Global Product Innovation Index Series Study | From "Ingredients" to "Main Character": Minor Ingredient Innovation Reshapes Volume of Instant Tea Production

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The market size of ingredients for homemade tea drinks in China is highly related to the market performance of homemade tea drink products. Over the past five years, the growth rate of the former has been slightly higher than the industry-wide expansion in cup volume, indicating that the value of ingredients in individual cups continues to increase. In terms of the homemade tea drink market, based on product sales data, from 2021 to 2025, the sales volume of homemade tea drink products in China increased from 11.14 billion cups to 26.31 billion cups, with a compound annual growth rate of 24.7%. During the same period, the market size of ingredient raw materials increased from 9.39 billion yuan to 23.68 billion yuan, with a compound annual growth rate of 26.0%. It is expected that by 2030, this figure will reach 42.46 billion yuan. This growth comes not only from the expansion of stores and cup volume but also from the gradual integration of ingredients such as roasted sugar powder glutinous rice cakes, taro balls, coconut fruits, agar, and jelly into new products, as well as regional flavors, grain health, and dessert trends driving higher-value ingredients into menus. The increasing purchase rate of ingredients, usage frequency, and value per cup are becoming important tools for brands to create differentiation, adjust price levels, and extend the life cycle of popular products.

The competition in China's instant tea industry is continuously evolving along the direction of "supply chain integration + digital transformation". For specialty ingredients, innovation value is not only reflected in the taste concept, but also depends on whether raw materials can be purchased consistently, produced in a standardized manner, stored and transported at low temperatures, and reliably replicated across a large network of stores. The demand for temperature-sensitive raw materials such as fresh milk, fruits, and frozen ingredients is growing rapidly, driving the China instant tea cold chain logistics market to increase from 17.83 billion yuan in 2021 to an estimated 70.36 billion yuan by 2030. Cold chain capabilities have evolved from supporting functions to an infrastructure for product innovation: on one hand, it ensures the freshness of short-term raw materials; on the other hand, it reduces loss and supply disruption risks, and encourages brands to promote seasonal and regional ingredients to more cities and stores.

Supply chain competition is shifting from "available for purchase" to "customized and scaled efficiently". Leading brands are strengthening their barriers by establishing their own processing plants, intelligent warehouses, and either independent or cooperative tea plantations. The upstream tea supply is evolving from decentralized distribution to standardized customization. Refining, blending, extraction, and formula customization help chain brands maintain consistent flavors. In terms of flavor ingredients, the relationship between brands and suppliers is gradually transitioning from simple procurement to joint research and development. Products are defined based on texture, flavor, shelf life, freezing and reheating performance, and store operation efficiency, transforming flavor ingredients from regional specialties into replicable national products.

Small ingredients are shifting from "inventory" to "main roles," representing not just a visual upgrade on the menu side, but a systematic transformation across product development, raw material processing, cold chain storage, store operations, and data management. Looking ahead, tea brand brands that can use customized raw materials to create differentiation, ensure scale replication through standardized cold chain systems, and reduce losses and improve turnover efficiency through digitalization, will have a greater chance to turn single-time hits into long-term assets.