Analysis Report on the Competitive Landscape of China's Sugar-Free Tea Market

According to the latest market research data, the competitive landscape analysis of China’s sugar-free tea track is as follows:

In 2024, China’s sugar-free ready-to-drink tea market presented a

[1]:

• Nongfu Spring (Oriental Leaf)
  : Leading by a wide margin with a
  75%
  market share, occupying an absolute dominant position [1][2]
• Suntory Oolong Tea
  : Staying firmly in the second tier with a
  10%
  share [1][2]
• Other brands
  : Combined share is only
  15%
  [1]

From Q2 2024 to Q1 2025, the top 5 sugar-free ready-to-drink tea brands were: Nongfu Spring, Suntory, Master Kong, Guozishule, and Uni-President [1][2].

: From 2018 to 2024, the size of China’s tea beverage market increased from 1,144 billion yuan to 1,545 billion yuan, with a 7-year compound annual growth rate of 5.2% [1].

: From January 2022 to December 2023, the sales share of sugar-free tea in ready-to-drink tea rose steadily from 16% to 32% [1].

: The growth rate turned from positive to negative in the first 3 months of 2025, with sales in March decreasing by 5% year-on-year, and the market entered a digestion and consolidation phase [1].

• Oriental Leaf
  : With first-mover advantage and accurate grasp of consumers’ demand for sugar-free tea, it has accumulated high awareness and reputation over the long term [1]
• Suntory Oolong Tea
  : Relying on brand history and professional positioning in oolong tea, it maintains its position in the second tier [2]
• Other brands
  : Seek development space under the shadow of giants through niche segments or differentiation strategies [1]

• Diversification of flavors
  : Jasmine tea has the highest share (about 31.6%), followed by oolong tea (32.4%) and Pu’er tea (14.4%) [1]
• Diversification of specifications
  : Expanding from traditional 350ml and 500ml to family sizes such as 900ml and 1.25L [2]
• Quality upgrade
  : The average unit price of mainstream tea varieties is higher than the same period in 2024, reflecting consumers’ higher requirements for quality and taste [1]

• Offline channels
  : Account for about 81.5%, with convenience stores as the main battlefield [1]
• Online channels
  : Account for 18.5%, but with rapid growth [1]

• Age structure
  : Young consumers under 30 account for 70.8%, which is the absolute main force [1]
• Consumption motivation
  : Health demands (sugar-free, refreshing) and convenience are the main purchase drivers [1]

1. Concentration of leading brands will further increase
   : In the first half of 2025, CR5 has risen from 77.3% to 79.6%, and CR10 from 88.2% to 90.2% [2]
2. Intensified price competition
   : Brands will compete for market share through promotions and new product pricing strategies
3. Increased product homogenization
   : Innovation will be the key to breaking through

1. Penetration into sinking markets
   : Leading brands like Oriental Leaf will expand to third- and fourth-tier cities [2]
2. Functional extension
   : Adding functional ingredients (such as probiotics, vitamins, etc.) may become a new growth point [2]
3. Cultural export
   : Chinese sugar-free tea brands may learn from Suntory’s experience and enter overseas markets [2]

Facing the fierce competition in China’s sugar-free tea market, Suntory may consider:

1. Strengthen professional positioning in oolong tea
   : Leverage the advantages of Japanese oolong tea brand to highlight product differentiation
2. Channel sinking strategy
   : Expand to sinking markets with existing brand influence
3. Product innovation
   : Develop new products that meet Chinese consumers’ tastes to maintain market freshness
4. Brand marketing
   : Strengthen penetration into young consumer groups and enhance brand vitality

: The data in this article mainly comes from market research institutions such as Euromonitor, Qince Consumer Research, and Zhuoshi Consulting [1][2], as well as the industry research report of Soochow Securities [3].

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:

[1] 2025 China Sugar-Free Tea Industry Report: From High Growth to Structural Optimization and Brand Differentiation (https://www.fxbaogao.com/detail/5123742)

[2] China Sugar-Free Tea Industry Report: Oriental Leaf Becomes Nongfu Spring’s Top Revenue Category (https://m.36kr.com/p/3529876362762629)

[3] In-depth Report on Food and Beverage Industry: In-depth Report on Soft Drink Industry (https://pdf.dfcfw.com/pdf/H3_AP202508211731875717_1.pdf)