Investor appetite for Chinese fresh drink companies has been saturated following an increase in share offerings, the South China Morning Post reported Tuesday, citing a report by S&P Global Ratings.

The demand for Chinese fresh drinks, which is surging as "growing as fast as marketing, innovation and supply chains strengthen for this segment," could trigger competitive spending and strains, the report said, citing credit analyst Sandy Lim.

The mainland Chinese market for fresh drinks is seen to grow by nearly 18% yearly between 2023 and 2028 and could reach 1 trillion yuan in sales by 2027, the report said, citing S&P.

Among the mainland drink companies that have offered shares include Mixue (HKG:2097), Guming Holdings' (HKG:1364), and Auntea Jenny (HKG:2589) in Hong Kong, and Chagee in the US, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)