Chongqing - Since Aug. 7, when China marked the solar term “Beginning of Autumn,” Chongqing’s coffee and milk tea shops have been flooded with orders. Yet behind the seasonal craze, homegrown beverage brands still struggle to scale up and sustain growth.
People line up to buy milk tea at Guanyinqiao Pedestrian Street, Jiangbei District, Chongqing. (Photo/ He Ziheng)
The viral phrase “the first cup of autumn milk tea” has turned the “Beginning of Autumn” into more than a seasonal marker, making it a cultural ritual and sales driver for China’s beverage industry. Meituan said over 250,000 outlets joined this year’s promotion across the country.
The trend highlights China’s booming beverage market. Milk tea sales topped 100 billion yuan (about $13.7 billion) in 2024 and are projected to hit 250 billion by 2025, while coffee reached 313.3 billion yuan last year, growing more than 23% annually.
Chongqing, a mountainous metropolis in southwest China, is riding the wave. The city hosts nearly 7,000 milk tea outlets and more than 3,200 coffee shops, ranking among the top cities nationwide.
Local demand is strong: residents consume an average of 17 cups of coffee per year, slightly above the national level, while in the downtown district of Yuzhong, that number jumps to 28. Despite producing neither coffee beans nor tea leaves, Chongqing has built one of China's most dynamic consumer markets.
Yet this consumption power highlights a paradox. While demand is high, few local brands have broken through nationally. In Chongqing's busiest shopping streets, chains like Mixue and Chagee dominate storefronts, while homegrown brands are less visible. Even at this year's Chongqing International Coffee Festival, only around ten local companies took part, a fraction of the total exhibitors.
Industry insiders say quality is not the issue. Boutiques such as Douji Tangyuan Milk Tea once developed loyal followings, and small specialty coffee houses enjoy strong reputations. The challenge lies in scaling up — without significant investment, brand-building, and expansion strategies, most struggle to grow beyond niche recognition.
The brand of Chagee from Changsha provides a telling comparison, which has become a cultural icon thanks in part to government support, including favorable site selection, financing, and rent policies. Many in Chongqing argue that similar public backing could help local businesses step onto the national stage.
Some districts are already acting. Yuzhong District, home to the city's densest cluster of cafes and tea shops, has singled out promising startups for support.
One Bey Coffee, for instance, was featured during Chongqing Week in Singapore earlier this year, where its drinks sold out in less than half an hour and earned praise from local consumers. Authorities have since pledged to help the brand with better locations, rental incentives, and promotional exposure.
Entrepreneurs are also innovating to set themselves apart. One Bey has rolled out peppercorn lattes and camellia-flavored Americanos, infusing local flavors into international beverages. This strategy not only gives the brand a distinctive identity but also promotes regional agricultural products.
Analysts believe such localization, combined with cultural storytelling and product innovation, could be key to propelling Chongqing's brands beyond the city's borders.
However, analysts also warn that expansion alone will not guarantee success. Several local beverage brands in the past lost their identity after being acquired or relocating their headquarters, diluting their connection to Chongqing.
To avoid repeating that pattern, the city's emerging players will need to anchor their growth firmly in local roots. Only by preserving a clear identity of Chongqing can the city evolve from a strong consumer market into a true brand hub.
Even so, momentum is building. Authorities are rolling out targeted support, entrepreneurs are innovating, and consumers are responding. If policy backing, market demand, and business drive come together, Chongqing's homegrown names could soon stand out and carry the city's distinct flavor onto the global stage.