Sparkling tea: fad, fashion or fixture?
As more local brands jump on the trend, Rebecca Lo does a deep dive into the advent of sparkling teas in Hong Kong and its embrace by younger markets.
The pandemic’s long tentacles continue to be felt globally, particularly in the habits of those who spent their formative years under lockdown.
The global market for functional beverages was valued at US$175 billion in 2022 and forecast to reach US339.6 billion by 2030, according to Forbes.
Consumption of non-alcoholic beverages in the US grew by 20% in 2023, and the category is projected to grow at a compound annual rate of 17% through to 2028. The trend is most notable among Gen Z, with 21.5% claiming abstinence and 39% drinking just occasionally.
The rise of young teetotallers leaves the market open for sparkling teas to muscle in on territory traditionally dominated by wine and beer. Tea consumption is associated with enhanced cardiovascular and metabolic health. In Hong Kong, tea has always been a beverage staple. No wonder increasingly more businesses are enticing Gen Z and Gen Alphas with effervescent tea alternatives.
“Grapes and tea leaves have similarities in terroir and production,” says Natalie Chiu, co-founder of Saicho and an OG in the sparkling tea industry. “The time for picking and harvesting impact flavours. Tea and wine have equal amounts of heritage and stories. We can utilise the same language for descriptions, such as discussing its bitterness and tannins.”
Originally from Hong Kong, Chiu established Saicho in 2019 with Charlie Winkworth-Smith. Its signature range of single-origin sparkling teas feature green, roasted and black choices, or jasmine, hojicha and Darjeeling respectively. It entered the market through sommeliers, shifting to online retail sales with the UK and Hong Kong as its key markets.
Recent collaborations include sustainable cocktails with Hong Kong wine bar Socio and as drinks partner with Heep Hong Society fundraising event The Great Chefs of Hong Kong on 12 May 2025. “We want to create inclusivity and meaningful experiences for non-drinkers in restaurants or at home with friends and family,” explains Chiu.
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Hong Kong mixologist Antonio Lai may be the man most associated with tea cocktails. Through his Tastings Group, he branched off with Alex Ko to develop Chako sparkling tea cocktails during the pandemic in 2022. “We observed a growing demand for casual, at-home drinking, and decided to create a mess-free, portable solution that delivers bar-quality cocktails,” Lai notes.
Chako contains 7% ABV spiked sparkling tea with flavours such as peach and ginger oolong plus mango and blood orange Tie Guan Yin. In addition to popular on- and offline retailers, it is available in select restaurants. “Many establishments face limitations in manpower and resources to craft their own cocktails, and that’s where Chako becomes the perfect solution,” Lai says. “We’re exploring opportunities to integrate it into more venues, leveraging its convenience and quality to enhance the drinking experience at festivals, concerts and other gatherings.”
Mezzanine Makers is another Hong Kong-based sparkling tea producer. Founded in 2022 by Adrian Ng and Edward Li, it offers carbonated beverages infused with locally sourced ingredients and made-in-Hong Kong appeal through nostalgic graphics. Along with retailers, it positions itself in like-minded Hong Kong establishments such as Golden Scene Cinema and sponsors mixers at events such as Ginsanity at PMQ in 2024.
Ng understands the appeal of abstaining: “I think it’s mostly about wellness and freedom — the core values that Gen Zs and Alphas embrace. Sparkling tea is a permanent fixture on shelves. Tea is natural with a lot of nutrients. And its rich history, variety, flavour and fermentation process give it a solid foundation to fit into every culture. Key words for what’s next are ‘function’, ‘antioxidants’, ‘natural caffeine’, ‘no sweeteners’ and ‘Chinese’. We will even begin exploring Chinese florals such as chrysanthemum and hibiscus as functional ingredients.”
Sparkling tea suits younger lifestyles as it aligns with the search for quality, tantalising mouthfeel and IG-friendly optics. “It fills a niche by offering a refreshing, health-conscious alternative for casual and sophisticated occasions,” says Lai. “Tea cocktails have already gained popularity in Asia. I’m eager to see how they will expand globally by incorporating local teas for something really special.”
“We are just scratching the surface,” says Chiu. “It is fascinating to see how quickly customers are integrating us and using our products creatively. Sparkling teas are here to stay.”
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