The Dilemma of China's Tea Industry: Having Categories but No Brands

Chinese consumers prioritize the tea's origin over brand when purchasing it. Regional tea categories like West Lake Longjing, Yunnan Pu'er, and Wuyi Rock Tea are deeply ingrained in consumers' minds, while nationally recognized brands are virtually nonexistent. There are over 1.64 million tea-related enterprises nationwide, with over 70,000 being small and medium-sized workshops. In 2024, the top five brands (CR5) in the high-end tea market held only about 5.6% of the market share, with Bama being the only brand to surpass 1%, achieving a 1.7% share that made it the industry leader. Trying to offer a full range of tea categories leads to brand blurring, while focusing on a single category results in being tied to that category-Bama's strategy of offering six major tea categories resulted in "having everything but not standing out," while Lancang's deep reliance on Pu'er tea led to its collapse after the financial bubble burst.