to pay attention to the combination of online marketing and offline services. Promote your brand through social media, short videos and other channels to attract more young consumers. At the same time, big data and artificial intelligence technology are used to optimize the service process and improve consumer satisfaction.
Some bubble tea brands have cooperated with other industries or cultural IPs to launch co-branded products and themed activities to improve brand awareness and reputation. This kind of cooperation not only brings freshness to the brand, but also meets the needs of consumers for personalized and diversified consumption.
The price war has entered a white-hot stage!
The milk tea market is highly competitive and there are many brands. In order to attract consumers, brands have launched new flavors, new packaging, new marketing strategies, etc. Well-known brands such as Coco, Heytea, and a little bit occupy an important position in the market. At the same time, emerging brands are also emerging, expanding their market share through innovation and differentiated competition.
In recent years, the milk tea market has experienced fierce competition in price wars. In order to seize market share, some brands have accelerated their sinking into the county market, and tried to expand the scale of 10,000 stores by providing preferential policies such as rent subsidies and zero franchise fees. The continuation of the price war has caused the price of milk tea products to continue to fall, and even milk tea of 4~8 yuan has appeared. This trend has not only affected the parity market, but also forced high-priced brands to adjust their strategies and launch more low- and medium-priced products.
With the sinking of high-end brands and the compression of the parity market, brands such as Shuyi Xiancao, Ancient Tea, and Tea Baidao have no choice but to continue to compress. The brand on the 3rd floor has reached the 1st floor, and the brand on the 1st floor can only burn the war to the parking lot.
The milk tea industry is now a huge ten-dollar shop. 9.9's Luckin and Cudi have done what Starbucks has not done: cultivating a generation of coffee consumers for China. MINISO, a ten-dollar store that was criticized for "holiday goods" at the beginning, has now turned over.
ALDI, which was not expanding effectively in China a few years ago, has suddenly emerged in the past two years and has relied on low prices to find a way. 9.9/L additive-free pure juice, 8.6 yuan/950ml fresh milk, 12.9 cream ...... The king of the sinking market, Mixue Bingcheng, has squeezed out the last bit of water of 4 yuan of lemonade: at present, various channels in Mixue Bingcheng can buy 0.01 yuan of lemonade through coupons, group purchases, etc.
Going around and around, now milk tea has returned to its original price, and in the new consumption field, the weight of this balance is 9.9.
In the face of the trend of "revaluing the scales" for all consumer goods, how can brands prepare for the future and ensure that they remain competitive and sustainable in a highly competitive market?
Strengthen brand value and differentiation
Deepen the brand story: Construct and deepen the cultural connotation and story of the brand, so that the brand is not just a product identity, but a link for consumers' emotional connection.
Differentiated positioning: Clarify the unique position of the brand in the market, differentiate competitors through differentiation in products, services, experiences, etc., and meet the needs of specific consumer groups.
Focus on product innovation and quality
Continuous innovation: Continuously develop new products and technologies to meet the changing needs of consumers. At the same time, pay attention to industry trends and consumer feedback, and adjust product strategies in a timely manner.
Improve quality: reduce costs without sacrificing product quality. By optimizing the supply chain and improving production efficiency, we ensure the stability and reliability of product quality.
Optimize your pricing strategy
Flexible pricing: Adjust product prices flexibly according to market changes, consumer needs and brand positioning. Attract customers at different levels of consumption and increase market share through price strategy.
Value pricing: Emphasize the value and cost performance of the product, so that consumers feel value for money. By providing high-quality services and increasing the added value of products, etc., consumers will be more sensitive to prices.
Strengthen digitalization and intelligence
Digital transformation: Leverage technologies such as big data, cloud computing, and artificial intelligence to optimize production, marketing, and services to improve efficiency and accuracy. Gain insights into consumer needs and market trends through digital means to support brand decision-making.
Intelligent experience: Through smart devices, virtual reality, augmented reality and other technologies, it provides consumers with a more convenient and interesting shopping experience. At the same time, the use of intelligent recommendation system, personalized marketing and other means to improve consumer shopping satisfaction and loyalty.
Strengthen channel and supply chain management
Multi-channel layout: While maintaining the advantages of offline stores, we actively expand online channels, such as e-commerce platforms, social media, and live streaming. Reach a wider range of consumers through a multi-channel layout to increase brand exposure and sales.
Supply Chain Optimization: Optimize supply chain management to reduce costs and improve response speed. Ensure the stability and timeliness of product supply by establishing stable supplier relationships and optimizing inventory management.
Focus on sustainability
Environmental protection and public welfare: actively fulfill social responsibilities and pay attention to environmental protection and public welfare. Reduce the impact on the environment by promoting green packaging, energy conservation and emission reduction. At the same time, participate in public welfare activities to enhance brand image and reputation.
Sustainable development strategy: Formulate and implement sustainable development strategy, focusing on the long-term development and social responsibility of the enterprise. Through innovative business models and optimized resource allocation, we will achieve coordinated economic, social and environmental development.
The changes in the milk tea market are not only the inevitable result of market competition, but also a direct reflection of changes in consumer demand. From high-end luxury to affordable and affordable, this shift not only brings milk tea closer to consumers' lives, but also promotes the sustainable development of the entire industry.
In the future, with the further deepening of consumer trends such as health, quality, and personalization, the milk tea market will usher in broader development prospects. However, in the face of fierce market competition and changing consumer demand, bubble tea brands need to constantly innovate and optimize their product strategies in order to remain invincible in the market.
Written by: A Fish Editor: Amy Producer: Global Entrepreneurial Figures
Welcome to like & comment & forward with full link~