Summary of Key Points
Recently, new tea beverage brands have collectively shifted their focus: on one hand, they are entering the ice cream market (for example, Bawang Chaji has launched gelato made with its tea base, Xicha has opened its own ice cream stores, and Ningji has acquired Hagen-Dazs), and on the other hand, they are expanding into the snack business (such as Lemon Xiangyou opening fresh snack shops, Cha Yan Yue Se producing short-life snacks, and Mixue Bingcheng launching a 1-yuan snack range). The reason behind this is the slowdown in growth in the main tea beverage market (with an expected growth rate of only 5.7% by 2025), prompting brands to seek new sources of revenue. However, crossing over into other industries is not a casual endeavor; it requires leveraging existing supply chains and product strengths to turn these side businesses into genuine drivers of growth.
Ice Cream Becomes the New Battleground: Innovating with Tea Base and Frozen Treats
This summer, new tea beverage brands have shown great creativity in their ice cream offerings:
- Ningji Takes Control of the Market: It acquired Hagen-Dazs' operations in mainland China (the transaction was completed in 2026), immediately entering the high-end ice cream market.
- Bawang Chaji Leverages Its Milk Tea Strengths: Using signature milk teas like Boya Juexian and Yimo Shan Yue as bases for gelato (referred to as "Chala Duo"), with prices ranging from 18 to 26 yuan for ten flavors, initially tested in five cities before a nationwide rollout.
- Xicha Moves from Experiment to Independent Stores: It has separated its gelato offerings (called "Xila Duo") from its laboratory stores and opened its first "gelato lab+" in Xiamen, also introducing limited-edition products such as pineapple crisp, with plans for new stores in Shanghai and Beijing.
- Mixue Bingcheng Targets Mass Appeal with Value: It launched a 9-yuan ice cream bowl featuring tea elements, appealing to consumers with both appearance and price.
These moves are not just taking advantage of the summer trend; they aim to transform the traditional "milk tea" experience into a combined "milk tea + ice cream" offering, encouraging customers to spend more.
The Snack Business Is Booming: From Casual Purchases to Dedicated Stores
Selling snacks has become a core business for new tea beverage brands:
- Opening Independent Stores: Lemon Xiangyou's fresh snack shop in Shanghai sells over 260,000 units daily, focusing on freshly baked pork and short-life nuts to meet the demand for healthy, fresh options.
- In-Store Conversions: Cha Yan Yue Se has opened "Jishi Shangwei" within its existing tea beverage stores, selling marinated meats, pastries, and cold-brewed teas, emphasizing minimal additives and short shelf life.
- Affordable Options: Mixue Bingcheng's 1-yuan snack range (such as melon seeds and rice crisps) uses its own production facilities and outsourcing to control costs. Its "Juli Nai Bai" snacks blend floral tea flavors with crispy nuts, continuing the brand's aesthetic.
The role of snacks has evolved: from minor extras to a crucial tool for encouraging repeat purchases and increasing average transaction values.
Why Not Focus on Milk Tea? Main Market Growth Has Slowed Down
It's not that new tea beverage brands don't want to sell milk tea; rather, the market is becoming less profitable. Data shows that the growth rate of the new tea beverage market has dropped from nearly 20% in 2023 to 5.7% by 2025. This means that relying solely on traditional products is no longer sufficient to generate profits. Diversifying product lines is the most direct way to break this trend—by expanding into ice cream, snacks, baked goods, and cultural merchandise, brands can cater to a wider range of consumer scenarios (such as enjoying ice cream in summer or snacking while watching dramas), thereby encouraging customers to spend more and visit their stores more frequently.
Can Cross-Over Strategies Succeed? It Depends on Leveraging Existing Advantages
Crossing over into other industries is not a random decision; it requires leveraging existing capabilities. Otherwise, the efforts are just gimmicks:
- Supply Chains Must Be Reliable: For example, Bawang Chaji can use its milk tea base for gelato without having to search for new ingredients; Cha Yan Yue Se needs to have the infrastructure for producing fresh snacks with cold chains.
- Products Must Align with the Brand: Snacks like Juli Nai Bai's tea-flavored options and Mixue Bingcheng's affordable prices maintain the brand's identity, preventing customers from feeling dissonance.
- A Complete Customer Experience: For instance, Cha Yan Yue Se's in-store offerings allow customers to purchase snacks while buying milk tea, providing a more convenient and satisfying experience.
Only by achieving these criteria can cross-over strategies truly become sources of growth rather than mere attention-grabbing tactics.
In Conclusion
The cross-over efforts of new tea beverage brands are not a sign of neglecting their core business; they are innovative responses to market challenges. By expanding into ice cream and snacks, brands are seeking additional ways to connect with consumers beyond the traditional milk tea offering. However, whether these strategies will be successful depends on their ability to apply their existing strengths (such as tea bases, supply chains, and brand identities) to create products that customers find appealing and worthwhile. After all, customers will only pay for products that are delicious, affordable, and meet their needs.