---
title: "This Generation of Young People Is Abandoning Sugary Drinks"
description: "Xiao Zhang, a small supermarket owner, has seen his shelves' prime cold-display spots taken over by sugar-free products from major brands like Master Kong, Uni-President, Oriental Leaf, Suntory, and Guozishule. Sugary drinks that once sold well are now relegated to corners. \"No choice, most young people now want sugar-free tea, it's like following a trend,\" Xiao Zhang explains. Young people who once relied on \"adding sweetness to life\" are now quitting sugar, and even tea shops are launching sugar-free options. On June 3, 2024, Heytea introduced new low-burden drinks and announced a \"fruit tea sugar control plan.\" According to data, the sugar-free ready-to-drink tea market share nearly doubled from 16% to 32% in 2023, with a growth rate of 110%. By 2024, sugar-free tea has surpassed sugar-free soda to dominate the sugar-free beverage market."
author: "林小白"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2024-07-19"
language: "en"
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# This Generation of Young People Is Abandoning Sugary Drinks

> Xiao Zhang, a small supermarket owner, has seen his shelves' prime cold-display spots taken over by sugar-free products from major brands like Master Kong, Uni-President, Oriental Leaf, Suntory, and Guozishule. Sugary drinks that once sold well are now relegated to corners. "No choice, most young people now want sugar-free tea, it's like following a trend," Xiao Zhang explains. Young people who once relied on "adding sweetness to life" are now quitting sugar, and even tea shops are launching sugar-free options. On June 3, 2024, Heytea introduced new low-burden drinks and announced a "fruit tea sugar control plan." According to data, the sugar-free ready-to-drink tea market share nearly doubled from 16% to 32% in 2023, with a growth rate of 110%. By 2024, sugar-free tea has surpassed sugar-free soda to dominate the sugar-free beverage market.

Xiao Zhang is a small supermarket owner. This summer, the prime cold-display spots on his shelves have been filled with sugar-free products from major brands like Master Kong, Uni-President, Oriental Leaf, Suntory, and Guozishule. Previously popular sugary drinks are now relegated to corners. "No choice, most young people now want sugar-free tea, it's like following a trend," Xiao Zhang explains. Young people who once relied on "adding sweetness to life" are now quitting sugar, and even tea shops are launching sugar-free options. On June 3, 2024, Heytea introduced new low-burden drinks and announced a "fruit tea sugar control plan." According to data from Mayangying Intelligence, the sugar-free ready-to-drink tea market expanded significantly in 2023, with its share nearly doubling from 16% to 32%, a growth rate of 110%. According to a Nielsen forward-looking report, by 2024, sugar-free tea has surpassed sugar-free soda to dominate the sugar-free beverage market. After years of silence, the sugar-free tea market has finally seen explosive growth. It's clear that from the viral popularity of Oriental Leaf last year to the collective "sugar control" in the tea beverage market, the beverage industry is gradually shifting from "sugary" to "low-sugar" to "sugar-free."

**The 'Wronged' Sugary Drinks**
Xiaomei, born after 1995, was diagnosed with type 2 diabetes during a physical exam. Like many internet company workers, Xiaomei's daily routine involves long hours of sitting, ordering takeout for every meal, and frequent overtime. She and her colleagues often drink beverages instead of water, and occasionally have coffee or milk tea to "keep going." "I never thought I'd get diabetes; I always thought it was a disease for middle-aged and older people," Xiaomei says. According to relevant data, over the past 40 years, the prevalence of diabetes among people aged 18 and above in China has continued to rise, reaching 11.2%. This has directly led to more and more young people becoming wary of sugar. The "Dietary Guidelines for Chinese Residents (2022)" states that residents should control their intake of added sugar, not exceeding 50g per day, and ideally keeping it below 25g per day. Excessive sugar intake is increasingly becoming a major factor affecting health, especially the frequent occurrence of obesity and diabetes, which has attracted global attention and prompted countries to take measures to strengthen sugar control. As a significant source of sugar, the beverage industry is under unprecedented scrutiny. In recent years, many bloggers and platforms have tested the sugar content of various popular sugary drinks.

Data source: New Fire Food Industry

Based on the above data, most bottled drinks on the market easily exceed the 25-gram threshold for sugar content per bottle, especially 500ml cola, which contains up to 53 grams of added sugar, far exceeding the recommended amount in the Dietary Guidelines. In some beverages, sugar accounts for a staggering proportion, ranging from 10% to 13%. These high-sugar drinks are quickly absorbed by the body, posing significant health risks. In fact, the state proposed "three reductions" years ago, in the order of reducing salt, oil, and sugar. In July last year, some supermarkets in Jiading District, Shanghai, took the lead in marking sugary drink areas with "red, orange, and green" labels. This initiative stems from the "Implementation Plan for Pilot Application and Effect Evaluation of Health Warning Labels for Sugary Drinks" formulated by the Shanghai CDC, which selected 159 pilot supermarkets and stores across multiple districts and counties to conduct a survey on sugary drinks. Although these are just simple warning messages, they may influence consumers' purchasing decisions. In this red ocean market, giving special attention to sugary categories inevitably raises discussions about fair competition and is interpreted by public opinion as a hidden market bias. If sugary drinks are indeed a health hazard, they could be strictly controlled at the source by setting thresholds in the production process, rather than interfering at the sales end. This approach seems somewhat contradictory, neither fully prohibiting nor completely letting go, raising questions about its effectiveness and intent. "Sugary drinks" have also been pushed into an awkward position publicly.

After all, the sugar we consume daily comes not only from beverages but also from other foods. No restrictions or labels have been placed on other products, yet beverages are the first to be targeted. This makes sugary drinks seem quite "wronged." It is precisely under such circumstances that more and more consumers are choosing various sugar-free beverages. According to data from iiMedia Research, the market size of China's sugar-free beverage industry grew year by year from 2015 to 2022, increasing from 2.26 billion yuan to 19.96 billion yuan, and is expected to reach 61.56 billion yuan by 2025.

**The 'Sugar Control War' Begins**
"In our stocking this year, sugar-free tea has already surpassed sugary drinks," says Xiao Zhang. According to Nielsen's latest 2024 China Beverage Industry Trend Report, in 2023, the sugar-free beverage market expanded at an astonishing pace, with total scale jumping to 24.1 billion yuan, of which sugar-free soda and sugar-free tea accounted for 38% and 49% of the market share, respectively. Notably, sugar-free tea beverages achieved an annual growth rate of 110%. Image source: Oriental Leaf official Weibo

As one of the industry leaders, Nongfu Spring's tea beverage business achieved leapfrog growth in 2023. According to its public data, its annual revenue reached 12.659 billion yuan, a year-on-year increase of 83.3%, accounting for nearly 30% of the company's total revenue. Although it did not directly disclose the specific performance of its star brand "Oriental Leaf," market insiders, combining market trends and industry analysis, estimate that Oriental Leaf's sales revenue achieved strong growth of over 100% in 2023, with a compound annual growth rate of over 90% in the past three years. Market observers predict that with the current high-speed growth trend, Oriental Leaf is expected to become another single product with annual sales revenue exceeding 20 billion yuan under Nongfu Spring by 2026. The popularity of Oriental Leaf not only activated the market vitality of old brand sugar-free tea beverages but also spurred the rapid rise of new players such as Guozishule, Rangcha, and Chaxiaokai. According to data, the number of new sugar-free tea products surged from 93 in 2022 to 157 in 2023. In 2024, the sugar-free tea field is witnessing a "thousand sails competing" spectacle. At the recent Spring Sugar and Wine Fair, new sugar-free tea products filled various display cabinets like mushrooms after rain, with established players, cross-industry newcomers, local traditional brands, and emerging forces all vying for a foothold. According to media statistics, in 2023, there were 157 sugar-free ready-to-drink tea single products nationwide, of which new products accounted for nearly half, with 64. According to incomplete statistics, in 2024, various brands have successively launched more than 30 new products. It is undeniable that the "sugar control war" in the tea beverage industry has quietly begun.

However, the hot weather has also directed the first shot of the "involution" in sugar-free tea towards a price war. According to a recent report by Consumer Watch, the price war for sugar-free tea drinks is intensifying in convenience stores and supermarkets across Guangzhou. Coca-Cola's Chunchashe attracted attention with a flash sale price of 2.99 yuan, while Suntory's Osmanthus Oolong also offered a friendly unit price of 3.9 yuan. According to Mayangying Brand CT data, from April to May 2024, in the sugar-free ready-to-drink category, the average price of several hot-selling SKUs (excluding products below 500ml) was significantly lower than the market median price. Among them, Rangcha's high-mountain oolong, jasmine tea, and osmanthus oolong in 500ml bottles saw average prices drop by 14.62%, 14.03%, and 11.48% respectively compared to the all-format median price. Meanwhile, Guozishule's 970ml jasmine Longjing tea with jasmine flavor saw an average price drop of 9.53%, and golden osmanthus oolong, zhi zhi oolong, and white tea with cherry blossom flavor saw price reductions of 7.50%, 6.86%, and 6.41% respectively. Based on the price reductions and promotions in the sugar-free tea market, as well as the introduction of large bottles, some industry insiders believe that sugar-free tea is gradually becoming a "water substitute" for consumers, because if calculated by unit price per 100ml, the price of sugar-free tea is indeed infinitely close to bottled water. Due to the simple ingredient list, good taste, and health benefits of sugar-free tea, some "tea lovers" almost reach the point of "only drinking tea, not water." But is "replacing water with tea" scientifically feasible? Is sugar-free tea really healthy?

**Is Sugar-Free Tea Really Healthy?**
The tea beverage market has undergone changes, from sugary to low-sugar, and then to sugar substitutes and zero sugar. Consumers' rejection and control of sugar intake has become a trend, indicating that sugar-free tea drinks are becoming a new trend in healthy consumption. According to relevant statistics, in 2023, searches for "less oil," "less salt," and "less sugar" on food delivery platforms surged, with "less sugar" seeing the most significant increase of 901%. On social media, notes about "sugar control" have exceeded one million. Image source: Beijing News

In reality, some merchants, while claiming to be "sugar-free," "low-sugar," or "zero calorie," have vague ingredient labels that mislead consumers. In particular, "no sucrose" is often misunderstood as sugar-free. Faced with a dazzling array of "health labels" on packaging, such as "0 sugar," "0 sucrose," and "sugar substitutes," many people are confused. So, what are the differences and similarities among these sugars? For "0 sugar" foods or beverages, according to China's national food safety standard "General Rules for Nutrition Labeling of Prepackaged Foods," "0 sugar" means that the sugar content per 100 grams or 100 milliliters of solid or liquid food is no higher than 0.5 grams. Thus, sugar-free drinks, as the name implies, only have relatively low sugar content and are not equivalent to completely sugar-free or calorie-free. It is worth noting that foods or drinks labeled "0 sucrose" only indicate that no sucrose has been added, but they may contain other sources of sugar, such as high-fructose corn syrup, fructose, honey, and concentrated fruit juice, so they are not equivalent to sugar-free or low-sugar products. As for why sugar-free drinks still taste sweet, this is mainly due to the use of sugar substitutes. For example, artificial sweeteners like aspartame and acesulfame potassium are much sweeter than traditional sucrose, so even a very small amount can bring a significant sweet sensation, greatly reducing the calorie content of the product.

Data source: Consumer Reports

Additionally, according to the results of a test conducted by Consumer Reports on the beneficial ingredient content of 12 sugar-free tea drinks on the market, the content of "tea polyphenols and caffeine" in the nutrition facts of sugar-free tea drinks is particularly prominent. Tea polyphenols, the essence of tea, encompass a variety of polyphenolic compounds and have multiple health benefits such as antioxidant, anti-cancer, lipid-lowering, blood sugar-lowering, and antibacterial and antiviral effects. Caffeine, as a natural stimulant in tea, can refresh the mind, especially in black tea and oolong tea. However, healthy consumption requires moderation. In 2023, the European Union set a daily intake limit of 800mg for EGCG, a key component of tea polyphenols, to ensure safety. Excessive caffeine intake is also not advisable, as it may cause insomnia and palpitations. For special groups such as children and pregnant women, caffeine intake should be controlled. In summary, it can be seen that with the market explosion, sugar-free tea drinks are moving towards a "water substitute" market position, but from a health perspective, consumers should still primarily drink water in their daily lives, with sugar-free tea as a supplement, to ensure balanced nutrition and good health. And after the trend of sugar reduction and zero sugar, sugar-free tea should perhaps think more about its own true functionality.

**Conclusion**
Industry insiders believe that the penetration rate of China's sugar-free tea market is still in its infancy. With the prevalence of sugar reduction trends and the deepening of healthy eating concepts, multiple favorable factors are superimposed, indicating that the vigorous development of the sugar-free tea beverage industry will continue to accelerate in the next 2 to 3 years, ushering in a period of rapid scale expansion. However, July has arrived, which is not only a signal of the arrival of midsummer in nature but also a prelude to the smoke of war in the beverage industry. For the continued heating up of the sugar-free tea track, the good show is just beginning. From August 20 to 22, 2024, the "2024 6th China FMCG Conference" with the theme "Crossing the Era of Shrinkage," along with the "3rd China FMCG Hard Discount Conference" and the "3rd China FMCG Distributor Conference," will be grandly held in Shanghai. At this conference, all roles in the FMCG industry chain will gather, allowing you to grasp industry trends at a glance, understand hot track indicators, penetrate industry resources, and precisely connect with first-line brand owners, head retail platforms, and excellent large distributors with over 100 million in sales nationwide, providing you with precise decision-making, efficient cooperation opportunities, and on-site learning of exclusive methodologies from FMCG giants! Keynote speeches, roundtable dialogues, report interpretations, closed-door salons, and networking dinners—this thousand-person event is sure to have something for you!


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