Nongfu Spring, the dominant force in China’s beverage market, has reported a landmark financial recovery for 2025, signaling that the company has largely insulated its bottom line from a period of intense social media hostility. The firm’s annual revenue surged past the 50-billion-yuan threshold for the first time, reaching 52.55 billion yuan, a 22.5% increase that marks a dramatic turnaround from the stagnant growth of the previous year. Net profits similarly outpaced expectations, growing by nearly 31% to 158.68 billion yuan.
This resurgence is particularly noteworthy given the reputational crisis that engulfed the company in early 2024. Following the death of Wahaha founder Zong Qinghou, Nongfu’s chairman Zhong Shanshan became the target of a nationalistic online boycott, with critics scrutinizing his past business dealings and the company’s packaging aesthetics. While the bottled water segment saw a 21.3% revenue drop during the height of the controversy, the latest figures suggest that the brand's operational foundations remained resilient against the digital firestorm.
A strategic shift in product mix has been central to this recovery. For the first time, Nongfu’s tea beverage division has overtaken its flagship bottled water business as the primary revenue driver, contributing over 41% of total turnover. This diversification into high-growth categories like Oriental Leaf tea has provided a crucial buffer, allowing the company to maintain overall momentum even when its core water products faced localized consumer resistance in major urban centers.
Despite the financial triumph, internal research suggests that the brand's 'controversial' label persists among younger demographics. While the majority of consumers still reach for Nongfu products due to their ubiquitous distribution and perceived quality, over 31% of the 18-25 age group remains skeptical of the brand's reputation. This sentiment gap between purchasing behavior and brand affinity suggests that while Nongfu has won the battle for the wallet, the battle for the hearts of China's Gen Z is far from over.