The ready-to-drink tea market is set to surpass 150 billion by 2025, with sugar-free varieties leading the growth trajectory.


Latest data shows that China's ready-to-drink tea beverage market continues to experience robust growth, reaching 128 billion yuan in 2024. The market is projected to surpass 150 billion yuan in 2025 and could potentially hit the 300 billion-yuan mark by 2030. Notably, the sugar-free segment is driving this growth, with a year-on-year increase of 32%, making it the key engine of expansion.

The younger consumer demographic is leading this trend. Gen Z and Millennials have shown a 67% increase in their interest toward "0-sugar, 0-fat" and "natural ingredients" compared to three years ago, driving the share of sugar-free tea in the ready-to-drink tea market from 15% in 2020 to 35% by 2024. Brands like Nongfu Spring’s Oriental Leaf and Yuanqi Forest have capitalized on cold-brewing techniques and minimalist packaging to secure prime shelf space in convenience stores, while regional flavor innovations are thriving—complex blends such as Phoenix Dancong Lychee Tea and Jasmine Grapefruit Tea are seeing a robust 20% annual growth in penetration rates within New Tier-1 cities.

Channel transformation is accelerating in tandem, with online sales now accounting for 22% of the market. Instant retail models like Meituan Flash Purchase are seeing their usage among 18-30-year-olds grow by an annual average of 22%. Industry forecasts suggest that ready-to-drink functional teas (such as those designed to aid sleep or boost energy) will become the next big battleground, with the market potentially surpassing 30 billion yuan by 2030.

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