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Tea Infusions and Tea Drinks - China - April 2017

Published By :

Mintel

Published Date : May 2017

Category :

Beverages

No. of Pages : N/A

The rising health awareness of consumers in China has driven consumption increase in tea infusions and RTD tea drinks markets. However, tea infusions face the challenges of attracting women and younger consumers; tea drinks face the challenges of demand for authenticity, relatively lower consumption frequency, and threat from similar healthy categories such as bottled water and juice. As in the current market, tea infusions have been consumed more via in-home occasions whereas RTD tea drinks have been drunk more in out-of-home occasions, future development and growth may depend on exploring more consumption occasions, highlighting freshness and authenticity of tea or tea drinks and targeting specific consumers with functional needs.

Table of Content

OVERVIEW
What you need to know
Covered in this Report

EXECUTIVE SUMMARY
The market
Tea infusions market – stable growth for both volume and value
Figure 1: Retail market volume of tea infusions* in China, 2011-21
Figure 2: Retail market value of tea infusions* in China, 2011-21
RTD tea drinks market – Slowing down, especially in volume
Figure 3: Retail market volume of tea drinks in China, 2011-21
Figure 4: Retail market value of tea drinks in China, 2011-21
Companies and brands
Figure 5: Retail market share of leading tea drinks players, China, 2015-16
The consumer
Freshly brewed tea leaves have the highest consumption frequency
Figure 6: Drinking frequency* in the last 12 months, December 2016
Green tea sees the greatest consumption increase
Figure 7: Penetration and trends on different types, December 2016
Tea infusions have more in-home occasions while RTD tea out-of-home
Figure 8: Consumption occasions, December 2016
RTD tea drinks with slimming benefits become more desirable
Figure 9: Purchase triggers for RTD tea drinks, December 2015 vs December 2016
What we think

ISSUES AND INSIGHTS
How can RTD tea drinks highlight “authenticity” and boost consumption frequency?
The facts
The implications
Figure 10: Farmer’s Tea, Vietnam, 2017
Figure 11: Tea drinks with low/no/reduced sugar claim, international market, 2017
RTD tea drinks need to offer what freshly brewed tea cannot
The facts
The implications
Figure 12: Steaz cactus water and green tea drinks range, international market, 2016
Figure 13: Twinings – Morning tea and sleep tea, Australia 2017
Figure 14: tea drinks with herbal and other ingredients labels, 2016-17
How can tea infusions increase consumption frequency amongst females?
The facts
The implications
Figure 15: Botanical teas with health claims, international market, 2016-17
Figure 16: Teas with beauty benefits, China and international markets, 2016
Figure 17: Charm Villa, goldfish tea bag

THE MARKET – WHAT YOU NEED TO KNOW
Stable growth of tea infusions for both volume and value
RTD tea drinks market – slowing down, especially volume
Herbal tea drinks see steady growth
Sugar is an enemy to RTD tea segment growth

MARKET SIZE AND FORECAST
Tea infusions market – stable growth for both volume and value
Figure 18: Retail market volume of tea infusions* in China, 2011-21
Figure 19: Retail market value of tea infusions* in China, 2011-21
RTD tea drinks market – slowing down, especially in volume
Figure 20: Retail market volume of tea drinks in China, 2011-21
Figure 21: Retail market value of tea drinks in China, 2011-21

MARKET SEGMENTATION
The tea infusion thrives thanks to a strong tea culture and reputation
Figure 22: Tea infusion format types in new products launches, China, 2015-16
Figure 23: Tea infusions form types in new products launches, global, 2015-16
Figure 24: Export and import value of tea (with or without added spices), 2015-16
Figure 25: Export and import volume of tea (with or without added spices), China, 2015-16
RTD tea drink segments
Herbal tea drinks see steady growth while others decline
Figure 26: Retail value of RTD tea drink segments, RMB bn, 2011-16

MARKET FACTORS
Sugar is an enemy to RTD tea segment growth
Figure 27: Tea drinks with low/no/reduced sugar, China, 2011-17
Rising popularity of various genres of tea outlets attracting young consumers
China’s tea culture ensures a steadily high consumption level

KEY PLAYERS – WHAT YOU NEED TO KNOW
A highly concentrated tea drinks market
Diverse competitive strategies: packaging, flavour, cross-category and on-trade tea drinks
Top product claims and flavours for tea infusions and tea drinks

MARKET SHARE – TEA DRINKS
Master Kong is losing share
Figure 28: Master Kong’s placement in the TV series adapted from popular mobile game “Noble Aspirations”, 2016
Jiaduobao and Wanglaoji are gaining share
Figure 29: JDB and WLJ, 2015-17
Uni-president wins through star product launches
Figure 30: Retail market share of leading tea drinks players, China, 2015-16

COMPETITIVE STRATEGIES
Competing with unique packaging and creative flavours
Figure 31: Xiao Ming Tong Xue’s lactobacillus flavoured tea, China, 2016-17
Cross-category innovations
Tea/juice
Figure 32: Cha Pai, China, 2016
Wahaha – Tea/coffee
Figure 33: Wahaha Teaka Cha Ka, China, 2017
Starbucks to launch RTD tea products and sees potential in China
Figure 34: Teavana loose tea, Canada, 2014
High tea polyphenols content may trade up consumers

WHO’S INNOVATING?
Tea infusions – Product claims
Figure 35: Top 10 product claims in hot beverages (tea), China, 2012-16
Tea with time/speed and on-the-go features
Figure 36: tea innovations with time/speed and on-the-go claims, international market, 2016
Health and functional tea
Figure 37: Tea with slimming claims, China, 2016-17
Figure 38: Tea with wider health and functional claims, international market, 2017
Alcohol-flavoured tea – Indulgence, responsibility and in-home occasion
Figure 39: Alcohol-flavoured tea infusions, international market, 2015-16
Tea infusions – Flavours
Figure 40: Top 10 flavours in tea, China, 2015-16
Figure 41: Selected various flavoured tea, China, 2016-17
Tea drinks – Product claims
Figure 42: Top 10 product claims in RTDs (RTD tea), China, 2012-16
Functional benefits – Herbal tea drinks stand out
Figure 43: Tea drinks with functional benefits, China, 2016
Ethical, environmentally friendly packaged tea drinks
Figure 44: Tea drinks with environmentally friendly package, China, 2016-17
Tea drinks with less fat and calorie are becoming even more popular
Figure 45: selected tea drinks without/reduced transfat, fat or calorie, China, 2016-17
Tea drinks – Flavours
Figure 46: Top 10 flavours in RTD tea, China, 2015-16
Figure 47: Unflavoured/plain tea drinks, China, 2016-17
Figure 48: tea drinks with lemon flavour and herbal tea drinks, 2016-17
Marketing inspirations for flavoured tea drinks – Lipton ice tea

THE CONSUMER – WHAT YOU NEED TO KNOW
Men drink freshly-brewed tea more frequently than women
Tea infusions have more in-home occasions while RTD tea out-of-home
Age differentiates in drinking different tea types
Master Kong RTD tea drinks have the highest penetration
Mintropolitans are frequent users for various tea categories

DRINKING FREQUENCY
Freshly brewed tea leaves have the highest consumption frequency
Figure 49: Drinking frequency* in the last 12 months, December 2016
Men drink freshly-brewed tea more frequently than women
Figure 50: Drinking frequency in the last 12 months (once a day or more and several times a week), by gender, December 2016

PENETRATION AND TRENDS ON DIFFERENT TEA TYPES
Green tea sees the greatest consumption increase
Figure 51: Penetration and trends on different types, December 2016
Age as a differentiator in drinking different tea types
Figure 52: Penetration and trends on different types, by age and drunk more, December 2016

CONSUMPTION OCCASIONS
Tea infusions have more in-home occasions while RTD tea out-of-home
Figure 53: Consumption occasions, December 2016

RTD TEA BRAND CONSUMED MOST OFTEN
Master Kong RTD tea drinks enjoy the highest penetration
Figure 54: RTD tea brand consumed most often in the last 12 months, December 2016
Figure 55: RTD tea brand consumed most often in the last 12 months – Master Kong, by age, monthly household income, and marital status, December 2016
Consumers in their 30s and mid-earners prefer Uni-president
Figure 56: RTD tea brand consumed most often in the last 12 months – Uni-president, by age, monthly household income, and marital status, December 2016
High earners and women favour Lipton
Figure 57: RTD tea brand consumed most often in the last 12 months – Lipton, by age, monthly household income, and marital status, December 2016
Figure 58: Flirty Lady Lipton Black Tea, Greece, 2017
Consumers in their 40s and mid-west residents prefer Wahaha
Figure 59: RTD tea brand consumed most often in the last 12 months – Wahaha, by age, monthly household income, and marital status, December 2016

PURCHASE TRIGGERS FOR RTD TEA DRINKS
RTD tea drinks with slimming benefits become more desirable
Figure 60: Purchase triggers for RTD tea drinks, December 2015 vs December 2016
Figure 61: Purchase triggers for RTD tea drinks, by gender, monthly household income, and children in household, December 2016

DRINKING PREFERENCE
High freshness of tea leaves is most important to drinking experience
Figure 62: Drinking preference, December 2016
Figure 63: Drinking preference – High freshness of the tea leaves, by age, monthly household income and marital status, December 2016
Figure 64: Drinking preference – Made from tea leaves from a good origin, by age, monthly household income and marital status, December 2016

MEET THE MINTROPOLITANS
Mintropolitans are frequent users of various tea categories
Figure 65: Drinking frequency in the last 12 months, by Mintropolitans vs non-Mintropolitans, December 2016
Mintropolitans have significantly higher preference for green tea and pu'er tea
Figure 66: Penetration and trends on different types – Drunk more, by Mintropolitans vs non-Mintropolitans, December 2016
Mintropolitans favour international brands
Figure 67: RTD tea brand consumed most often in the last 12 months, by Mintropolitans vs non-Mintropolitans, December 2016
Mintropolitans consume more tea infusions and RTD tea drinks when having meals at home
Figure 68: Consumption occasions, by Mintropolitans vs non-Mintropolitans, December 2016

APPENDIX – MARKET SIZE AND FORECAST
Figure 69: Retail value sales for tea infusions, China, 2011-21
Figure 70: Retail volume sales for tea infusions, China, 2011-21
Figure 71: Retail value sales for tea drinks, China, 2011-21
Figure 72: Retail volume sales for tea drinks, China, 2011-21

APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

List of Table

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