# Chagee

The Bitter Aftertaste: China’s Tea Drink Giants Face a Growth Reckoning

China's new-style tea industry is transitioning from a period of rapid store expansion to a grueling war of attrition as the market reaches saturation. While low-cost leaders like Mixue Bingcheng are pivoting to coffee, premium brands like Chagee and Nayuki are struggling with declining profits and the high costs of delivery-dependent business models.