Analysis Report on Continuous Revenue Decline of Biyuan Changrun Tea: Can Sugar-Free Tea New Products Reverse the Brand Aging Dilemma?

According to the latest financial data, Biyuan Holdings Limited faced severe operational challenges in 2024.

, showing a continuous downward trend compared to previous years. From the revenue composition perspective, tea product revenue fell to 326 million yuan, accounting for 67.3% of total revenue; weight loss and other pharmaceutical revenue was 158 million yuan, accounting for 32.7%[1].

Year	Tea Product Revenue (100 million yuan)	Weight Loss Product Revenue (100 million yuan)	Total Revenue (100 million yuan)	YoY Change
2020	5.80	0.50	6.30	—
2021	5.20	0.80	6.00	-4.8%
2022	4.50	1.10	5.60	-6.7%
2023	3.80	1.40	5.20	-7.1%
2024	3.26	1.58	4.84	-6.9%

Data shows that tea product revenue has declined for five consecutive years, with an average annual decrease of over 10%. Once upon a time, Biyuan became well-known across the country with advertising slogans like “Quickly give your intestines a bath” and “Whoosh, don’t be too thin”, and Changrun Tea almost became synonymous with laxative tea[1]. However, with changes in the market environment and consumption upgrading, this once-glorious brand is facing a serious brand aging problem.

Biyuan’s brand aging dilemma stems from the superposition effect of multiple factors:

• Product Level:
  • Severe product line simplification: Over-reliance on traditional tea products, lack of innovative product matrix
  • Single functional positioning: Changrun Tea and weight loss tea dominate, lack of products for emerging consumption scenarios
  • Outdated packaging design: Difficult to attract the aesthetic preferences of young consumer groups

• Brand Level:
  • Solidified brand image: Consumer perception stays at “mom-level products”, low recognition among young consumers
  • Lagging marketing strategy: Traditional TV advertising is the main focus, insufficient digital marketing and social media operation capabilities
  • Insufficient brand vitality: Lack of emotional connection and interaction with young consumers

• Channel Level:
  • Dependence on traditional channels: High proportion of KA stores and pharmacy channels, insufficient layout of convenience stores and e-commerce channels
  • Outdated terminal display: Significant gap in shelf display and terminal image compared to competitors
  • Aging dealer system: Insufficient channel vitality and innovation motivation

China’s tea beverage market is undergoing profound changes. The sugar-free tea category is growing rapidly, with brands like Dongfang Shuye (Oriental Leaf), Suntory, Nongfu Spring, and Genki Forest dominating, accounting for more than 75% of the total market share. These brands continue to invest in product innovation, brand marketing, channel expansion, etc., forming strong competitive barriers.

Biyuan faces both

in the sugar-free tea market:

Opportunity Factors	Challenge Factors
Rapid growth of sugar-free tea market size	Leading brands have obvious first-mover advantages
Continuous strengthening of healthy consumption trends	Difficult to differentiate products
Herbal tea has room for differentiated positioning	Brand perception needs to be reshaped
Original channel resources can be reused	Marketing investment requires a lot of funds

The strategic logic of Biyuan launching sugar-free tea new products is reasonable:

• Comply with market trends: Sugar-free tea conforms to the general direction of healthy consumption upgrading
• Expand product line: Reduce reliance on traditional tea products
• Brand rejuvenation: Reshape brand image through new categories

Whether sugar-free tea new products can succeed depends on the following key factors:

• Highlight the professional advantages of herbal tea, avoid direct competition with leading brands
• Strengthen functional positioning, combine original brand assets such as intestinal health
• Develop unique flavors and experiences to meet segmented needs

• Hire young spokespersons to reshape brand image
• Strengthen social media operations to enhance brand activity
• Cross-border co-branding and IP cooperation to expand brand influence

• Increase investment in e-commerce channels to improve the proportion of online sales
• Expand convenience store channels to optimize channel structure
• Enhance terminal image to strengthen consumer reach

• R&D investment supports product innovation
• Marketing budget supports brand promotion
• Channel fees support terminal expansion

• Market Risk:
  The sugar-free tea market is highly competitive, leading brands have obvious advantages, and new entrants face greater pressure
• Brand Risk:
  Original brand assets may become a burden for new product promotion, making it difficult to break consumers’ inherent perception
• Financial Risk:
  Revenue decline may affect the resource investment capacity for new product promotion
• Operational Risk:
  Business transformation requires time and continuous investment, which is difficult to take effect in the short term

• High brand awareness, with national memory[1]
• Changrun Tea has loyal consumers, high brand loyalty
• Deep accumulation of herbal tea R&D experience and supply chain resources
• Listed company platform has certain capital operation capabilities

• Brand image aging, low recognition among young consumers
• Single product line, over-reliance on traditional tea products
• Relatively insufficient innovation capability, slow product iteration speed
• Lagging e-commerce channel layout, digital capabilities need to be improved

• Continuous rapid growth of sugar-free tea market size
• Continuous strengthening of healthy consumption trends
• Aging society promotes demand for intestinal health products
• Consumption upgrading drives demand for high-end products

• Fierce competition from leading brands, high market concentration
• New-style tea drinks divert young consumers
• Pressure from rising raw material costs
• Risk of regulatory policy changes

1. Accelerate the iteration of sugar-free tea new products: Highlight the differentiated characteristics of herbal tea and quickly respond to market feedback
2. Brand rejuvenation pilot: Select 1-2 young marketing projects for pilot
3. E-commerce channel breakthrough: Increase investment in e-commerce operations to improve the proportion of online sales

1. Improve product matrix: Establish a complete product line covering different price ranges and consumption scenarios
2. Comprehensive brand upgrade: Systematic brand rejuvenation reshaping
3. Optimize channel structure: Improve the proportion of convenience store and e-commerce channels

1. M&A integration opportunities: Consider acquiring mature sugar-free tea brands to quickly enter the market
2. Functional product R&D: Develop functional sugar-free tea products combining herbal advantages
3. International layout: Explore overseas market opportunities

In the short term, sugar-free tea new products are difficult to completely reverse the revenue decline trend. The decline trend of traditional tea products will continue, and new product cultivation takes time. It is expected that revenue will still face downward pressure in 2025, but the decline is expected to narrow.

In the medium term, if Biyuan can effectively promote strategic transformation, sugar-free tea new products are expected to form large-scale sales within 3-5 years and become a new growth engine. It is expected that by 2027, the revenue proportion of sugar-free tea products will reach 20-30%.

In the long term, whether Biyuan can regain growth momentum depends on the continuity and effectiveness of strategic execution. In the fierce market competition, Biyuan needs to show sufficient strategic determination and execution to achieve brand renewal and rebirth.

Biyuan faces high uncertainty; investors need to closely monitor its new product market feedback, channel transformation progress, and changes in financial status, and make decisions cautiously.

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[1] Yahoo Finance - “From ‘Magic Tea’ to Weight Loss Pills: Can Biyuan Return to Glory?” (https://hk.finance.yahoo.com/news/從-神茶-到減肥藥-碧生源能否重返榮耀-233253092.html)