TCM-flavoured coffee gaining popularity among young in China

BEIJING – Mr Lu Jiming, a coffee shop owner in Nanning, capital of Guangxi Zhuang Autonomous Region, is quietly brewing a business combining traditional Chinese medicine (TCM) and coffee, driven by the younger generation’s new consumption frenzy that is heavily tilted towards healthy lifestyles.

Inside an old alley in Gucheng Road, Mr Lu’s coffee shop, which resembles a TCM pharmacy, is open only till 6pm each day. Named Herbal Coffee, the shop is a magnet for young consumers streaming in on a hot summer’s day to have a swig of its famous TCM-flavoured brew.

“I have been planning on coming to the coffee shop for a long time. My friend and I drove 40 minutes, and stood in line for 20 minutes more, to get a rhodiola latte and a mogroside Americano. The coffee with a special fragrance and fine mellow aftertaste and the novel experience of sitting inside a ‘TCM pharmacy’ drinking it were well worth the wait,” said a young woman, who gave her name only as Ms Zhang.

Soon, she was sipping the drink, taking selfies with friends and waiting to post her unique experience on social media.

Ms Zhang is among a rising number of millennials who are paying greater attention to maintaining good health. As many like her are loyal coffee fans, the combination of TCM and coffee is gaining in popularity.

“In the post-pandemic era, healthcare awareness of consumers has been rising. They are looking for beverages that both taste good and are also beneficial to the body,” said store manager Chen Di’ao of Banzhanzhuyu, a teahouse in Nanning.

“Therefore, we introduced health-preserving tea. The top two sellers are a digestion-boosting hawthorn drink and body-warming Chinese angelica tea.”

China Real Estate Data Academy president Chen Sheng said that a consumption upgrade has meant that consumer demand for beverages is turning “more diversified and personalised, incurring the fashion of health-preserving beverages”.

Columnist Zhang Shule at people.cn said: “In addition, the unique consumption experience attracts consumers, especially the young, to pay a visit to a coffee shop, buy a cup of coffee, and take photos to share with friends on social media, satisfying their social needs.”

Mr Lu, the owner, barista and the sole server of Herbal Coffee, said the shop once sold more than 100 cups of coffee in a single day, a record. He said consumers have often complained on social media that the shop lacks adequate staff to cater to its steady stream of visitors.

A recent survey jointly conducted by China Media Group, the National Bureau of Statistics and China Post showed that consumption of health-preserving products ranked third in young people’s expenditures, next only to spending on tourism and digital products.

Sensing the business opportunity, pharmaceutical companies are also climbing on the bandwagon.

Pharmacy giant Beijing TRT Group has launched a sub-brand Zhimajiankang and opened several outlets in Beijing, offering health-preserving drinks and healthy snacks. The prices of the beverages range from 32 yuan to 88 yuan (S$6 to S$17).

“Some customers are not used to the taste of drinks mixed with TCM. We are actively exploring more widely acceptable flavours to satisfy their demand,” said the head of a Zhimajiankang outlet in Beijing.

In August, Tong Ren Tang Technologies, a subsidiary under TRT Group, joined efforts with Xiami Music and launched a music festival themed by Shengmaiyin, a TCM drink, aiming at catching the attention of young consumers.

Herbal Coffee’s Mr Lu said his store, which opened officially in February, received two offers for business cooperation rather quickly.

“The current coffee track in China is fully competitive. Without careful and differentiated business strategies, a coffee shop will be driven out of the market sooner or later,” he said, when asked how the health-focused coffee sector can be turned into a viable, long-term business. “The product itself matters, but user experience is even more important.”

To offer a better environment for consumers, Mr Lu is planning to open another branch soon. He has also recruited workers to help, and is considering building Herbal Coffee into a social community and introducing new business lines.

Consumption of health-preserving products is expected to be a future trend that “will not only penetrate into beverages but also a lot of other sectors such as catering and fitness”, said business strategy expert Lu Buyun, the founder of a female consumption brand.

“Brands should make a careful business plan and stay tuned to consumer needs to adjust their products and services on time and realise sustainable development.” CHINA DAILY/ASIA NEWS NETWORK