Chinese thermos cup: a hot-selling myth from Yongkang, Zhejiang to the world

Chinese thermos cup: a hot-selling myth from Yongkang, Zhejiang to the world

The seemingly inconspicuous little Thermos cup is becoming a popular big business overseas.

According to the latest data from the General Administration of Customs, in the first quarter of 2024, China's total exports of Thermos Cups achieved a significant growth of 28.4% year-on-year. Among them, the North American market performed particularly well, with total exports increasing by as much as 39.2% year-on-year, showing that North America has a strong demand for thermos cups. There is a strong demand for high-quality thermos cups. iResearch data shows that 65% of the world’s stainless steel thermos cups are produced in China.

Why are Chinese thermos cups so popular all over the world? Let us start from the prosperity of China's thermos cup export market and explore the development process of China's thermos cup industry belt.

01 The export of thermos cups continues to accelerate

The popularity of Chinese thermos cups in overseas markets is no accident. According to data from Huaan Securities, the compound annual growth rate of China's thermos cup exports in the past five years has reached 22.1%, showing the excellent growth potential of this field. On cross-border e-commerce platforms such as Amazon, thermos cups have become a high-profile potential category.

Overseas, thermos cups are not only used for heat preservation, but also for "cold preservation" to maintain the cold taste of iced drinks. Moreover, benefiting from the increase in outdoor activities after the epidemic, the recovery of long-distance commuting, and the popularization of environmental protection concepts, the applicable scenarios for thermos cups in overseas markets have gradually increased. Insulation cups are used in daily offices, commuting to and from work, outdoor sports, school classes, etc. cup.

Different usage scenarios create demands for different product types: the diameter should be large so that it can meet the needs of European and American consumers who often put ice cubes; the capacity should be large so that it is not easy to leak, making it convenient for users to use when traveling and outdoors; and finally It’s good to be able to open the cup lid with one hand... In recent years, some thermos cup brands have actively catered to the needs of young consumers, transforming thermos cups from outdoor products into daily fashion items.

In 2023, a woman on TikTok recorded the scene of a vehicle fire, with thick smoke billowing and the car a mess. Only Stanley’s thermos cup was undamaged, and you could even hear the sound of ice cubes hitting the cup when you shook it. The popularity of this video has made Stanley extremely wealthy. In just 4 days, it has accumulated 80 million views. Foreigners rushed to Amazon and physical stores to buy Stanley's thermos cups, which indirectly proved that thermos cups are popular overseas. The market does have a lot to offer.

02 Can China’s thermos cup industry belt catch the “wealth and wealth”?Like many consumer industries, early domestic brands of thermos cups also began to emerge as foreign-owned foundries, and in just a few decades, they broke into the global market with extremely high cost-effectiveness advantages.

In this process, a number of thermos cup foundries have emerged in Yongkang and Wuyi in Zhejiang and Chao'an, Jieyang, Xinhui and other regions in Guangdong, and have formed industrial clusters over the years.

Especially Yongkang, Zhejiang, is known as the "Hardware Capital". Stainless steel is one of the most important upstream raw materials for thermos cups. Stable and large quantities of stainless steel raw materials can ensure the stable production of thermos cups. According to a report by China Quality News in 2020, the output value of Yongkang's cup and pot industry exceeded 40 billion yuan, accounting for 60% of the country's total, and its export volume accounted for more than 80% of the country's total. It is said that one out of every three thermos bottles in the world is produced in Yongkang.

In 2020, the "Yongkang Stainless Steel Products Industry Association" even directly changed its name to the "Yongkang Cup and Pot Industry Association", which is enough to show that the thermos cup industry has been able to stand alone in the local influence. Now, there are more than 300 thermos cup manufacturers here, more than 200 related supporting companies, nearly 100,000 employees, and their products are exported to 165 countries and regions around the world.

Supporting such a huge market, in addition to the internationally renowned brands at the top of the pyramid and the visible companies listed or to be listed, there are also thousands of small and medium-sized manufacturers scattered in every corner.

According to Qichacha data, as of June 2022, the registration places of enterprises related to my country's thermos cup industry are mainly concentrated in Zhejiang, with the number of registered enterprises reaching 3,389, far ahead of other regions; Guangdong ranks second, with 1,084 registered enterprises. ; Shandong ranks third with 641 registered companies; the number of registered companies in other regions is less than 500.

With the vigorous development of cross-border e-commerce platforms such as AliExpress, TEMU, TikTok, and SHEIN, Chinese thermos cup brands are moving to the center of the world stage at an unprecedented speed, directly reaching overseas consumers. These platforms not only provide brands with a broad market space, but also open up new development opportunities for many small and medium-sized thermos cup manufacturers. Especially in recent years, the fully managed model launched by platforms represented by Pinduoduo has provided small and medium-sized enterprises with a one-stop solution from production to sales, greatly lowering the threshold for going overseas and helping more thermos cup manufacturers to successfully go overseas.

From "Made in China" to "Chinese Brand", with the rise of brand awareness and changes in trade links, Chinese thermos cups are becoming the benchmark for national trends in going overseas as a brand rather than a product.