Starbucks Cuts Non-Coffee Drink Prices by 5 Yuan in China to Boost Tea Market Share

Starbucks, the global coffee giant, has announced a significant price reduction on its non-coffee beverages in China, marking a strategic move to capture a larger share of the tea beverage market. Effective from June 10, 2025, Starbucks will lower the prices of its popular non-coffee drinks, including Starbucks Refreshers, Iced Shaken Tea, and Tea Latte, by an average of 5 yuan per large cup. The lowest price for these beverages will be set at 23 yuan, making them more accessible to a broader range of consumers.

This price adjustment is part of Starbucks' broader strategy to expand its market presence beyond coffee, particularly in the afternoon and evening segments. By offering a more affordable range of non-coffee beverages, Starbucks aims to attract younger consumers who are increasingly turning to tea and other non-coffee drinks. This move is also in line with the company's goal of providing a full-day service experience, where customers can enjoy coffee in the morning and non-coffee beverages in the afternoon.

The decision to reduce prices on non-coffee beverages comes at a time when the tea beverage market in China is experiencing rapid growth. While the coffee market is also expanding, the tea market remains significantly larger. By entering the tea beverage market with competitive pricing, Starbucks hopes to tap into this growing segment and diversify its revenue streams.

In addition to the price reduction, Starbucks is also introducing new products and promotions to enhance its non-coffee beverage offerings. On June 17, the company will launch a new Iced Shaken Tea series in collaboration with Disney's "Zootopia" (Madagascar). This series will feature three themed beverages inspired by the film's characters: the "Orange Chaos Iced Shaken Tea," the "Star Fruit Pear Iced Shaken Tea," and the "Midnight Blueberry Burst Iced Shaken Tea." These beverages will be part of a comprehensive product line that includes drinks, snacks, merchandise, and gift sets, further enriching the customer experience.

Starbucks' strategy to focus on non-coffee beverages is not just about capturing market share; it is also about creating a more diverse and appealing product portfolio. The company's "True Tea, True Milk" philosophy ensures that its tea-based beverages are made with high-quality ingredients, setting them apart from competitors that may rely on artificial flavors and additives. This commitment to quality is a key differentiator for Starbucks in the competitive tea beverage market.

The price reduction and new product launches are part of a broader effort by Starbucks to enhance its customer experience and drive growth. By offering a wider range of beverages at more affordable prices, the company aims to attract new customers and retain existing ones. This strategy is particularly important in a market where competition is fierce, and consumer preferences are constantly evolving.

Starbucks' move to reduce prices on non-coffee beverages is a strategic response to the changing market dynamics in China. By focusing on the afternoon and evening segments, the company aims to provide a full-day service experience that caters to the diverse needs of its customers. This approach not only helps Starbucks to capture a larger share of the tea beverage market but also strengthens its position as a leading player in the beverage industry.