According to the OECD-FAO Agricultural Outlook 2018-2027, rising demand for processed products, sugar-rich confectionery and soft drinks in Asia's urban centers will boost demand for sugar. The report is released by the Organisation for Economic Cooperation and Development and the UN Food and Agriculture Organization.

Loris Li, director with market intelligence company Mintel Group in Shanghai, said, "Chinese consumers with higher incomes have also increased their sugar intake."

Despite growing awareness that higher sugar consumption can be unhealthy, she said these consumers prefer food and drink products that are tasty. "They don't pay much attention to the nutritional information (on food labels), as they just want to enjoy and indulge," she said.

For example, Li cited the bubble tea craze, which often sees consumers line up for hours for the drink. She said a Mintel survey last year found that only 5 percent of respondents ages 18 to 49 did not buy any bubble tea during the survey period from June to August.

"The rise of tea shops in recent years has lured a large number of Chinese consumers to drink beverages such as milk tea, fruit tea and cheese tea. These drinks all have high quantities of sugar," she said.

Featuring fresh-cut fruit, a sweet cheese topping and freshly brewed tea, HEYTEA has become a popular brand with young consumers. Many line up for at least half an hour just to buy a cup of the beverage.

Since 2017, the 6-year-old brand has doubled the number of its shops, including tea vendors and teahouses, to 198. The best monthly sales for a single shop reached 4 million yuan ($578,000), according to Huo Wei, HEYTEA director of communications.

"Sweetness can bring happiness and pleasure to people, and diversified products can meet different consumers' requirements. That is why the brand has become so popular," she said.

Huo said HEYTEA keeps introducing new products to consumers, which can attract younger people who like to try new things.

"We will develop new products in line with the characteristics of a particular city and based on different seasons," she said. For example, in Beijing, HEYTEA has produced a special product for the city, which mixes the liquor baijiu and osmanthus tea.