Summary of Key Points
The focus of competition in the beverage industry is shifting from what's inside the cup (taste, price, ingredients) to what's outside the cup (packaging, containers, and other touchpoints with consumers). On one hand, brands are using innovative and novel packaging, such as edible cups, to attract attention and generate buzz. On the other hand, they are making improvements in smaller details, like leak-proof lids, to enhance the user experience. This shift reflects the fact that the competition over core products (taste, price, distribution channels) has reached a plateau, forcing companies to engage in more meticulous and targeted efforts.
1. When Innovation Inside the Cup Hits a Wall, It's Time to Focus on the Outside?
In the past, beverage brands could succeed with a few key strategies: a hit product that became a sensation (like Xicha's cheese tea), price wars to gain market share (9.9 yuan coffee), or opening more stores to reach a wider audience. However, these approaches are no longer effective:
- Taste Innovation at an Impasse: The formulas for mainstream beverages (milk tea, coffee) have been largely explored, and the success rate of new products is declining; consumers' interest in a single flavor fades quickly.
- Price War to a Dead End: Coffee priced at 9.9 yuan and other low-cost drinks have become the norm, and further price cuts would hit the cost threshold, leaving no profit margin.
- Channel Saturation: All the best locations for physical stores have been taken, increasing the cost of acquiring new customers.
Since it's difficult to differentiate products based on the liquid itself, brands are turning their attention to the packaging—items that consumers can see and touch, which leave a lasting impression.
2. Why Are Edible Cups Always Limited-Time Releases?
Recently, Rosen's "biscuit cup coffee" became popular, but edible cups aren't new (KFC tried them in the UK in 2015, and MStand launched them in 2022). The reason they haven't become mainstream is practical:
- High Cost: Regular paper cups cost only 0.3–0.5 yuan each, while edible cups require both a waterproof coating and food-grade materials, making the production cost much higher. This makes them unaffordable for beverage brands that rely on high-volume sales.
- Limited Usage Scenarios: Edible cups are best consumed within 30 minutes; they become soft and leaky after longer, limiting their use to in-store consumption, despite外卖 accounting for a large portion of sales.
- Poor Quality: Manually made edible cups have inconsistent quality (some are crispy, some are soft), while industrially produced ones are often dry and tasteless. Consumers usually buy them once and don't repurchase.
- Supply Chain Challenges: There are few manufacturers in China capable of producing reliable edible cups in large quantities.
So why does Rosen still offer them? It's a strategy to attract attention with a limited-edition offering, as the cost of failure is low. The free promotion drives traffic to the store, where customers can also buy other products, generating more revenue.
3. Why Are Leak-Proof Lids Such a Critical Competition Factor?
While edible cups represent innovative attempts, leak-proof lids are essential for ensuring customer satisfaction. Have you ever experienced a half-leaked cup of coffee during delivery? This small issue significantly affects customer loyalty. Brands are focusing on improving lid design:
- Kudi's New Lids: They replaced the traditional cross-shaped opening with a dual-spout design that prevents leakage, whether the cup is inverted or dropped.
- McDonald's Mistake: Their previous cold drink cups had narrow spouts, leading to leaks when tilted. The new design addresses this issue by changing the spout position.
- Additional Improvements: Some brands use silicone paper gaskets (costing less than 1 cent) to seal gaps, and they offer different types of lids for in-store and takeaway use.
Improving lid design is a matter of basic customer satisfaction; customers won't praise a brand just because the cups don't leak, but they will stop buying if the lids do.
4. The Industry Is Now Focusing on Small Details
In the past, growth relied on major initiatives (hit products, price cuts, store expansions). Now, success depends on minor improvements:
- Collaborations with IPs: For the summer of 2025, two-thirds of new beverage collaborations feature domestic IPs. Consumers are buying not just the drink but also the associated branding (e.g., Genshin Impact, The Forbidden City).
- Packaging Details: Sealing strips that cannot be resealed, tear-resistant packaging, and heat warnings on cup bodies.
- Delivery Experience: Starbucks designed thermal cups for takeaway, and Xicha's packaging includes handles to prevent hand burns.
These seemingly insignificant details are crucial as they shape customer experiences. There are no more sudden market breakthroughs; all the easiest opportunities have been exploited. The focus is now on maintaining customer loyalty through these subtle improvements.
In Conclusion
The beverage industry has shifted from competing on product features (taste, price) to focusing on the details that make products more user-friendly and appealing in a saturated market. The battle for customers revolves around capturing their attention and encouraging repeat purchases.