Starbucks China cuts prices on non-coffee drinks amid competitive beverage market push
Starbucks China lowers prices on Frappuccinos and Iced Teas to attract a broader consumer base and boost store performance.
CHINA – Starbucks China has announced a price reduction across its non-coffee beverage range as part of its strategy to strengthen its foothold in the country’s competitive beverage market.
Beginning June 10, the price of dozens of beverages—including Frappuccinos, Iced Shaken Teas, and Tea Lattes—will decrease by an average of 5 yuan (US$0.79) for the Grande size. Select items will be available from 23 yuan (US$3.20).
The move supports Starbucks’ “all-day beverage” strategy, which aims to position coffee as a morning preference and non-coffee offerings as afternoon choices.
With over 7,700 stores in China, Starbucks is focusing on affordability, variety, and personalization to attract a wider demographic of consumers.
Industry analyst Zhu Danpeng noted that the price adjustments reflect a shift in Starbucks’ local approach. While price reductions for core coffee items remain unlikely due to the brand’s premium positioning, adjustments in non-coffee categories can help appeal to more cost-conscious consumers.
Zhu emphasized that the use of differentiated pricing is intended to broaden Starbucks’ customer base, drive higher in-store revenues, and retain market share in an evolving beverage landscape.
Starbucks is also investing in product development to support the initiative. On June 17, it will introduce three new co-branded Iced Shaken Teas in partnership with Disney’s animated film Zootopia.
Additional Tea Latte flavors and a wider rollout of themed merchandise and gift sets will follow, aiming to increase consumer engagement.
Frappuccinos remain a key summer offering and an entry point for new customers. Starbucks highlighted strong response to a recent collaboration with the Mayday band in May and reported consistent sales growth for Iced Shaken Tea over the past three years.
The company also launched sugar-free flavored coffee in April, targeting health-conscious consumers and expanding customization options.
During its Q2 earnings call on April 29, Starbucks Chairman and CEO Brian R. Niccol cited product and pricing innovations as contributing to “indicators of progress” in the Chinese market.
Chief Financial Officer Catherine R. Smith reported flat comparable store sales in China for the quarter, supported by positive transactions, stable margins, and improved customer and employee satisfaction.
The pricing strategy comes as domestic competitor Luckin Coffee moves into the tea sector with a kale fruit and vegetable tea line.
Despite rapid growth in coffee, tea continues to dominate, with iiMedia Research projecting China’s new-style tea market to exceed 400 billion yuan by 2028.
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