The plant-based drink China has always known: domestic almond and walnut milks confront a new reality

Old brands, new pressure

China’s plant-based milk aisle has a deep domestic history that predates the oat‑milk craze. Oatly’s brief star turn may have grabbed headlines, but it has been reported that Oatly’s Greater China revenue of about $130 million in 2025 grew mainly through channel expansion and localized SKUs, while finished‑product sales actually ticked down. So is imported “oat hype” really the threat? Not exactly. The bigger story is that long‑standing domestic brands built on regional tastes and festive gifting are now facing weakening demand and tougher consumer scrutiny.

Regional favorites with decades of roots

Some of these brands are household names. Chengde Lulu (承德露露) traces its lineage to a 1950s canning factory and launched China’s first commercial almond drink in the 1970s; its almond‑based products still account for roughly 90% of the company’s revenue. Yangyuan Beverage (养元饮品), producer of Six Walnuts (六个核桃), rose to national fame after massive ad buys and the enduring slogan “经常用脑，多喝六个核桃.” It has been reported that Yangyuan’s total revenue slid from ¥9.117 billion in 2015 to ¥6.058 billion in 2024, with net profit almost halved. Vitasoy (维他奶) and other legacy players show similar mid‑single‑digit to double‑digit softening in recent quarters.

Packaging, culture and the limits of “healthy” messaging

These drinks have been sustained by gifting culture and regional loyalties — a “north drinks Lulu, south prefers coconut” pattern — and by ornate tin cans that sell face as much as fluid. Yet the façade is fraying. Researchers and consumers note smaller pack fills and sugar often listed high on ingredient panels despite “low‑sugar” claims. Six Walnuts has faced complaints alleging misleading ingredient and efficacy claims; the company says “Six Walnuts” is merely a trademark, not a literal ingredient guarantee. Reportedly, industry data show plant‑protein beverages are among the fastest slowing categories in dollar‑share growth, second only to dairy‑containing drinks.

A marketing and product crossroads

Domestic makers have begun to respond — sugar‑free launches, “half‑sugar” ranges and herbal variants — but they remain heavily dependent on legacy SKUs (Six Walnuts accounts for nearly 89% of Yangyuan’s revenue). Western narratives about sustainability and novelty didn’t fully translate to broader Chinese consumer priorities, and premium pricing has hurt some entrants. The question now: can these century‑old brands modernize their science, reformulate credibly and move beyond seasonal gift boxes — or will newer health narratives and changing tastes continue to erode their share?