On Dec. 3, Nayuki’s Tea held its second “Tea Drinkers Summit” in Shanghai. At the summit, Nayuki released a white paper along with CBNData revealing young people’s beverage drinking habits in 2020.
Nayuki’s Tea, one of the biggest bubble tea chains in China, started in 2015 and now operates over 350 stores across China. The popular tea chain sells fresh-fruit tea — some with cheese foam on top — as well as cold brew tea, bubble tea, and baked goods.
According to the white paper, the pandemic has accelerated the growth of Nayuki’s Tea. The market scale is expected to exceed 100 billion yuan by the end of 2020.
The Chinese tea beverage market is twice as big as the Chinese coffee market, according to an online food delivery service platform Ele.me. The total scale of the Chinese tea beverage market has reached 442 billion yuan ($67.65 billion) in 2020.
As young people’s go-to place, Nayuki’s Tea reported that more than half of the orders are made online. Since 70% of the users are Gen-Z and millennials, consumers are opting for digital shopping experiences.
What is also worth mentioning is that more male consumers are buying tea beverages this year. Compared to last year’s consumers’ gender ratio of 3:7, this year’s ratio is more even, coming in at 4:6.
Health concerns are often taken into consideration when purchasing tea beverages. More consumers choose to add less sugar to their drinks. “0-calory sugar” and “probiotics” are the best selling toppings among all ingredients.
With more consumers falling in love with tea beverages, Nayuki’s Tea is branding itself to young professionals. Nayuki’s Tea has opened “Nayuki Pro” in densely-populated business areas, offering novel tea drinks and baked goods to refresh commuters’ minds.
As the first unicorn company in the bubble tea industry, Nayuki’s Tea completed its series A funding round with a valuation of 6 billion yuan in March 2018. The firm is also looking to raise about $50 million to $100 million in a pre-IPO funding round this year, according to Bloomberg News.