Mid-year Report on the Tea Beverage Industry: 40% of Brands Are Contracting, While Yidiandian Sees a "Strong Rebound"
More than half of 2026 has passed, and the tea drink industry is undergoing a drastic differentiation. Some are sprinting forward, while others are hitting the brakes.
Mixue Ice City added a net of 6,148 stores in the past year; 1 DIAN DIAN rebounded strongly from the "midlife crisis" with a net increase of 1,688 stores; new players such as Molly Tea and Tea Waterfall are expanding their territory; on the other hand, some brands have experienced varying degrees of decline.
We sorted out the changes in store scale of more than 30 tea drink brands in the past year, trying to answer: What kind of brands are growing against the trend?
Big Picture: The Tea Drink Industry Has Formed "Three Tiers", and the Threshold of the "10,000-Store Club" Is Getting Higher and Higher
This year, the gap between leading brands and small and medium-sized brands has further widened, and the threshold for entering the "10,000-Store Club" is also getting higher and higher. (Data source below: Zhaimen Food Eye)
First Tier (over 40,000 stores): Mixue Ice City takes the lead with a clear gap.
Up to now, Mixue Ice City has more than 46,000 domestic stores, with a net increase of 6,148 in the past year, covering 367 cities. It is also the only brand that has exceeded 40,000 stores in the Chinese market.
Second Tier (10,000-store level): Both Guming and Aunt Shanghai have crossed the 10,000-store mark.
Guming added a net of 2,656 stores in the past year, with a growth rate of 18.74%, totaling 14,174 stores; Aunt Shanghai added a net of 2,311 stores in the past year, with a growth rate of 20.57%, totaling 11,236 stores. The two brands have maintained a relatively steady growth rate and are penetrating into broader markets.
Third Tier (5,000 to 10,000 stores): Chabaidao, Bawangchaji, Yihetang, Tianlala, 1 DIAN DIAN and Shuyi Shaoxiancao are in the fiercest competition.
The differentiation of rise and fall in this tier is obvious. It is worth noting that 1 DIAN DIAN rebounded strongly, adding 1,688 new stores in the past year with a growth rate exceeding 33%.
In addition, Bawangchaji added more than 300 new stores in one year, with a growth rate of 4.39%, and Chabaidao's growth rate was 5.34%.
The following data is from Zhaimen Food Eye (domestic data), as of July 2026, which may be different from the brand's own statistical caliber ——
Original data from Zhaimen Food Eye
Who Is Growing Against the Trend? — In-depth Interpretation of the Net New Store List in the Past Year
The fastest-growing brand is not necessarily the largest in scale, and the TOP 10 growth rates show a dual main line of "veteran recovery + new player outbreak".
Mixue Ice City: "Slow Down for Quality Improvement" of the 10,000-store Giant
Beneath the glory of the "milk tea overlord", Mixue's development in the past year has shown a restrained attitude. Zhang Yuan, the new CEO of the group, clearly stated at the performance briefing: "In 2026, the company will focus on improving the operating quality of stores and prudently expand the scale of stores."
Mixue's strategic adjustment sends a clear signal: When the scale is large enough, "quality" is more important than "quantity".
In terms of overseas markets, Mixue is also taking the initiative to adjust and reform. From "global store expansion" to "deep cultivation of the market", Mixue is undergoing a transformation from scale-driven to efficiency-driven.
1 DIAN DIAN: From "Midlife Crisis" to Strong Rebound
It added a net of 1,688 stores in the past year, with a growth rate of 33.61%, and the total number of stores exceeded 5,000. Around 2023, 1 DIAN DIAN ushered in its own "midlife crisis", with declining brand power and the number of stores once shrinking to around 3,000.
But over the past year or so, it seems to be making a comeback relying on the word-of-mouth of "1 DIAN DIAN lasts forever". Consumers spontaneously launched a nostalgic rescue campaign. Classic products such as Four Seasons Green Milk Tea and Black Tea Macchiato, together with highly customizable small ingredient formulas, have consistently ranked top in popularity on social platforms.
Driven by consumer enthusiasm, 1 DIAN DIAN opened nearly 1,000 new stores in the first 6 months of 2026. Its rebound also proves that The value return of classic brands is more powerful than imagined.
Molly Tea: The Fastest-growing "First-tier Player"
It added a net of 956 stores in the past year, with a growth rate of 37.46%, totaling 2,552 stores. From 0 to more than 2,500 stores, Molly Tea only took 5 years. Moreover, Molly Tea follows the "business district density" route — more than 70% of its stores are located in shopping malls, and stores in first-tier and new first-tier cities account for 43%.
In 2024, Molly Tea obtained nearly 100 million yuan of financing led by Alibaba Local Services. The new franchise policy in 2026 clearly encourages franchisees to operate multiple stores. The overseas layout is also accelerating — it has expanded to seven countries including the United States, Canada, and Australia, with nearly 60 overseas stores.
Tea Waterfall: The "Sinking Pioneer" of Aunt Shanghai
It added a net of 844 stores in the past year, with a growth rate of 65.68%, totaling 1,285 stores.
Tea Waterfall is an independent sub-brand under Aunt Shanghai, positioned as "affordable Chinese-style light milk tea". More than 60% of the new stores are invested in the sinking market, forming a dual complementarity of region and price with the main brand.
So far, Aunt Shanghai has also formed the synergistic value of the multi-brand matrix of "main brand + sub-brand".
Grandpa Doesn't Make Tea: A Nationalization Sample of Regional Brands
It added a net of 678 stores in the past year, with a growth rate of 24.47%, totaling 2,771 stores covering 31 provincial-level administrative regions. The brand recently announced that its sales volume from January to June increased by about 70% year-on-year, and the GMV of some newly opened stores exceeded 1 million yuan in the first month, and the monthly revenue of high-quality stores can reach more than 200,000 yuan.
Its growth momentum mainly comes from: the continuous hot sales of signature products such as Lychee Brew, Orchid Lime, and Empty Garden Gardenia, the high online growth brought by accurate digital member operation, and the investment in the supply chain.
Who Is "Achieving Big Results With Small Resources"? — High-growth Small and Medium Brands Worth Paying Attention To
Brands with small scale but amazing growth rate may represent the direction of the segmented track.
Nuan Yan · Hot Drinks for Period Care: Accurately cuts into the segmented female scenario. In the past year, the number of stores increased by 615 net, with a growth rate of 40.86%. At present, it has 1,505 stores covering 255 cities. The stores are mainly distributed in residential communities and streets, with main products such as Red Bean Peach Gum Warming Palace Drink and Rock Sugar Loquat Stewed Sydney.
Li Ruotao Handmade Yogurt Shop: A dark horse in the yogurt track, focusing on the mode of "freshly steamed white glutinous rice + yogurt". In the past year, the number of stores increased by 319 net, with a growth rate of 88.86%. Founded in 2024, it has opened about 360 stores in less than two years, covering 60 cities. Although it has not yet entered first-tier cities, stores in new first-tier cities account for 63.78%.
Tai Ben Niu Handmade Tea Shop: It added a net of 246 stores in the past year, with a growth rate of 83.67%, and currently has about 300 stores, mainly distributed in Shandong, Jiangsu, Shanghai and other regions. The top-selling product is Snow Mountain Vanilla Seed Latte, and popular products include Tea Brick Lemon Milk Shake.
Original data from Zhaimen Food Eye
Lianhong Qintiantian: A regional deep-cultivation brand, focusing on "northern mountain fruit tea" (characteristic mountain fruits from Qinhuangdao). It added a net of 177 stores in the past year, with a growth rate of 79.02%, and currently has more than 220 stores, mainly distributed in the Beijing-Tianjin-Hebei region. The signature best-selling product is Acre of Hawthorn Field, and popular products include Qinglong Little Chestnut Tea and Shili Wild Apricot.
Tamkoko Thai Tea Garden: A dedicated Thai tea shop, founded in 2025, has opened more than 330 stores in more than a year, with a growth rate of 99.70%, covering 109 cities, and shopping mall stores account for more than 60%. The ace product is Signature Salted Cheese Thai Milk Tea, and the classic product is Selected Thai Milk Tea.
These brands prove a truth: In a market full of giants, there are still opportunities for dark horses to emerge in the segmented track. When the overall market growth slows down, accurately cutting into segmented demands can achieve extraordinary growth instead.
Trend Summary — What Did the Brands Growing Against the Trend Do Right?
1. The sinking market is still the main battlefield, but the playing method has changed
Cities of third tier and below have become the main force of net growth, but the era of "simply opening stores" is over. More than 60% of Tea Waterfall's stores are invested in the sinking market, and Guming's new stores are still mainly in third and fourth tier cities. Under the "high-quality store opening" strategy of leading brands, the competition logic of the sinking market has also moved towards "fine cultivation".
2. "Classics" are reviving, and brand value is always worth investing in
The rebound of 1 DIAN DIAN proves the value return of classic brands, which is backed by consumers' emotional recognition of classic products. At the same time, old Taiwanese brands such as the overseas version of 50 Lan and Cu Nei Xiao Juan Cun have attracted attention, which also shows that classics keeping pace with the times can become assets that go through cycles.
3. There are still opportunities in segmented tracks, and consumption scenarios are further split
Segmented categories such as yogurt (Moi Yogurt, Li Ruotao), handmade innovation (Tai Ben Niu), and female scenarios (Nuan Yan) are worth paying attention to. Their common feature is "splitting consumption scenarios", and "splitting out" more targeted scenario demands from the broad user portrait.
4. Leading brands have adopted different playing methods
Mixue Ice City takes the initiative to "slow down and improve quality", Heytea strategically shrinks and refocuses on products, Bawangchaji gives