---
title: "After the Hype, Sales Slip: Is the Rollercoaster Ride of Birch Water a Collective Dilemma for Niche Beverages?"
description: "Birch water beverage sales have plummeted. According to Chanmama data, the leading brand Linyuanchun's monthly sales on Douyin, after briefly maintaining over 10 million yuan from April to July, have continued to decline, dropping to over 5 million yuan by September. Its ranking has also fallen from No. 1 in the beverage category in April to No. 71 currently. Linyuanchun is not the only one facing declining sales; brands such as Zhongzhi, Jiahua, and Baihuayiran have also seen double declines in category ranking and sales since April. The attention on birch water beverages has also declined after peaking."
author: "FBIF"
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published: "2024-10-26"
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---

# After the Hype, Sales Slip: Is the Rollercoaster Ride of Birch Water a Collective Dilemma for Niche Beverages?

> Birch water beverage sales have plummeted. According to Chanmama data, the leading brand Linyuanchun's monthly sales on Douyin, after briefly maintaining over 10 million yuan from April to July, have continued to decline, dropping to over 5 million yuan by September. Its ranking has also fallen from No. 1 in the beverage category in April to No. 71 currently. Linyuanchun is not the only one facing declining sales; brands such as Zhongzhi, Jiahua, and Baihuayiran have also seen double declines in category ranking and sales since April. The attention on birch water beverages has also declined after peaking.

Birch water beverage sales have plummeted.
According to Chanmama data, the leading brand Linyuanchun's monthly sales on Douyin, after briefly maintaining over 10 million yuan from April to July, have continued to decline, dropping to over 5 million yuan by September. Its ranking has also fallen from No. 1 in the beverage category in April to No. 71 currently.
Image source: Linyuanchun
Linyuanchun is not the only one facing declining sales. Brands such as Zhongzhi, Jiahua, and Baihuayiran have also seen double declines in category ranking and sales since April.
The attention on birch water beverages has also declined after peaking. Baidu Index shows that the search index for the keyword "white birch" (domestic birch water beverages are mainly white birch water beverages) rose significantly from March, peaked in early April, and then began to decline. Currently, the Baidu search index for "white birch" is close to the level before March this year.
Birch water beverages are one of the contenders in the health food and beverage track. Compared with other categories, birch water beverages have uniqueness: the raw material is derived from tree sap, with natural sweetness and woody aroma, making it one of the natural water substitutes close to water. It is also known as "forest-style special blend" and "the ceiling of the refreshing category."
But its disadvantages are equally obvious: on the supply side, raw material supply is limited and production costs are high; on the consumer side, there is a lack of broad product awareness. However, this is not a problem unique to birch water beverages.
Some Chinese-style health waters, and even unsweetened tea in its early days, encountered similar problems (unsweetened tea was a niche category in China in its early days, and Oriental Leaf suffered losses for seven consecutive years after its launch).
To a certain extent, the sales performance of birch water beverages reflects the collective dilemma of "niche beverages": **low market awareness, limited audience, unstable category popularity, and brands have less ability to diversify risks and are more prone to performance fluctuations.**
But niche products are not unable to escape the dilemma.
**Birch Water Beverages**
**"On a Rollercoaster"**
**1. "Liquid Gold" vs. "IQ Tax": Birch Water Beverages in Controversy**
"I heard that birch sap can eliminate lung nodules." Plantagoly decided to try it to see if birch water beverages could improve nodules.
In 2023, after drinking birch water beverages for half a year, Plantagoly posted on Xiaohongshu that "the lung nodules have shrunk from 5mm to 2-4mm." Despite comments pointing out that "results from different hospitals and different instruments may have errors," Plantagoly still decided to continue drinking.
Plantagoly is not an isolated case. Even though the efficacy circulated online lacks clear proof from brands and proposers, and there is no detailed scientific research, many consumers still regard birch water beverages as "liquid gold" and consume them for the "efficacy."
But on the other hand, doubts about birch water beverages have already emerged.
"If a product can cure all diseases, shouldn't we consider its authenticity?" Some netizens believe that without widespread recognition from the medical community, the medical value of birch water beverages should not be promoted by consumers, nor should it be used as a specific medicine.
Some netizens suspect they are victims of birch water beverages, speculating that their gout recurrence may be related to drinking birch water beverages.
Netizens have mixed opinions, and some media guide consumers to view birch water beverages rationally. For example, People's Daily Science Popularization shows that birch water beverages have low vitamin content, and other nutrient contents are not outstanding; "the biggest effect is to replenish water." [1]
On social media, discussions about whether "birch water beverages are an IQ tax" are becoming more intense.
**2. Sales of Birch Water Beverages Fluctuate Significantly**
Amid the controversy, the sales trend of birch water beverages shows obvious fluctuations.
Linyuanchun has a market share of 70% in the birch water beverage market. [2] Taking it as an example, Chanmama data shows that entering 2024, Linyuanchun's monthly sales rose rapidly. In April and May, it successively entered the No. 1 and No. 2 positions in the Douyin beverage category ranking, with monthly sales reaching over 10 million yuan.
Linyuanchun's Douyin sales trend this year
Image source: Chanmama
But since then, Linyuanchun's category ranking has plummeted, and monthly sales have continued to decline. Even in August, during the peak beverage sales season, sales still fell to over 5 million yuan. As of the time of writing, Linyuanchun's ranking in the Douyin beverage category has dropped to No. 71, with completed sales for the current month at over 1 million yuan (data from October 1 to October 15).
Not only Linyuanchun, but also brands such as Zhongzhi, Jiahua, and Baihuayiran have experienced significant fluctuations in sales of birch water beverages, and since April, they have successively seen double declines in ranking and sales.
Jiahua's Douyin sales trend this year
Image source: Chanmama
Zhongzhi's Douyin sales trend this year (Zhongzhi is a multi-category brand, with birch water beverage sales accounting for the highest proportion of the brand's total Douyin sales, over 40%)
Image source: Chanmama
Baihuayiran's Douyin sales trend this year
Image source: Chanmama
**3. Sales and Brand Promotion Efforts Rise and Fall Together**
There is a clear correlation between the sales of birch water beverages from major brands and their marketing promotion intensity.
Taking Linyuanchun as an example, the period from April to July when brand Douyin sales surged was also the period when the number of brand promotion influencers and live streaming sessions soared. The weakening of brand promotion from August to September corresponds to the lower sales during that period.
In addition, Linyuanchun's total Douyin sales this year have reached over 75 million yuan, of which influencer account sales account for 52.71%, with over half of the brand's sales contributed by influencers.
Using paid traffic to improve brand competitiveness is a common practice in the industry. But the reduction in promotion influencers and the decrease in brand promotion intensity, which immediately leads to a sharp drop in sales, also reflects on another level that the birch water beverage business is not easy to do, and the brands launching birch water beverages are not yet mature.
**The World Has Its Eyes on Birch Water Beverages**
**1. Birch Water Beverages Have Been Around for a Long Time, but No Leading Brand Has Emerged**
Birch water beverages have indeed become popular in China this year. In fact, drinking birch water as a beverage is not new. As early as the 20th century, birch water beverages appeared in the Soviet retail market. [3] However, the category still has not produced a leading brand.
Looking at the global market, many countries have "bet" on birch water beverages. Around 2014, birch water beverages attracted attention in European and American markets, with brands such as Sibberi, B-Tree, and Treo entering the market one after another, exploring product flavors, efficacy, and concept innovation.
Among them, Sibberi launched 100% pure birch sap, positioned as a high-end, niche product, priced at £2.49 per bottle (approximately 23.09 yuan per bottle). Co-founder Vaisse believes that for consumers, Sibberi is extremely low in calories and is a "guilt-free daily drink." [4]
Image source: Sibberi
In 2015, Sibberi was launched in the UK and entered channels such as Waitrose (positioned as a high-end supermarket), Whole Foods Market, and Vital Ingredient (a custom salad chain). That year, UK birch water beverage sales grew, and Vaisse predicted that other tree water beverages would also be welcomed by the market, so Sibberi successively launched maple water and bamboo water beverages.
After that, reports about Sibberi decreased. In 2017, Sibberi was acquired by mineral salt company Westlab. According to Owler data, Sibberi's current annual sales are around $1.5 million. [5]
B-Tree is headquartered in the UK, with birch water collection and production in the EU. Compared with Sibberi, B-Tree has a more segmented target customer base: its original flavor birch water beverage is for hydration; peppermint flavor is for those who enjoy refreshing tastes; and the L-carnitine-rich birch water beverage is for those pursuing athletic performance and body shaping.
B-Tree emphasizes "super hydration" and "energy replenishment," associating the product with sports scenarios, with gyms and fitness clubs as key distribution channels.
B-Tree's development has not been smooth; since its establishment in 2014, it lasted 9 years. In 2023, the B-Tree team disbanded.
Treo was founded in the US in 2016, with five signature flavors including blueberry, strawberry, kiwi watermelon, and others.
Treo focuses on palatability, using a combination of fruit juice and birch water, sweetened with erythritol, to maintain low calories while having sweetness and fruit aroma. In 2024, Treo's strawberry flavor birch water beverage was rated as the "best-tasting beverage" by Tasting Table, a food and cooking website.
Image source: mashed
Treo aims to replace bottled water and sugary drinks. According to public reports, Treo has received three rounds of financing. Among them, in 2020, it raised $5 million and achieved sales in over 15,000 retail stores nationwide, including 4,300 stores added through cooperation with PepsiCo. [6]
In addition, brands such as SULA, BIRZI, and Buddha Water have also made attempts in emotional value (letting consumers experience the charm of nature by drinking birch water), category innovation (adding alcohol, etc.), and form innovation (making concentrates).
Overall, although there are many participants in the global birch water beverage market, and it has developed for more than ten years, the market size is not large. According to data from market research company The Business Research Company, the global birch water beverage market size in 2024 is only $1.47 billion.
The domestic birch water beverage market performance is also not outstanding. The leading brand Linyuanchun, even with a market share of about 70% and having sold birch water beverages since its inception (2007), had low brand awareness and sales before 2024. Chanmama data shows its monthly Douyin sales mostly fluctuated below 1 million yuan.
**2. Reasons for the Commercialization of Birch Water**
The reasons why brands worldwide have entered the birch water beverage market are not complicated.
From a market background perspective, Europe and the US, and then China, have successively seen growth in demand for water substitutes. Birch water is very similar to water in taste and texture, with low calories and sugar content, making it one of the natural water substitutes close to water.
On the other hand, natural ingredient beverages have attracted attention in the global market. Imarc data shows that the global coconut water market size reached $7.5 billion in 2023. Coconut water has successfully proven its potential in the global beverage market.
Birch water is similar to coconut water, collected from trees, with similar taste and flavor, so birch water beverages are also expected by the market, with the saying "the next coconut water" both domestically and internationally.
From the consumer side, tree water beverages are not common. Currently, the tree species that can efficiently produce sap and are suitable for beverages are mainly birch, maple, and walnut. Birch water beverages, as one of the few beverages with natural woody aroma and sweetness, can provide consumers with a unique drinking experience, earning evaluations such as "forest-style special blend," "crisp taste," and "the ceiling of the refreshing category."
In addition, birch water contains various amino acids and vitamins, and many domestic and foreign consumers believe that birch water beverages have certain benefits and are willing to pay for health.
From the supply side, in addition to some brands meeting consumer demand, many participants decide to launch birch water beverages based on their own resource advantages or needs.
For example, Finland is one of the world's largest timber exporters. Supplier Nordic Koivu initially decided to commercialize birch water based on the idea of "not wanting to see more Finnish birch trees cut down," to extend the planting time of birch trees in a sustainable way. [7]
Company partner Susanna Maaranen once said that bottling and selling birch water in Finland had no precedent or consumer market in the early days. "We had to develop commercial processes and technologies and actively seek export markets." To this end, Nordic Koivu entered the global market to promote birch water beverages. [7]
SAP! was founded based on the founder's forestry resources and the desire to develop value-added business.
Image source: TRENDHUNTER
According to SAP!'s official website, one of the reasons for the brand's creation is that co-founders Chas Smith and Nikita Salmon's families have long been engaged in forestry, including the maple industry. The price of American maple water is largely determined by the Canadian maple syrup market, which brings uncertainty to American maple water producers' income.
Chas Smith and Nikita Salmon hoped that the establishment of SAP! could regulate the purchase price of tree water and protect producers' interests. SAP! also received $500,000 in support from the Vermont Farmers and Agriculture Department in its early days. Currently, SAP! has both birch water and maple water product lines.
**How Can Niche Products Carve Out a Future?**
Domestic sales are on a rollercoaster, and overseas development for 10 years has not produced a leading brand. Hidden behind the sales performance of birch water beverages is the common dilemma of niche beverages: low market awareness, limited audience, unstable category popularity, and brands have less ability to diversify risks and are more prone to performance fluctuations.
But the dilemma is not insurmountable.
**1. From "Niche" to "Mass": Oriental Leaf Becomes a Billion-Yuan Single Product**
Oriental Leaf in its early days had a similar narrative to brands launching birch water beverages: as a niche product, the market was blank at launch; the brand faced many challenges during cultivation, with both taste and price sparking discussions; category consumption heat was hard to rise, with several unsweetened tea brands like Chalewang, Yuanye, and Benwei Chazhuang exiting the market, and Oriental Leaf suffered losses for 7 consecutive years.
Image source: Oriental Leaf
From "the worst-tasting beverage" to a billion-yuan single product, Oriental Leaf's successful counterattack is not accidental. The important reason is its ability to continuously adjust and match the most suitable target audience.
In the early days, Oriental Leaf's target audience was not clear. Because the product was sugar-free, sales personnel once limited the target consumers to "people with high blood sugar and high blood lipids who need to resist sugar." [8]
Later, Oriental Leaf adjusted its target audience to freshly brewed tea enthusiasts and middle-aged groups. Obviously, in an era when sugary drinks were mainstream, this group not only had spending power but also had a certain awareness of unsweetened tea, making it easier to shift consumption habits.
This also determined that the overall drinking experience of Oriental Leaf at this stage was infinitely close to freshly brewed tea. On the basis of insisting on using tea extracts rather than flavoring, the product began to solve the problem of quality decline during high-temperature sterilization, the browning of tea soup during storage, and underwent multiple iterations of taste.
Entering 2021, with the improvement of consumers' health awareness and the preference of the new generation for sugar-free products, Oriental Leaf expanded its target audience to include young people, the main consumer group of beverages.
Correspondingly, Oriental Leaf began to emphasize the taste and health attributes of the product and launched popular new products such as Qinggan Puer, Osmanthus Oolong, and Genmaicha. Marketing also saw intensive changes, with the brand penetrating young groups through collaborations with new-generation stars and Bilibili UP masters.
According to the Galaxy Securities food and beverage industry report, the Chinese unsweetened tea market size reached over 20 billion yuan in 2023. Oriental Leaf became the biggest winner in this category. According to Nielsen data, as of July 2024, Oriental Leaf's market share in unsweetened tea exceeded 70%.
**2. Finding a Niche Market: Hint Water Emerged from Silicon Valley**
Overseas sugar-free flavored water brand Hint Water also experienced similar difficulties to brands launching birch water beverages: products with natural plant flavors were not recognized by the mainstream market; category awareness was blank, and the brand had to do market education from scratch; as a startup, it lacked advantages in channels and resources, and had low ability to resist risks.
Hint Water was born in 2004. Founder Kara Goldin had doubts about the ingredients of daily drinks due to gestational diabetes and postpartum body issues. But she didn't want to "drink boring plain water," so Kara Goldin developed Hint Water, a substitute for sugary drinks and bottled water, in her home kitchen. [9]
Image source: Hint Water
Hint Water uses only natural fruit flavoring, is transparent, smells fruity, and tastes close to water but with a subtle fruit flavor.
As one of the world's first sugar-free flavored water brands, Hint Water faced many difficulties at its inception, with no product awareness and a saturated beverage market. Kara Goldin decided to take a different path and open the market through Silicon Valley.
Google was the first Silicon Valley company to try Hint Water. Since then, Hint Water became popular in Silicon Valley through word of mouth, becoming a "regular" at many Silicon Valley companies such as Google, Facebook, Uber, LinkedIn, Spotify, Snap Inc., and Instagram.
Hint Water is also known as the "official drink of Silicon Valley." [10] Google employees even coined the term "Hint Hoarding," meaning every time the company stocks Hint Water, they take a few extra bottles to hoard. LinkedIn even saw the "Hint effect"—because of drinking too much Hint Water, people constantly run to the bathroom. Hint Water also frequently appears in the hit American TV series "Silicon Valley," which is set against the backdrop of Silicon Valley entrepreneurship.
The key to Hint Water winning over Silicon Valley is its strong resonance with Silicon Valley employees.
**First, Hint Water achieved product recognition among Silicon Valley employees.**
Kara Goldin once said bluntly, "In Silicon Valley, staying up late is the norm. They desperately want a healthy, delicious drink that allows them to stay healthy and happy during long working hours." Hint Water's healthy image hit the needs of Silicon Valley employees.
In Silicon Valley, surrounded by caffeine and high-calorie snacks, Hint Water's healthy image is more distinct and unique, making employees feel cared for, thus stimulating consumption desire.
**Second, Kara Goldin gained recognition from Silicon Valley companies for herself and her brand philosophy.**
Kara Goldin is good at highlighting her similarity to Silicon Valley entrepreneurs. In interviews with major American magazines, Kara Goldin often emphasizes that her entrepreneurial journey started in the kitchen (similar to tech giants like Steve Jobs starting in the garage), and that in daily operations, she faces the huge pressure of challenging sugary drink giants, but still "persists in the dream of disrupting traditional beverages, has absolute confidence in the product, and has the patience and perseverance to realize the dream"—consistent with Silicon Valley's entrepreneurial thinking. [11]
**In addition, Kara Goldin also attaches great importance to personal IP building.**
Kara Goldin not only calls invited guests like Apple "disruptors" on her business podcast "The Kara Goldin Show," but also calls herself a "disruptor." By publicly opposing sugary drinks, calling out traditional beverage giants, and urging the federal government to pay attention to drinking water health, she makes the "disruptor" image more deeply rooted in people's minds.
Silicon Valley is undoubtedly the niche market Hint Water found. The support of Silicon Valley consumers made Hint Water's popularity soar. And with the influence of Silicon Valley, Hint Water successfully entered mainstream channels such as Whole Foods Market, Costco, and Walmart, becoming one of the fastest-growing beverage brands in the US, maintaining a growth rate of over 50% annually from 2015 to 2020. [12]
Currently, Hint Water's sales have climbed to $143 million (approximately 1.016 billion yuan). [13]
References:
[1] "The Recently Popular 'White Birch Sap': Can It Really Nourish?", 2024.8, People's Daily Science Popularization
[2] Zhu Zhichong, "Sold 100 Million in 4 Months, Topped Coca-Cola: This 'Northeast Local Specialty' Is Hot", 2024.7, Tianxia Net Merchant
[3] Галина Наркевич, "Родина щедро поила... Сколько стоит березовый сок в мире", 2024.4, mlyn
[4] Ben BOUCKLEY, "Birch tree water brand Sibberi promises first UK launch in December 2014", 2014.12, Beverage Daily
[5] "Water Needs No Middleman: Sibberi Bypasses Labs And Factories To Bring You Thirst-Quenching Hydration Directly From Trees", 2016.1, FRUIT
[6] Brad Avery, "TREO Birch Water Closes $5M Raise", 2020.6, BEVNET
[7] "Birch water: big business?", 2016.6, FINANCIAL TIMES
[8] Lu Yanjun, "From 'the Worst-Tasting Drink' to No. 1 in Unsweetened Tea Market Share: Why Did Oriental Leaf Become Popular?", 2024.3, CBN YiMagazine
[9] "7 Questions with Kara Goldin", 2017.6, Medium
[10] Carlye Adler, "Hint Water: Out to Conquer Vitaminwater — and Obesity Too", 2010.8, TIME
[11] Curtis Silver, "How Hint Water Has Become The De Facto Official Drink Of Silicon Valley", 2017.6, Forbes
[12] Jessi Devenyns, "Flavored-water maker Hint raises $25M in its latest funding round", 2020.8, FOOD DIVE
[13] Data from zoominfo


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