Mid-Autumn Festival is always a crucial marketing opportunity. How to better capitalize on the Mid-Autumn buzz and leverage it for Tea marketing is a topic that often sparks discussions and attention within the industry.
To inspire new ideas for Mid-Autumn marketing among tea companies, “Tea Talk” has launched a special series titled “Seizing the Momentum of Mid-Autumn – Boldly Moving Forward – 2024 Tea Industry Mid-Autumn Marketing Series.” This series will delve into trends for Mid-Autumn tea mooncakes and tea utensils, Mid-Autumn marketing strategies, and market trends.
On the eve of Mid-Autumn Festival, the tea mooncake market becomes the focus of the industry, with questions about whether price wars are intensifying, whether the transition towards health is solidifying, how far the boundaries of innovative flavors have been pushed, and when the trend of extravagant gift boxes will return to rationality. To address these pressing and profound questions, “Tea Talk” decided to visit the core production areas of tea mooncakes in Shenzhen, Xiamen, and other locations for an on-site exploration.
On the factory floor, tea mooncakes showcase their market appeal through distinct textures and creative packaging designs. However, the direction of the tea mooncake market is just one part of the broader Mid-Autumn market; looking at this alone does not determine the overall state of the tea industry's Mid-Autumn market this year. To gain deeper insights into the tea mooncake market, “Tea Talk” focuses on price competition, depth of flavor innovation, and changes in packaging styles – key dimensions of the market – aiming to clear the fog and reveal the true face of the tea mooncake market!
△ Diagram by “Tea Talk”
Economic Downturn Trends Are Obvious
Overview of the Tea Mooncake Market Layout
According to data released by the National Bureau of Statistics, in June of this year, the price of food consumed by urban residents decreased by 2.1% compared to the same period last year. This reflects the sluggish consumption trend against the backdrop of economic slowdown. In this context, the tea industry is quietly brewing new development trends.
“Tea Talk” previously learned from several tea brands that during the Dragon Boat Festival this year, the tea zongzi market faced an unprecedented cold spell, with the scale of customized production shrinking drastically, nearly halving. Some enterprises had to reduce operations or even withdraw from the tea zongzi market due to sudden changes in the market environment. This trend was further confirmed during our visits to tea mooncake factories.
△ “Tea Talk” Visits Tea Mooncake Factories (Photo by “Tea Talk”)
In the fierce competition for the Mid-Autumn market in the tea industry, forward-thinking layouts have become a critical step to capture market share. Last year, some tea companies broke the tradition of starting mooncake marketing one month before Mid-Autumn, instead beginning promotions two to three months before the festival. This year, this trend has intensified, with various brands accelerating their marketing efforts to seize opportunities early. According to tea mooncake factories, as early as April-May, many food companies were already launching new Mid-Autumn mooncakes.
In the current economic downturn, the phenomenon of downgraded consumption is gradually becoming apparent. The pricing trend of tea mooncakes has become one of the focal points of the market. Tea companies in the midst of the Mid-Autumn marketing battle often find themselves caught between the need for market share and profit. During our visits, multiple tea mooncake factories indicated that, based on historical sales data, affordable tea mooncakes, especially those priced between 98 and 250 yuan, are more popular with consumers. Therefore, many tea companies have begun optimizing their product structures, streamlining some items of the same specifications to make room for more new products that align with market trends and provide customized services.
Notably, given the deeply rooted tradition of giving mooncakes as gifts to family and friends, there is a clear demand for them. Despite changes in the market environment, the price levels of tea mooncakes this year remain stable, similar to previous years, ensuring the value and market positioning of this traditional holiday gift remains unaffected.
△ Tea Mooncake Production Line (Photo by “Tea Talk”)
This year, the fluctuation in tea mooncake prices has been small, but in general, the pricing range of tea mooncakes has undergone significant changes in recent years. “Tea Talk” discovered that since the implementation of regulatory measures for “astronomically-priced” mooncakes in 2022, the mooncake market has undergone a purification process, with gift boxes priced over 500 yuan largely exiting the Mid-Autumn market. Currently, the mainstream price range of tea mooncakes is firmly set between 100 and 300 yuan, with the highest prices mostly capped at 498 yuan. The dual effects of market regulation and consumer rationality are evident. This change is influenced by multiple factors affecting tea mooncake prices, including market conditions, production costs, fluctuations in raw materials, consumer preferences, Brand strategies, and cultural emotions. To accurately grasp market dynamics and predict industry trends, we need to take a comprehensive perspective and consider all these factors.
Innovative Flavors + Health benefits
Tea Mooncake Production Hits the “Accelerate” Button
As consumption patterns continue to upgrade, health and taste have become the core considerations for consumers when selecting food. To better meet market challenges, tea mooncake factories have fully embraced the concept of innovation throughout the entire supply chain to enhance product competitiveness.
“Tea Talk” found that food safety has become an unshakable cornerstone for tea mooncake factories. From the entry of raw materials to the release of finished products, every production step undergoes strict quality control. Some factories have introduced internal barcode traceability systems for food to achieve transparent management of the entire production chain of tea mooncakes. Others have invested in high-tech research and development centers, building a robust defense system covering four quality control systems to ensure consumers can eat with peace of mind.
Market data also confirms the rising trend of healthy mooncakes. According to a report by iiMedia Research titled “2024 China Mooncake Industry Consumer Trend Insight Research Report,” 86.8% of consumers are willing to buy low-Sugar, low-fat healthy mooncakes. As the “selective consumption” in the field of health shifts towards “essential consumption,” tea mooncakes are moving towards healthier directions. Some tea mooncake factories stated that this year, they placed greater emphasis on the quality of ingredients used in the production process. To improve the quality of mooncakes, the factories took a series of measures, such as using higher-quality raw materials, optimizing production processes, and enhancing employee training, to comprehensively improve the quality of the mooncakes.
△ Tea Mooncake Production Line (Photo by “Tea Talk”)
According to relevant responsible persons from some tea mooncake factories visited by “Tea Talk,” to actively respond to consumers' pursuit of healthy eating habits and effectively control intake, most tea mooncake factories have opted to reduce the weight of individual mooncakes in packages. Currently, tea mooncakes on the market are generally light, with each weighing mostly between 60 and 80 grams. Based on current trends, tea mooncakes are likely to become even more delicate and smaller in the future.
The production process of tea mooncakes differs significantly from that of ordinary mooncakes. Tea mooncake factories emphasize that to achieve a full fusion of tea aroma and mooncake texture, not only must high-quality ingredients be selected, but also careful matching and blending of ingredients are required. Additionally, to capture market share, tea mooncake factories follow the latest trends each year and innovate tea mooncake flavors.
“Tea Talk” learned that the path of innovation for tea mooncakes involves deep market insights. After