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flag China's coffee and tea market sees big brands thrive on delivery subsidies, while small shops struggle with rising costs and intense competition.

flag In 2025, China's coffee and tea market shows growing disparity between major brands like Luckin and Mixue, which thrive on delivery platform subsidies, and smaller shops struggling with rising costs and algorithm-driven competition. flag While consumers enjoy lower prices, more options, and increased spending due to promotions, small businesses face declining margins and weakened differentiation. flag Experts warn prolonged price wars risk quality erosion and market imbalance, urging smaller players to focus on niche offerings and alternative strategies to survive.

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