A rapidly growing beverage category in China are the milk teas. They are a combination of the bubble teas that originated in Vietnam and based and traditional milk or butter teas drunk by Mongolians and Tibetans.

In the course of 2018, China’s tea aficionados have embraced a new trend, one that is encapsulated in the growing popularity of the milk tea brand, Heytea. Originally sold in a tiny alleyway in Jiangmen, southern China’s Guangdong province, the brand went viral on social media because of its signature “cream cheese” series — a cup of hot sweet tea topped with a spoonful of savoury cream cheese. Since then, Heytea has developed into a franchise with more than 80 outlets in 13 cities across the country. There are also outlets in North America.

Milk tea now has many brands and more are still being added. Some are already established brands: for example, Naixue, Chagee, Mixue Ice Cream & Tea and Chabaidao.

This table shows the number of new outlets opened per year.

The penetration of chains has been steadily increasing in this business.

This positive trend can be expected to continue, as the total turnover of this business is expected to grow, at least during the coming few years.

Related earlier posts:

Chinese milk tea brands cover their sins with artificial sweeteners

Drinks galore – the Chinese typology of beverages

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.