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Tea Drinks - China - February 2014

Published By :

Mintel

Published Date : Feb 2014

Category :

Non-Alcoholic Drinks

No. of Pages : 275 Pages

The RTD tea drink market enjoyed a strong performance over 2008-10, with double-digit annual growth. This was fuelled by consumers’ increasing awareness of the negative health implications of drinking CSDs, and heavy investment in tea drinks by the established and new operators.
Table of Content

Introduction

In this report we answer the key questions:
Definition
Abbreviations

Executive Summary

The market
The future
Figure 1: Value retail sales of RTD tea drinks in China, 2008-18
Figure 2: Volume retail sales of RTD tea drinks in China, 2008-18
Market drivers
Urbanisation creates a larger consumer base with greater spending power
Healthy lifestyle gains popularity
Media highlights mislabelling of tea drinks
Low sugar price mitigates the pressure of increasing labour costs
Production innovation
New packaging becomes increasingly popular in NPD
No additives/preservatives remains the leading claim
New flavours and unflavoured tea drinks gain share in launches
The consumer
Bottled water is taking the lead
Figure 3: Tea drinks and other packaged drinks drunk in past 6 months, November 2013
Green tea enjoys a premium image and associations with a refreshing feeling
Figure 4: Correspondence map of qualities associated with selected types of tea drinks, November 2013
Retail channels dominate RTD tea purchases
Figure 5: Tea drink purchasing channels, November 2013
Health and safety remain major issues for consumers
Figure 6: Important choice factors when buying tea drinks, November 2013
Polarised views on flavours
Figure 7: Attitudes towards the flavour of tea drinks, November 2013
Premium RTD tea shows potential
Figure 8: General attitudes towards premium RTD tea drinks, November 2013
What we think

Issues in the Market

How can brands drive standout in the increasingly crowded plain flavour tea drink segment?
Figure 9: Added flavour as an important consideration factor, by income, November 2013
How can brands capitalise on consumers’ demand for RTD tea drinks with health benefits?
Figure 10: Attitudes towards tea drinks, November 2013
Should tea drinks only be served cold in summer and warm in winter?
Figure 11: Selected attitudes towards tea drinks, November 2013
How can brands reach women more effectively?
Figure 12: Tea drinks had in the past six months, by gender, November 2013

Trend Application

Trend: Mood to Order
Trend: Influentials
Mintel futures: Brand Intervention

Market Drivers

Key points
Urbanisation creates a larger consumer base with greater spending power
Figure 13: Disposable income of urban residents and urban population in China, 2000-11
Healthy lifestyles gain popularity
Figure 14: Types of health-related ingredient choices for food and drink, December 2012
Media highlights mislabelling of tea drinks
Low sugar price mitigates the pressure of increasing labour costs
Figure 15: Global wholesale sugar monthly price, 2009-13

Who’s Innovating?

Key points
New packaging becomes increasingly popular in NPD
Figure 16: New product launches by launch type in the China RTD tea drink market, 2011-13
No additives/preservatives remains the leading claim
Figure 17: New product launches by top 10 claims in the China RTD tea drink market, 2011-13
Figure 18: The Original Da hHong Pao by Bo Da Jian, Q2 2013
New flavours and unflavoured tea drinks gain share in launches
Figure 19: New product launches by top 10 flavours in the China RTD tea drink market, 2011-13
Figure 20: Products launched in Japan highlighting authentic tastes, 2012/13

Market Size, Forecast and Segment Performance

Key points
Sales by segment
Figure 21: Retail volume sales of tea drinks in China, by segment, 2011-12
Unusual volatility seen in the RTD tea drink market in recent years
Figure 22: Retail value and volume sales of RTD tea drinks in China, 2008-18
Steady but slowing growth expected in the RTD tea drink market
Figure 23: Value retail sales of RTD tea drinks in China, 2008-18
Figure 24: Volume retail sales of RTD tea drinks in China, 2008-18
Forecast methodology

Companies and Brands

Tingyi Holdings Corporation
Uni-president China Holding Ltd
Hangzhou Wahaha Group
JDB Group

The Consumer – Usage of Tea Drinks

Key points
Bottled water is taking the lead
Figure 25: Tea drinks and other packaged drinks drunk in past 6 months, November 2013
Lack of tea drinks suitable for female consumers
Figure 26: Weekly usage of tea drinks, by type, by gender, November 2013
Older consumers show heavier usage of Jasmine tea and herbal tea
Figure 27: Usage of traditional Chinese and Jasmine tea drinks, by age, November 2013
The potential of jasmine tea with health benefits in northern China
Heavy users of traditional tea show higher interest in plain taste and products designed for men
Figure 28: Selected attitudinal statements by heavy users of traditional Chinese tea drinks, November 2013

The Consumer – Qualities Associated with Different Types of Tea Drinks

Key points
Qualities associated with different types of tea drinks
Figure 29: Correspondence map of qualities associated with selected types of tea drinks, November 2013
Figure 30: Qualities associated with different types of tea drinks, November 2013
Green tea enjoys a premium image and associations with a refreshing feeling
Red tea is considered an indulgent drink
Traditional Chinese tea drinks are seen as relaxing
Authentic taste is the most pronounced attribute of milk tea
Attitudes towards different types of tea drinks by gender
Figure: Qualities associated with different types of tea drinks by gender, November 2013
Methodology

The Consumer – Tea Drink Purchasing Channels

Key points
Retail channels dominate RTD tea purchases
Figure 31: Tea drink purchasing channels, November 2013
Grocery stores reach young men more effectively than other channels
Figure 32: Purchase of RTD tea drink from grocery stores, by age and gender, November 2013
Hypermarkets suitable for premium products
Figure 33: Purchases of RTD tea drinks from hypermarkets, by gender, monthly personal income and city tier, November 2013
Cafés enjoy a premium image
Figure 34: Purchases of RTD tea drinks from café, by demographics, November 2013

The Consumer – Important Choice Factors

Key points
Health and safety remain major issues for consumers
Figure 35: Important choice factors when buying tea drinks, November 2013
Polarised opinions on added flavours
Lack of interest in brands
The tea in tea drink is not a key consideration
Figure 36: Oolong tea from Shiyi, Q1 2013
Consumers from tier one cities shows greater interest in low sugar and low calorie tea drinks
Figure 37: Calories and sugar as factors when buying RTD tea drinks, by city tier, November 2013
Authentic taste appeals most to heavy users of traditional Chinese tea
Figure 38: Authentic taste as the most important factor, by usage of traditional Chinese tea, November 2013
Figure 39: Ayataka from Coca-Cola Japan, March 2012
Figure 40: The Original Da Hong Pao by Bo Da Jian, Q2 2013

The Consumer – Attitudes towards Positioning

Key points
Polarised views on flavours
Figure 41: Attitudes towards the flavour of tea drinks, November 2013
Consumers are willing to pay more for new flavours
Warm RTD tea drinks have potential
Figure 42: Tenwow’s honey date tea launched in 2013
Young consumers are more likely to prefer RTD tea cold and are less likely to see them as seasonal
Figure 43: Selected attitudes towards RTD tea drinks, by age, November 2013
Tonic herbal tea faces barriers in northern China
Figure 44: Agreement with the statement “I dislike the taste of tonic herbs in RTD herbal teas”, by city, November 2013

The Consumer – General Attitudes towards RTD Tea

Key points
Premium RTD tea shows potential
Figure 45: General attitudes towards premium RTD tea drinks, November 2013
Women show greater interest than men in premium RTD tea drinks
Figure 46: Agreement with the statement “There is a lack of premium ready-to-drink tea drinks to choose from”, by gender and demographics, November 2013
Lack of brand loyalty in RTD tea category
Figure 47: General attitudes towards brands in RTD tea drinks, November 2013
Figure 48: Tenwow’s Sumiyaki milk tea launched in Q3 2013
High earners and consumers in smaller cities show greater brand loyalty
Figure 49: Agreement with the statement “It’s better to stick with the same brand of ready-to-drink tea drinks than trying a new brand”, by city tier and income, November 2013
Domestic brands enjoy advantages

The Consumer – Target Groups

Key points
Five groups identified
Figure 50: Cluster analysis, November 2013
Price sensitive
Who are they?
Figure 51: Price sensitive, by selected demographics, November 2013
What do they think?
Marketing implications
Xiaozi
Who are they?
Figure 52: Xiaozi, by selected demographics, November 2013
What do they think?
Figure 53: Agreement with the statement “I would be interested in trying more plain tea drinks” by cluster group, November 2013
Marketing implications
Disengaged
Who are they?
Figure 54: Disengaged, by selected demographics, November 2013
What do they think?
Marketing implications
Loyal premium lovers
Who are they?
Figure 55: Loyal premium lovers, by selected demographics, November 2013
What do they think?
What types of tea drinks do they drink?
Marketing implications
Figure 56: Heyseng’s marketing campaign in 2013
Brand churners
Who are they?
Figure 57: Brand churners, by selected demographics, November 2013
What do they think?
Drinking habits
Marketing implications

Appendix – Tea Drinks Had In Past 6 Months

Figure 58: Tea drinks had in past 6 months, November 2013
Figure 59: Tea drinks had in past 6 months, November 2013
Figure 60: Most popular tea drinks had in past 6 months – Green tea/iced green tea, by demographics, November 2013
Figure 61: Next most popular tea drinks had in past 6 months – Green tea/iced green tea, by demographics, November 2013
Figure 62: Most popular tea drinks had in past 6 months – Red tea/iced red tea, by demographics, November 2013
Figure 63: Next most popular tea drinks had in past 6 months – Red tea/iced red tea, by demographics, November 2013
Figure 64: Most popular tea drinks had in past 6 months – Jasmine tea, by demographics, November 2013
Figure 65: Next most popular tea drinks had in past 6 months – Jasmine tea, by demographics, November 2013
Figure 66: Most popular tea drinks had in past 6 months – Traditional Chinese tea, by demographics, November 2013
Figure 67: Next most popular tea drinks had in past 6 months – Traditional Chinese tea, by demographics, November 2013
Figure 68: Most popular tea drinks had in past 6 months – Tonic herb tea, by demographics, November 2013
Figure 69: Next most popular tea drinks had in past 6 months – Tonic herb tea, by demographics, November 2013
Figure 70: Most popular tea drinks had in past 6 months – Milk tea, by demographics, November 2013
Figure 71: Next most popular tea drinks had in past 6 months – Milk tea, by demographics, November 2013
Figure 72: Most popular tea drinks had in past 6 months – Other tea drinks, by demographics, November 2013
Figure 73: Next most popular tea drinks had in past 6 months – Other tea drinks, by demographics, November 2013
Figure 74: Most popular drinks had in past 6 months – Juice, by demographics, November 2013
Figure 75: Next most popular drinks had in past 6 months – Juice, by demographics, November 2013
Figure 76: Most popular drinks had in past 6 months – Bottled water, by demographics, November 2013
Figure 77: Next most popular drinks had in past 6 months – Bottled water, by demographics, November 2013
Figure 78: Most popular drinks had in past 6 months – Carbonated soft drinks, by demographics, November 2013
Figure 79: Next most popular drinks had in past 6 months – Carbonated soft drinks, by demographics, November 2013
Figure 80: Most popular drinks had in past 6 months – Ready-to-drink coffee, by demographics, November 2013
Figure 81: Next most popular drinks had in past 6 months – Ready-to-drink coffee, by demographics, November 2013
Figure 82: Tea drinks had in past 6 months, by most popular tea drink purchasing channels, November 2013
Figure 83: Tea drinks had in past 6 months, by next most popular tea drink purchasing channels, November 2013
Figure 84: Tea drinks had in past 6 months, by other tea drink purchasing channels, November 2013
Repertoire anaylsis
Figure 85: Repertoire of all soft drinks, November 2013
Figure 86: Repertoire of all soft drinks, by demographics, November 2013
Figure 87: Repertoire of ready-to-drink tea drinks, November 2013
Figure 88: Repertoire of ready-to-drink tea drinks, by demographics, November 2013
Figure 89: Repertoire of all soft drinks, by target groups, November 2013
Figure 90: Repertoire of tea drink purchasing channels, November 2013
Figure 91: Repertoire of tea drink purchasing channels, by demographics, November 2013
Figure 92: Repertoire of tea drink purchasing channels, by target groups, November 2013

Appendix – Attitudes towards Different Types of Tea Drinks

Figure 93: Attitudes toward different types of tea drinks, November 2013
Figure 94: Attitudes toward different types of tea drinks – For the young generation, by demographics, November 2013
Figure 95: Attitudes toward different types of tea drinks – Indulgent drink, by demographics, November 2013
Figure 96: Attitudes toward different types of tea drinks – A nice flavour, by demographics, November 2013
Figure 97: Attitudes toward different types of tea drinks – Relaxing, by demographics, November 2013
Figure 98: Attitudes toward different types of tea drinks – Energy boosting, by demographics, November 2013
Figure 99: Attitudes toward different types of tea drinks – Traditional Chinese tea, by demographics, November 2013
Figure 100: Attitudes toward different types of tea drinks – Authentic taste, by demographics, November 2013
Figure 101: Attitudes toward different types of tea drinks – Refreshing, by demographics, November 2013
Figure 102: Attitudes toward different types of tea drinks – Bland, by demographics, November 2013
Figure 103: Attitudes toward different types of tea drinks – Good for the health, by demographics, November 2013
Figure 104: Attitudes toward different types of tea drinks – Premium image, by demographics, November 2013
Figure 105: Attitudes toward different types of tea drinks – None of the above, by demographics, November 2013

Appendix – Tea Drink Purchasing Channels

Figure 106: Tea drink purchasing channels, November 2013
Figure 107: Most popular tea drink purchasing channels, by demographics, November 2013
Figure 108: Next most popular tea drink purchasing channels, by demographics, November 2013
Figure 109: Other tea drink purchasing channels, by demographics, November 2013

Appendix – Important Consideration Factors When Buying Tea Drinks

Figure 110: Important consideration factors when buying tea drinks, November 2013
Figure 111: Most popular important consideration factors when buying tea drinks – Rank 1, by demographics, November 2013
Figure 112: Next most popular important consideration factors when buying tea drinks – Rank 1, by demographics, November 2013
Figure 113: Other important consideration factors when buying tea drinks – Rank 1, by demographics, November 2013
Figure 114: Most popular important consideration factors when buying tea drinks – Rank 2, by demographics, November 2013
Figure 115: Next most popular important consideration factors when buying tea drinks – Rank 2, by demographics, November 2013
Figure 116: Other important consideration factors when buying tea drinks – Rank 2, by demographics, November 2013
Figure 117: Most popular important consideration factors when buying tea drinks – Rank 3, by demographics, November 2013
Figure 118: Next most popular important consideration factors when buying tea drinks – Rank 3, by demographics, November 2013
Figure 119: Other important consideration factors when buying tea drinks – Rank 3, by demographics, November 2013
Figure 120: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Green tea/iced green tea, November 2013
Figure 121: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Green tea/iced green tea, November 2013
Figure 122: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Red tea/iced red tea, November 2013
Figure 123: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Red tea/iced red tea, November 2013
Figure 124: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Jasmine tea, November 2013
Figure 125: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Jasmine tea, November 2013
Figure 126: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Traditional Chinese tea, November 2013
Figure 127: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Traditional Chinese tea, November 2013
Figure 128: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Tonic herb tea, November 2013
Figure 129: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Tonic herb tea, November 2013
Figure 130: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Milk tea, November 2013
Figure 131: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Milk tea, November 2013
Figure 132: Important consideration factors when buying tea drinks, by most popular tea drinks had in past 6 months – Other tea drinks, November 2013
Figure 133: Important consideration factors when buying tea drinks, by next most popular tea drinks had in past 6 months – Other tea drinks, November 2013
Figure 134: Important consideration factors when buying tea drinks, by most popular drinks had in past 6 months – Juice, November 2013
Figure 135: Important consideration factors when buying tea drinks, by next most popular drinks had in past 6 months – Juice, November 2013
Figure 136: Important consideration factors when buying tea drinks, by drinks had in past 6 months – Bottled water, November 2013
Figure 137: Important consideration factors when buying tea drinks, by most popular drinks had in past 6 months – Carbonated soft drinks, November 2013
Figure 138: Important consideration factors when buying tea drinks, by next most popular drinks had in past 6 months – Carbonated soft drinks, November 2013
Figure 139: Important consideration factors when buying tea drinks, by most popular drinks had in past 6 months – Ready-to-drink coffee, November 2013
Figure 140: Important consideration factors when buying tea drinks, by next most popular drinks had in past 6 months – Ready-to-drink coffee, November 2013

Appendix – Attitudes towards Flavour of Tea Drinks

Figure 141: Attitudes towards the flavour of tea drinks, November 2013
Figure 142: Most popular attitudes towards the flavour of tea drinks, by demographics, November 2013
Figure 143: Next most popular attitudes towards the flavour of tea drinks, by demographics, November 2013
Figure 144: Other attitudes towards the flavour of tea drinks, by demographics, November 2013

Appendix – General Attitude towards Tea Drinks

Figure 145: General attitudes towards tea drinks, November 2013
Figure 146: Agreement with the statement ‘Ready-to-drink tea drinks are more convenient for drinking compared with freshly brewed tea’, by demographics, November 2013
Figure 147: Agreement with the statement ‘Freshly-made tea drinks from specialty tea outlets taste better than ready-to-drink tea drinks’, by demographics, November 2013
Figure 148: Agreement with the statement ‘Ready-to-drink tea drinks are more catered to Chinese people’s taste compared to ready-to-drink coffee’, by demographics, November 2013
Figure 149: Agreement with the statement ‘Ready-to-drink tea drinks from Chinese brands are more authentic in taste than those from international brands’, by demographics, November 2013
Figure 150: Agreement with the statement ‘It’s better to stick to the same brand of ready-to-drink tea drinks than trying a new brand’, by demographics, November 2013
Figure 151: Agreement with the statement ‘Long established Chinese ready-to-drink tea brands are more reliable than international brands’, by demographics, November 2013
Figure 152: Agreement with the statement ‘There is a lack of premium ready-to-drink tea drinks to choose from’, by demographics, November 2013
Figure 153: Agreement with the statement ‘Freshly brewed tea is a good reflection of hospitality than serving ready-to-drink tea drinks to guests/clients’, by demographics, November 2013
Figure 154: Agreement with the statement ‘Premium ready-to-drink tea drinks taste better than those of lower price’, by demographics, November 2013
Figure 155: Agreement with the statement ‘It’s worth paying more for ready-to-drink tea drinks made from loose tea leaves from good origin’, by demographics, November 2013
Figure 156: Agreement with the statement ‘Premium ready-to-drink tea drinks are more suitable for socializing occasions than drinking alone’, by demographics, November 2013

Appendix – Further Analysis

Figure 157: General attitudes towards tea drinks, by target groups, November 2013
Figure 158: Attitudes towards the flavour of tea drinks, by target groups, November 2013

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