Core Insights - The report highlights a rational competition landscape in the sugar-free tea industry, with a focus on brand loyalty and market concentration among leading players [5][15][17] - The market share of sugar-free tea has steadily increased, reaching 35.12% by September 2025, up from 31.66% in January 2024, indicating a growing consumer preference for healthier options [11][19] - The average price of sugar-free tea is projected to rise from 5.1 yuan/pcs in 2023 to 5.6 yuan/pcs in 2025, driven by the increasing penetration of larger packaging products [10][12] Market Trends - The sugar-free tea market is transitioning from a growth phase to a phase of competition for existing market share, with a notable slowdown in sales growth during the peak season of 2025 [11][19] - The competitive landscape is shifting towards rationality, with market share increasingly concentrated among top brands, such as Nongfu Spring, which saw a market share increase of 10.94 percentage points to 79.36% by June 2025 [5][19] - The industry is witnessing a significant reduction in the number of new product launches, with a focus on quality and targeted market segments rather than quantity [17][19] Consumer Behavior - Consumer preferences are evolving from mere thirst-quenching to seeking emotional satisfaction and multi-scenario applicability, with 65% of consumers purchasing tea for mood enhancement [23][26] - The demographic of sugar-free tea consumers is predominantly under 30 years old, accounting for over 70% of the market, indicating a need for brands to expand their appeal to older age groups [27][30] Product and Packaging Innovations - The industry is moving towards larger packaging formats to cater to group consumption scenarios, with 1.5L bottles gaining popularity in family and office settings [23][30] - Brands are increasingly focusing on flavor optimization and cultural integration to attract diverse consumer groups, with localized products being tested in specific regions [34][39] Channel Strategy - The report emphasizes the importance of offline channels, which account for over 80% of sales, with grocery stores being the primary sales channel [33][38] - Brands are shifting from broad distribution strategies to more refined channel management, utilizing digital tools to enhance operational efficiency and consumer engagement [36][39] Investment Logic - The report suggests that as the competitive landscape clarifies, market concentration will continue to favor leading brands, which are expected to leverage their established product lines and market responsiveness to capture market share [42]