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Tea Drinks - China - April 2016

Published By :

Mintel

Published Date : Apr 2016

Category :

Beverages

No. of Pages : N/A

The ready-to-drink tea drinks market in China has developed slowly over recent years. Intense competition from other soft drink categories and the decline in demand for green and black/red tea drinks, and lack of product innovation have all led to the poor performance of the current market. Despite the pressure, future growth is projected due to the continuing progress of premiumisation and trading up, innovation in flavours and ingredients, and effective consumer segmentation and targeting.

Table of Content

Overview

What you need to know
Products/themes covered in this Report

Executive Summary

The Market
Figure 1: Retail market value of RTD tea drinks in China, 2010-20
Figure 2: Retail market volume of RTD tea drinks in China, 2010-20
Key Players
Figure 3: Market share, by value of leading players in the RTD tea drinks market in China, 2015
Figure 4: Market share, by volume of leading players in the RTD tea drinks market in China, 2015
The Consumer
Figure 5: General attitudes towards different types of RTD tea drinks, by gender, December 2015
Figure 6: Repertoire of RTD tea drinks purchasing channels, December 2015
Figure 7: RTD tea drinking occasions, by gender and monthly household income, December 2015
Figure 8: Preference on new products innovations, by city tier, December 2015
What we think

Issues and Insights

How to use multiple purchasing channels to target RTD tea buyers and drinkers?
The facts
The implications
How to utilise flavour variety and ingredient innovation to attract consumers?
The facts
The implications
How to target female high earners and stimulate trading up?
The facts
The implications

The Market – What You Need to Know

Overall upward trend in value projects slow but stable growth
Future market will see moderate recovery and growth
Competition from refreshing drinks
Ethical claims as a key market driver

Market Size and Forecast

Figure 9: Retail market value of RTD tea drinks in China, 2010-20
Figure 10: Retail market volume of RTD tea drinks in China, 2010-20
Figure 11: Value and volume retail sales for RTD tea drinks in China, 2010-20

Market Drivers

Threat from refreshing drinks
Ethical claims on packaging on the rise
Figure 12: The ethical claim trends of RTD tea drinks in China, 2011-16
Figure 13: Dailyherb Mei Gui Li Zhi Hong Cha (Rose and Litchi Black Tea) in China, June 2015; Dailyherb Luo Sheng Cao Mei Wo Long Cha (Roselle & Strawberry Oolong Tea), June 2015

Key Players – What You Need to Know

Leading players dominate the market
Three current innovation trends

Market Share

Tingyi (Cayman Islands) Holding Corporation
Uni-President China Holdings, Ltd.
JDB Group (Guangdong Jiaduobao Beverage & Food Co. Ltd.)
Hangzhou Wahaha Group
Figure 14: Market share of leading companies in the RTD tea drinks market in China, by value and volume, 2014 and 2015

Who’s Innovating?

Mix and match of flavours – fruits and tea
Figure 15: Ito En Tea’s Tea Apple Tea in Taiwan, March 2016; FamilyMart Collection Strawberry Flavoured Milk Tea in Taiwan, March 2016
Tea drinks with plant and protein
Figure 16: AGV Mai Zai Cha (Barley Tea) in China, September 2015; Master Kong He Tao Wei Jin Dian Nai Cha (Walnut Flavoured Classic Milk Tea) in China, December 2014
Tea drinks with food elements/texture
Figure 17: Bubble Republic Cha Prung Samred Pasom Nam Linchee Laea Jelly (Green Tea Beverage with Lychee Juice and Jelly) in Thailand, October 2015
Figure 18: Ministop Café Black Tapioca Mango Tea in Jelly in Japan, July 2015

The Consumer – What You Need to Know

Flavour variety is essential to develop for tea drinks
Online channel favoured by low-mid earners but is yet to reach full potential
Ingredient innovation as a key way to attract lower tier city residents
Meet the Mintropolitans

Attitudes towards Different Types of RTD Beverages

Tea drinks have unique competitive advantages
Tea drinks need flavour variety expansion
Figure 19: Correspondence map, December 2015
Figure 20: Attitudes towards different types of RTD beverages, December 2015

Attitudes towards Different Types of RTD Tea Drinks

Milk tea perceived as most romantic while green and jasmine tea most refreshing
Gender as a key differentiator for marketing distinctive tea types
Figure 21: General attitudes towards different types of RTD tea drinks, December 2015
Figure 22: General attitudes towards different types of RTD tea drinks, by gender, December 2015

Purchasing Channels

Majority use retail channels while increased usage of on-trade channels
Online channel shows potential to low-mid earners and is yet to be fully developed
Figure 23: Usage comparison of RTD tea purchase channels, 2015 versus 2014
Most consumers used at least three channels to purchase tea drinks
Figure 24: Repertoire of RTD tea drinks purchasing channels, December 2015

Drinking Occasions

Male high earners enjoy at-home occasions while female high earners prefer out-of-home occasions
Figure 25: RTD tea drinking occasions, December 2015
Figure 26: RTD tea drinking occasions, by gender and monthly household income December 2015

Product Innovations

Tropical fruit-flavoured tea drinks are most popular especially to female high earners
Figure 27: Preference on new product innovations, December 2015
Figure 28: Preference for new product innovations – females, by monthly household income, December 2015
Figure 29: Lipton Mango ve Egzotik Meyve Aromali Icecek (Mango and Exotic Fruit Ice Tea), Turkey, June 2015
Lower tier city residents prefer ingredient innovation
Figure 30: Preference on new product innovations, by city tier, December 2015
Figure 31: Emart Burdock Tea in South Korea, March 2016; AlowTea Té de Tamarindo con Aloe Vera (Tamarind Tea with Aloe Vera), Mexico, March 2016
Young females favour tea drinks with slimming claims
Figure 32: Preference on new product innovations, by gender and age, December 2015
Figure 33: Ito En Golden Oolong Tea in Japan, March 2016

Cluster Analysis

Figure 34: Target groups of consumer attitudes towards RTD tea drinks, December 2015
Group 1 – Traditional Tea Lovers
Figure 35: Tenwow Tea Drinks Jin Guan Yin (Tenwow Tea Drinks Jin), China, March 2015
Group 2 – Tea Drinks Adventurers
Figure 36: Liang Miao Xing Zui Li Jie Cha (Hangover Relieving Tea) in China, January 2016
Group 3 – Take-all Drinkers
Figure 37: Woolworths Zoe Hippo Mixed Berry Flavoured Iced Tea with Apple Drink Blend in South Africa, September 2015
Group 4 – Tea Culture Converters
Figure 38: Aeon Topvalu Royal Milk Tea in Japan, March 2016

Mintropolitans

Demographics and Characteristics
Lifestyle
Figure 39: Demographic profile of Mintropolitans versus non-Mintropolitans, by gender, age, and children in household, December 2015
Figure 40: Demographic profile of Mintropolitans versus non-Mintropolitans, by monthly personal income, monthly household income, and city tier, December 2015

Appendix – Methodology and Definitions

Methodology
Fan chart forecast
Mintropolitans – Definition
Abbreviations

List of Table

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