As consumption evolves and new consumption scenarios emerge, tea brands can leverage innovative marketing strategies to establish standards, build brands, and develop professional supply chains targeting the new generation of consumers. Another domestic tea brand has entered the Hong Kong stock market. BAMA TEA, a chain tea brand, recently listed on the Hong Kong Exchange. On its second trading day, the stock price reached HKD 104.5 per share, doubling its IPO price. Currently, there are three listed tea companies in China's capital market: BAMA TEA, LANCANG TEA (06911.HK), which listed in 2023, and TENFU (06868.HK), which went public in 2011.

According to prospectuses, franchisees contribute the majority of BAMA TEA's revenue, while the other two listed tea companies also rely heavily on offline stores for sales. Financial reports from the latter two show declining performance in recent years due to sluggish sales at physical tea stores. However, with the rise of new markets such as freshly made tea beverages and sugar-free ready-to-drink teas, tea brands are exploring fresh growth opportunities.

**Sluggish Sales at Tea Stores** Public data reveals that BAMA TEA is a leading tea supplier and chain store brand in China, founded in 1997 in Shenzhen by brothers Wang Wenbin, Wang Wenli, and Wang Wencha. Its product range covers oolong tea, dark tea, red tea, and other varieties. As of the first half of this year, BAMA TEA operates 3,585 offline chain stores nationwide, including 3,341 franchised outlets. LANCANG TEA primarily sells Pu'er tea, while TENFU offers a wide range of tea categories. Similar to BAMA TEA, their products are mainly distributed through physical stores.

China is a major producer and consumer of tea, but sales have long relied on offline dealer channels. Industry insiders note that tea companies leverage local connections and resources of dealers to expand into unfamiliar markets. However, physical stores are also more vulnerable to shifts in consumption trends.

Since last year, both LANCANG TEA and TENFU have reported declining performance, citing weak consumer demand and challenges in offline store sales. In 2024, LANCANG TEA's revenue fell 31.48% year-on-year to RMB 360 million, with a net loss of RMB 300 million, down 484%. The downward trend continued in the first half of 2025. The company attributed the revenue decline to slow market recovery, weak consumption affecting physical stores, and competition from e-commerce and live-streaming sales. Additionally, generic products have gained market share due to competitive pricing, further impacting branded tea sales.

TENFU’s performance decline was milder, with 2024 revenue dropping 9.89% to RMB 1.56 billion and net profit falling 34.87% to RMB 139 million. The downward trend persisted in the first half of this year.

From 2022 to 2024, BAMA TEA maintained year-on-year growth in revenue and net profit. In 2024, its revenue reached RMB 2.143 billion, with a net profit of RMB 224 million and a net profit margin of 10.5%. Franchisee sales accounted for 50.9% of total revenue. However, in the first half of this year, revenue declined 4% to RMB 1.063 billion, while net profit fell 17.8% to RMB 120 million.

**Seeking New Growth Opportunities** According to Frost & Sullivan, China's tea market grew from RMB 288.9 billion in 2020 to RMB 325.8 billion in 2024, with a compound annual growth rate of 3%. It is projected to reach RMB 407.9 billion by 2029.

Despite numerous well-known brands—such as Dayi Tea, Xiaoguan Tea, and century-old brands like Zhangyiyuan and Wuyutai—revenue scales remain small. In 2024, LANCANG TEA, TENFU, and BAMA TEA collectively generated RMB 4.067 billion in revenue, accounting for just 1.2% of the total market.

Luo Xianliang, Vice President of Ries China, noted that the low market share of leading tea companies stems from the lack of clear, consistent standards. Current tea standards focus more on production rather than consumption, leaving consumers without a unified benchmark for quality. Establishing consumer-recognized standards for tea categories is key to brand-building and simplifying consumer choices.

With the rise of e-commerce and shifting consumer demographics, tea brands are exploring new growth avenues. Leading companies are expanding online sales to reduce reliance on offline dealers. Meanwhile, the booming young consumer market has spurred the emergence of new tea brands like Bawang Chaji and Mixue Bingcheng, alongside rapid growth in the sugar-free ready-to-drink tea segment.

E-commerce is BAMA TEA’s second-largest revenue source, with direct online sales contributing 23.6% of 2024 revenue, while sales to e-commerce platforms accounted for 8.6%. LANCANG TEA has also seen growth in large-client channels, including membership supermarkets and tea beverage manufacturers. In 2024, its large-client channel revenue surged 173% to RMB 54 million. In the first half of 2025, despite a 71.5% decline in offline dealer sales, large-client channel sales grew 103.7%.

Industry data shows that the tea industry drives a trillion-yuan consumer market, including traditional loose-leaf tea (RMB 350 billion), liquid tea beverages (RMB 125 billion), new-style tea drinks (RMB 354 billion), deep-processed and health products (RMB 120 billion), and tea-related tourism (RMB 100 billion). Experts suggest that evolving consumption trends and new scenarios present opportunities for tea brands to adopt modern marketing strategies, establish standards, and build professional supply chains for the next generation of consumers.