Young Consumers' Craving For Milk Tea Driving Growth In China's Instant Tea Market, Study Shows

Instant tea accounts for 38 percent of China's $9.6 billion retail tea market, according to market research firm Euromonitor International. In 2002, instant tea contributed only 4 percent to total sales in the country, but has grown $22 billion in the last 10 years. China accounts for 93 percent of the world's total instant tea sales. Unlike in other markets, however, China's instant tea sales are driven by the milk tea trend. Pushed by young consumers' demand for sweet tea products, the milk tea trend began in cafés and street stalls and kiosks that serve milk and bubble teas. The market grew by $143.6 million in 2007–2012, the study showed.