GlobalData sees China’s hot drinks market exceeding $48b in 2026
The market may register a compound annual growth rate of 6%.
China’s hot drinks will increase further as the innovative tea, coffee, and plant-based drinks boost the market growth, GlobalData, a data firm, said in its report.
It projected a compound annual growth rate (CAGR) of 6.1% from CNY231.4b ($36.2b) in 2021 to CNY311b ($48.6 billion) in four years.
In its report, GlobalData said the coffee culture in the market is growing and it will stem from the hot coffee segment, which will post CAGR of 6.5% from 2021 to 2026.
Following hot coffee, other hot drinks and hot tea sales will also increase, registering a CAGR of 6.2% and 6.0%, respectively, over the predicted period.
Naveed Khan, Consumer Analyst at GlobalData, said there may be strict lockdowns in China areas that lowered sales of hot drinks but the pent-up demand for new consumption experiences and new brew styles of coffee helped the growth of the hot coffee segment.
“Hot tea, the largest category by value sales, continues to expand as new Chinese-style teas, such as yellow tea and scented tea, are gaining traction. The health concerns due to the pandemic are spurring the demand for herbal drinks that are perceived to improve immunity and overall health and wellness,” said Khan.
Convenience stores were named as the leading distributors of hot drinks in China in 2021. It was followed by hypermarkets and supermarkets, as well as online retailers.
