866-997-4948(US-Canada Toll Free)

On-trade Soft Drinks - China - May 2016

Published By :

Mintel

Published Date : May 2016

Category :

Soft Drinks

No. of Pages : N/A

Beverages usually are not the centre of a meal, but pairing the beverages with food can effectively increase consumers’ likeliness of ordering a drink. Aside from herbal tea brands which have successfully paired themselves with hot pot cuisine, there is still great potential for other non-alcoholic drinks to pair with the vast choice of Chinese local cuisines

Table of Content

Overview

What you need to know
Covered in this Report
Excluded

Executive Summary

The market
Growth rate has slowed since 2014 and may remain stable
Figure 1: Volume sales forecast of on-trade soft drinks in China, 2010-20
RTD tea and bottled water are the dominant categories
Figure 2: Segment share of on-trade soft drinks in China, by volume, 2010-20
Companies and brands
Premium bottled water bubbles up in high-end restaurants
Use slogans and limited festive edition to increase brand awareness
Customise my drink – Coca-Cola Freestyle
Figure 3: Coke Freestyle, USA 2016
The consumer
Milk is rarely consumed but sees opportunities
Fast food restaurants enjoy the highest soft-drink consumption
Figure 4: Usage frequency in different on-trade channels, January 2016
Hot pot restaurants the channel to watch
Figure 5: Order frequency of different soft drinks in hot pot and fast food restaurants, January 2016
Light and thirst-quenching drinks are more ideal
Figure 6: Purpose of ordering soft drinks in on-trade channels, January 2016
Rely on brand
Figure 7: Purchase factor of on-trade soft drinks, January 2016
Summer is the peak season
Figure 8: General attitudes towards on-trade soft drinks, January 2016
Figure 9: General attitudes towards on-trade soft drinks, January 2016
Consumers in the north drink more than those in the south
Figure 10: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and region, January 2016
Mintropolitans are sophisticated in food pairing and nutrient balancing
Figure 11: Highlighted purpose of ordering on-trade soft drinks, by consumer classification, January 2016
What we think

Issues and Insights

Educate consumers on the concept of food pairing
The facts
The implications
Link with emotions
The facts
The implications
Tapping into flavoured water and fermented drinks
The facts
The implications
Figure 12: Percentage of flavoured water among total new-launched bottled water products in China, by year, 2012-15
Figure 13: Product example of flavoured water targeting female consumers, Japan and France 2014-15
Figure 14: Product example of fermented soft drinks. China, New Zealand, and Italy 2014-16

The Market – What You Need to Know

Growth rate slowed down since 2014 and may remain stable
Packaged products losing out to freshly-made drinks
RTD tea and bottled water are the dominant categories

Market Size and Forecast

Growth rate slowed down since 2014…
Figure 15: volume sale and annual growth rate of on-trade soft drinks in China, 2010-20
…and may remain stable in the next 3-5 years
Figure 16: Volume sale forecast of on-trade soft drinks in China, 2010-20

Market Drivers

Consumers’ frequent restaurant visiting and soft drink consumption
Consumers are spending less on alcoholic drinks
Figure 17: Chinese consumers’ changes in the amount spent in alcoholic and non-alcoholic drinks, Jan 2016

Market Barriers

Packaged losing out to freshly made
Lack of breakthrough innovation after herbal tea

Market Segmentation

RTD tea and bottled water are the dominant categories
Figure 18: Segment share of on-trade soft drinks in China, by volume, 2010-20
Herbal tea drives the RTD tea segment growth
Figure 19: Sales of on-trade RTD tea, by volume 2010-15
Bottled water surpassing RTD tea segment
Figure 20: Sales of on-trade bottled water, by volume, 2010-15
Packed juice market threatened by freshly-made juice
Figure 21: Sales of on-trade packaged juice, by volume, 2010-15
Figure 22: Product example of dessert-like packaged juice, China 2012
CSD market more stable in on-trade than in retail
Figure 23: Sales of on-trade CSDs, by volume, 2010-15
PPD and fermented drinks are potential stars
Figure 24: Sales of on-trade PPD, by volume, 2010-15
Figure 25: Product example of lactobacillus drink with reduced sugar level, China 2016

Key Players – What You Need to Know

Premium bottled water bubbles up in high-end restaurants
Customise my drink
Premium juice

Competitive Strategies

Premium bottled water bubbles up in high-end restaurants
Figure 26: Voss premium bottled water, Norway 2010
Brief and catching slogans
Figure 27: Example product with restaurant-targeting slogan, China 2014-16
Limited festive editions
Figure 28: Product example of festive limited editions. China and Singapore 2016

Who’s Innovating?

Customise my drink
Figure 29: Coke Freestyle, USA 2016
Resealable can
Figure 30: Product example of resealable can. UK 2015.
‘Mocktail’
Figure 31: Product example of ‘mocktail’, USA and Italy 2016
Premium juice
Figure 32: Example of coconut water for kids
Figure 33: Product example of packaged juice blended with super fruits or exotic fruits, Brazil and UK 2013 and 2016

The Consumer – What You Need to Know

Rely on brand
Fast food restaurants enjoy the highest soft-drink consumption
Higher threshold price
Regional dining habits affect consumers’ drinking purposes

The Consumer - Comparison of Retail and On-trade Channels

CSD is well-liked in on-trade channels
Figure 34: Soft drink consumption from retail channels, by category, January 2016
Figure 35: Top three most commonly ordered soft drinks, by channel, January 2016
Milk is rarely consumed but has opportunity

The Consumer - Usage Frequency

Fast food restaurants enjoy the highest soft-drink consumption
Figure 36: Usage frequency in different on-trade channels, January 2016
Female consumers order more often than the males
Figure 37: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and gender, January 2016
Consumers aged 40 and above order less than the young
Figure 38: Percentage of consumers who have not ordered any on-trade drinks, by channel and age group, January 2016

The Consumer - Usage by location

Diverse beverage preference in hot pot restaurants
Figure 39: Order frequency of different soft drinks in hot pot and fast food restaurants, January 2016
CSDs are rarely ordered in full-service restaurants
Figure 40: Order frequency of CSDs, by channel, January 2016
Figure 41: Product example of premium CSD
Packaged and freshly made juice each own their stage
Figure 42: Order frequency of packaged juice and freshly made juice/smoothie, by channel, January 2016
Speciality drinks and hot beverages are popular in full-service restaurants
Figure 43: Usage of freshly made juice/smoothie, special blend from the store, and hot beverages by channel, January 2016

The Consumer - Usage Purpose

Light and thirst-quenching drinks are more ideal
Figure 44: Purpose of ordering soft drinks in on-trade channels
Young consumers drink for physiological purposes; old consumers value the health benefits
Figure 45: Purposes of ordering on-trade soft drinks, by age group, January 2016
Need further education on health benefits
Figure 46: Purpose of ordering on-trade soft drinks, by education level and income, January 2016

The Consumer – Purchase Factors

Rely on brand
Figure 47: Purchase factors for on-trade soft drinks, January 2016
Building new habits
Men are loyal to brand; women are adventurous tasters
Figure 48: Purchase factor by gender, January 2016

The Consumer - General Attitudes towards On-trade Soft Drinks

Summer is the peak season
Figure 49: General attitudes towards on-trade soft drinks, January 2016
No strong preference between restaurant-made and packaged drinks
Higher threshold price
Figure 50: General attitudes towards on-trade soft drinks
Consumers in their 30s are more interested in children’s drinks
Figure 51: Percentage of consumers who would like to see more children’s drinks in on-trade channels, by age group, January 2016

The Consumer – Region and City Tier Comparison

Consumers in the north drink more than the south
Figure 52: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and region, January 2016
Regional dining habits affect consumers’ drinking purposes
Figure 53: Purpose of ordering on-trade soft drinks, by region, January 2016
Packaged juice and PPD more popular in tier two and three cities
Figure 54: Usage of packaged juice and PPD in different surveyed channels, by city tier, January 2016

The Consumer - Meet the Mintropolitans

More likely to order soft drinks
Figure 55: Percentage of consumers who always order on-trade soft drinks in selected channels, by consumer classification, January 2016
Sophisticated in food pairing
Figure 56: Highlighted purpose of ordering on-trade soft drinks, by consumer classification, January 2016
Aware of products’ nutritional value
Figure 57: Highlighted purchase factor of on-trade soft drinks, by consumer classification, January 2016

Appendix – Market Segmentation

Figure 58: Volume sales of on-trade RTD tea in China, 2010-20
Figure 59: Volume sales of on-trade packaged juice in China, 2010-20
Figure 60: Volume sales of on-trade CSDs in China, 2010-20
Figure 61: Volume sales on-trade bottled water in China, 2010-20
Figure 62: Volume sales of on-trade the others* drinks in China, 2010-20
Figure 63: Volume forecast of on-trade soft drinks in China, by segment, 2010-20

Appendix – Methodology and Abbreviations

Methodology
Fan chart forecast
Mintropolitans
Why Mintropolitans?
Who are they?
Figure 64: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 65: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Abbreviations

List of Table

NA

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title *
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *