Yili Revolutionizes Chinese RTD Tea Market with Pioneering INIKIN Tea

The Ready-to-Drink (RTD) tea market in China is on an upward growth trajectory, with projections indicating a steady rise in consumption. According to Statista, the volume of the RTD tea market in China is expected to rise from 9.4 billion liters (L) in 2024 to 9.8 billion L in 2025, a 5.0% increase, with the average volume per capita at home reaching 6.53 L in 2024, a 5.3% year-on-year (YoY) increase. This growth highlights the increasing demand for convenient, ready-to-consume beverages that align with modern consumer lifestyles, particularly those marketed as healthier options.

Figure 1: RTD Tea Market Growth in China (by Volume)

In response to this growing market, several companies have introduced innovative products in 2024 aimed at capturing a share of this lucrative segment. Among them is Nestlé China, which launched an Oolong tea infused with mulberry extract, targeting health-conscious consumers. Another significant entrant into the RTD tea market is Yili, a dairy giant traditionally known for its dairy products. Yili has expanded its product offerings by introducing an entirely new concept of ‘instant brewed tea’ under its INIKIN brand.

Yili’s innovative approach centers around a novel twist-cap technology, revolutionizing RTD tea preparation. The concept involves freeze-drying tea at -40°C and embedding it into the bottle cap. When the cap is twisted, the tea is released into the water bottle, instantly mixing with the water. This method preserves the original taste of brewed tea since the tea has not undergone any oxidation. The result is a beverage that tastes as fresh as traditionally brewed tea but offers the convenience of an RTD product.

Yili’s technology allows the tea to mix evenly with mineral water at room temperature, which the company claims enhances the drink’s health benefits. The water used is described as volcanic, naturally alkaline, and slightly sweet, further promoting the health appeal of the product. Notably, the tea contains no sugar, calories, or additives, making it a clean-label product that fits well into the current trends of healthier drinking choices and the booming Chinese RTD tea market. The INIKIN tea range is available in two variants: jasmine green tea and oolong tea, catering to diverse consumer preferences.

Figure 2: Yili’s INIKIN Tea

Yili's strategic move into the tea category is driven by a desire to meet the increasing consumer demand for healthier products. The significant growth of the RTD market presents an opportunity for Yili and other beverage companies to diversify their product offerings, recognizing the evolving consumer expectations for health and wellness-enhancing products. Additionally, Yili's focus on innovation, particularly in flavors and ingredients, positions it well to capture consumer interest. The patented twist-cap technology, which is the first of its kind on the market, has already garnered considerable attention and interest from consumers, highlighting the potential success of this new product line.

In conclusion, the RTD tea market in China is thriving, with companies like Yili and Nestlé China leading the way with innovative, health-focused products. Yili's entry into the market with its instant brewed tea concept reflects a broader trend of leveraging technology to meet consumer demands for convenience, health benefits, and novel experiences in beverage consumption. As the market continues to grow, further innovation and diversification are expected to shape the future of the RTD tea segment in China.