Tea vs. Coffee: is coffee becoming China’s new cup of tea?

Tea has long been synonymous with Chinese culture, steeped in over two thousand years of history and tradition. In 2023, the tea market reached a remarkable US$ 54.2 billion, solidifying its place at the heart of Chinese life. But a new contender is rising, driven by a younger generation and fueling a market now worth US$ 19.1 billion. Could coffee really be on its way to becoming China’s new cup of tea?

How tea has reinvented itself for a new generation

Tea has been a cornerstone of Chinese identity for thousands of years, seen as a symbol of hospitality, conviviality or simply as an excuse to allow oneself a moment of peace in everyday life. But now that coffee culture is steadily winning over younger generations in China, it might seem that tea’s reign is under threat. However, the data paints a different picture: nearly half of Chinese consumers still drink tea daily, while coffee consumption lags behind, with only 27.6% enjoying it three to four times a week. Everything suggests that the real shift isn’t about coffee replacing tea—it’s about tea reinventing itself to align with modern lifestyles, with “new-style tea” leading the way.

At the heart of this tea revolution is the booming bubble tea market, which has reshaped drinking habits and become a staple of daily life. Nearly two-thirds of consumers indulge in bubble tea two to three times a week, with brands like HeyTea, Nayuki and Coco driving a cultural transformation. In fact, these brands go well beyond merely selling tea; they offer an experience, presenting a diverse selection of unique flavors for consumers to enjoy in exquisite locations.

Gen Z’s craving for convenience and novelty is also heavily influencing tea culture: they now rely on apps for ordering, enjoy their drinks on the go, and are happy to try creative options, leaving traditional tea rituals for rare occasions only. Rather than fading away, it appears that this generation’s love for tea is evolving, driven by efforts to blend centuries-old traditions with the fast-paced demands of modern life.

Brewing a lifestyle: China goes crazy for specialty coffee beans

In recent years, specialty coffee has carved out a vibrant space in the Chinese market, introducing consumers to a world of single-origin beans, artisanal brewing techniques, and refreshing cold brews. For many, the origin and quality of their coffee have become key factors in their choices, with an increasing number willing to pay higher prices for a better brew.

Yunnan, the birthplace of China’s coffee revolution, stands at the forefront of this movement: in little over 30 years, it transformed from a rural farming region into a premium coffee powerhouse. With the arrival of Starbucks in the 1990s and Luckin Coffee’s explosive rise in 2017, coffee culture in China has blossomed, becoming an integral part of contemporary life.

But this is more than just a caffeine fix—it embodies a broader trend where experiences are prized over luxury goods. The younger generation now values sipping a perfectly brewed cup over owning designer handbags, and global brands are taking notice. From international specialty roasters sourcing Yunnan beans to luxury giants like Louis Vuitton and Burberry opening cafés, coffee is shaping a new narrative of affordable luxury in China.

The trends shaking up China’s coffee and tea culture

Is plant-based milk the next big thing?

China’s growing appetite for plant-based milk is transforming coffee and tea menus across the country. The success of brands like Oatly, which after its 2018 debut rapidly expanded to thousands of cafés, speaks volumes about the shifting preferences of Chinese consumers. From oat lattes to coconut-infused teas, these plant-based alternatives are opening up endless possibilities for creating more eco-friendly and flavorful beverages, reflecting the evolving tastes and priorities of the younger generation.

The wellness revolution

Health-conscious consumers are redefining China’s beverage scene, pushing the coffee and tea markets to meet their needs. Young professionals and fitness enthusiasts are shifting toward beverages that fuel their active lifestyles, with coffee brands like Luckin and Saturnbird offering convenient, on-the-go options. Meanwhile, the demand for herbal teas, prized for their natural health benefits, continues to rise. With wellness at the forefront, these industries are adapting quickly, offering drinks that not only satisfy taste but also support a healthier way of living.


Sip, click, repeat

Today’s tech-savvy younger consumers expect brands to keep up with their fast-paced lives, offering services that fit right into their routines. As a result, coffee and tea brands are making it easier than ever to order, pay, and have drinks delivered through simple apps. Platforms like WeChat and Meituan are allowing consumers to get their favorite beverages quickly without disrupting their busy schedules, all while meeting the growing demand for efficiency and effortless experiences.

So, what’s next for China’s tea and coffee culture? It’s clear that both markets are set to grow together, with each adapting to meet the demands of the younger, fast-moving generation. Coffee may be on the rise, but tea is here to stay.

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