China’s Health-Conscious Turn to Yoghurt Drinks

China’s urban centres, particularly higher-tier cities like Shanghai, are witnessing a dietary shift among the young and health-conscious. At a current market value of ¥210 billion ($30 billion) in 2023 and over 9% growth by 2028, the once coveted milk tea is gradually making room for yoghurt-based beverages. Brands such as ‘Blueglass’ (¥45 ($6.20) per cup) or ‘More Yogurt’ (¥28 ($3.85) per cup) have exploded in growth, and many traditionally tea-only shops are now offering yoghurt as another alternative. So, what is driving this rising appeal of yoghurt?

Blueglass (Source: RED)

More Yogurt (Source: RED) 

Yoghurt's Healthy Appeal:

Yoghurt, known for its probiotic benefits, is now viewed as a healthier and more nutritious alternative to milk tea. The rich variety of yoghurt-based beverages, often paired with fruits, nuts, and grains, provides a hearty, (often not so) low-calorie option for those seeking a nutritious yet indulgent treat. Amidst a growing fitness culture, yoghurt's low-fat, probiotic-rich, low-sugar narrative strikes a chord with many, especially women aiming for a healthier lifestyle​.

Small Molecule Polypeptide, Many Different Probiotics, No Hydrogenated Cream, No Plant Fat (Source: RED)

List of probiotics within a Blueglass yoghurt directly on cup (Source: RED)

Social Media's Role:

The aesthetic appeal of yoghurt beverages is not lost on social media. Platforms like Xiaohongshu (RED) are flooded with images of beautifully presented yoghurt drinks, shared by influencers and common folk alike. The visually pleasing packaging and the 'instagrammable' aspect of yoghurt beverages, alongside the creatively designed physical stores, are drawing consumers in, both online and offline​.

Baoju Yoghurt Drink (Source: RED)

Innovative Marketing:

Brands are capitalizing on this trend by marketing yoghurt as a natural, fresh, and burden-free choice. Some products even carry enticing names suggesting health benefits, like "Anti-Gravity Collagen Drink", hitting right at the heart of consumers' desire for health and beauty. Moreover, the explosive growth of certain yoghurt brands, with some reaching over 1,000 stores, reflects the market's positive response to these marketing strategies​.

Post talking about yogurt as ‘Afternoon Tea’ at the office (Source: RED)

Yoghurt at office (Source: RED)

Consumer Response:

The shift is evident - offices in Shanghai are ordering yoghurt for afternoon refreshments over milk tea. Even with a higher price point, the preference for yoghurt is clear. The trend isn't confined to the youth; older individuals are also seen queuing up at yoghurt stores, embracing the health benefits and diverse flavours yoghurt beverages offer​.

The yoghurt wave, driven by health consciousness and amplified by social media, is reshaping beverage preferences in Shanghai. As the health narrative continues to dominate consumer choices, the trend is a testament to the evolving dietary landscape in urban China. For brands, this shift highlights the importance of aligning with consumer health preferences and leveraging social media to stay relevant in a competitive market. The choice of yoghurt over milk tea scenario is more than just a fad; it's a reflection of a health-conscious, digitally connected consumer base steering the market dynamics.

For a deeper dive into this trend or the trend in health overall and how it could impact your brand strategy in China, contact China Skinny.