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Tea Drinks - China - July 2015

Published By :

Mintel

Published Date : Jul 2015

Category :

Non-Alcoholic Drinks

No. of Pages : N/A


Consumers in the RTD tea drinks market have become savvier. Simple extrinsic cues such as product prices achieve limited impact on consumers’ perception and purchase decision-making process. The era of having simple one-for-all products is long gone. Consequently, finding the right communication channels combined with specific claims to target various groups of RTD tea drinkers has become of paramount importance. Wisely using health and beauty claims can help RTD tea brands gain a foothold in booming new territories.

Introduction

Definition
Methodology
Abbreviations

Executive Summary

The market
Figure 1: Retail market value of RTD tea drinks in China, 2010-20
Figure 2: Retail total volume of RTD tea drink market in China, 2010-20
Innovations in the market
Targeting young consumers with premium products
Category blurring starts to emerge in the RTD tea market
Added health benefits become an important pathway for premiumisation
Size matters: Large bottles growing fast
Ethical claims gaining momentum across East Asia market
Figure 3: Claims of newly launched products in the RTD tea drink market in East Asia, 2010-15
Iced tea is under threat
Figure 4: RTD tea consumption change, April 2015
RTD tea drinks remain a drink for causal occasions
Figure 5: RTD tea drinking occasions, April 2015
RTD tea drink market remains dominated by retail channels
Figure 6: Usage of RTD tea purchase channels, April 2015
Word-of-mouth plays a key role
Figure 7: Information channels for RTD tea drink buyers, April 2015
Brand equity remains strong
Figure 8: Attributes associated with premium RTD tea drinks, April 2015
Tea drinks are suitable all-year-round
Figure 9: Attitudes towards seasonality of RTD tea drinks, April 2015
Consumers are seeking new types of RTD tea drinks
Figure 10: Attitudes towards taste and flavours, April 2015
Natural ingredients as a claim enjoy price premium
Figure 11: Attitudes towards health of RTD tea drinks, April 2015
What we think

Issues and Insights

How to attract the hard-to-capture young consumers?
Facts
Implications
Figure 12: Agreement with the statement “manufactured by well-known brand” as an attribute associated with premium image of RTD tea drinks, by age, April 2014
Figure 13: The association of high-end packaging with premium image of RTD tea drinks, by age, April 2014
Figure 14: Xiaoming Tongxue tea drink launched by Uni-President in China, Q2 2015
How to target female drinkers using occasion- and location-based strategies?
Facts
Implications
Figure 15: Penetration of chained health and beauty retailer, by gender and age, April 2015
How to tap into the premium segment?
Facts
Implications

Trend Application

Trend: Extend My Brand
Figure 16: Beauty tea with 16 herbs from Asahi launched in Japan, Q2 2013
Trend: Influentials
Trend: The Real Thing

Market Size and Forecast

Key points
Growth in the market is slowing down
Figure 17: Retail market value of RTD tea drinks in China, 2010-20
Figure 18: Retail market value of RTD tea drinks in China, 2010-20
Figure 19: Retail total volume of RTD tea drinks in China, 2010-20
Forecast methodology

Market Segmentation

Key points
The shares of black and green tea are being eroded
Figure 20: Segment performance of RTD tea drinks in China, by value, 2010-15
Figure 21: Segment performance of RTD tea drinks in China, by volume, 2010-15
Figure 22: Year-on-year growth rate of different types of RTD tea drinks in China, by value, 2011-15
Figure 23: Year-on-year growth rate of different type of RTD tea drinks in China, by volume, 2011-15

Market Share

Key points
The market becomes more consolidated
Figure 24: Market share of leading companies in the RTD tea drink market in China, 2013-14
JDB group continues to grow despite losing court battles
Figure 25: Market shares of two leading brands in the herbal tea drink segment, 2013-14

Who’s Innovating?

Key points
Targeting young consumers with premium products
Figure 26: Xiaoming Tongxue, Cold brewed green tea from Uni-President, Q2 2015
Category blurring starts to emerge in the RTD tea market
Figure 27: Lychee black tea from Ito EN, launched in China, Q2 2015
Figure 28: Ito En’s Healthy Ginseng Tea, launched in Japan, Q4 2014
Added health benefits become an important pathway for premiumisation
Figure 29: Selected RTD tea drinks with specific health claims, Q2 2015
Size matters: large bottles growing fast
Figure 30: Bottle sizes of new product launched in East Asian market, 2010-14
Ethical claims gaining momentum across East Asia market
Figure 31: The claims of newly launched products in the RTD tea drink market in East Asia, 2010-15
Figure 32: The claims of newly launched products in the RTD tea drink market in China, 2010-15

Brands and Companies

Key points
Tingyi Holding Corporation
Product innovation
Marketing campaigns
Uni-President China Holdings, Ltd.
Product innovation
Marketing campaigns
JDB Group
Product innovation
Marketing campaigns

The Consumer – Changes in Purchase Behaviour

Key points
Iced tea is under threat
Figure 33: RTD tea consumption change, April 2015
Green tea is losing young consumers
Figure 34: Green tea consumption change, by age, April 2015
Men in their 40s are more likely to drink traditional Chinese tea
Figure 35: Consumption change in traditional Chinese tea, by gender and age, April 2015
Figure 36: Aromatic Jasmine and Oolong Tea Blend from Fancl launched in Japan, Q2 2013
Figure 37: Beauty tea with 16 herbs from Asahi launched in Japan, Q2 2013

The Consumer – Drinking Occasions

Key points
RTD tea drinks remain as a drink for causal occasions
Figure 38: RTD tea drinking occasions, April 2015
Figure 39: Seulgi tea launched in South Korea by Lotte Chilsung Beverage, Q3 2014
Women tend to drink RTD tea when eating out and socialising at home…
Figure 40: Selected RTD tea drinking occasions, by gender, April 2015
Figure 41: Muni Pu-er tea launched in Hong Kong, Q3 2011
Figure 42: Every Morning’s Oolong tea launched in Hong Kong, Q2 2015
Figure 43: Supreme Meta Tea, Tao Ti from Telford International, Launched in Hong Kong, Q2 2015
…and men are more likely to drink RTD tea when participating in sports activities
Figure 44: Selected by RTD tea drinking occasions, by gender, April 2015
Young consumers tend to drink RTD tea when working and studying
Figure 45: Drinking RTD tea when study/working, by age, April 2015
Figure 46: RTD tea drinks using new harvest and new tea leaves of the year as the key selling point, Launched in Japan, Q2 2015
Regional difference plays a key role
Figure 47: Selected RTD tea drinking occasions, by city, April 2015
On-trade channels facing difficulties to attract experience with RTD tea drinks
Figure 48: Penetration of drinking RTD tea drinks in on-trade channels, by occasion repertoire, April 2015

The Consumer – Purchasing Channels

Key points
RTD tea drink market remains dominated by retail channels
Figure 49: Usage of RTD tea purchase channels, April 2015
Supermarket and hypermarket attract most RTD tea drinkers
Figure 50: RTD tea purchasing channels, April 2015
Supermarkets more attractive to male drinkers, hypermarkets appeal to female drinkers
Figure 51: Selected purchasing channels of RTD tea drink, by gender, April 2015
Beauty retailers present a rare opportunity to reach young female drinkers
Figure 52: Penetration of chained health and beauty retailers, by gender and age, April 2015
Figure 53: Aromatic Jasmine and Oolong tea drink, launched in Japan, Q2 2013
Online market is yet to be fully developed but shows potential
Vending machines only attract single and young drinkers
Figure 54: Usage of vending machines, by gender, April 2015

The Consumer – Information Channels Used

Key points
Word-of-mouth plays a key role
Figure 55: Information channels for RTD tea drink buyers, April 2015
Passive communication strategies works better to reach male consumers
Figure 56: Selected information channels, by gender, April 2015
High earners tend to use niche information channels
Figure 57: Selected information channels, by household monthly income, April 2015

The Consumer – Attributes Associated with Premium Products

Key points
Brand equity remains strong
Figure 58: Attributes associated with premium RTD tea drinks, April 2015
Figure 59: Ginger tea drink, launched in Japan by Nagatanien, Q1 2014
Well-known brands find it hard to attract young consumers
Figure 60: Agreement with the statement “manufactured by well-known brand” as an attribute associated with premium image of RTD tea drinks, by age, April 2014
Figure 61: Association of high-end packaging with premium image of RTD tea drinks, by age, April 2014
Figure 62: Ignite baijiu product launched in China, Q1 2015
Figure 63: Xiaoming Tongxue tea drink launched by Uni-President in China, Q2 2015
Sophistication works well in premiumisation
Figure 64: Kirin’s Ogon Tekkan green tea, launched in Japan, Q3 2014
Figure 65: Ito En’s Deep steamed green tea, launched in Japan, Q3 2014
Tea leaves as a claim works better when targeting higher tier cities
Figure 66: Selected attributes associated with premium image in the RTD tea drink market, by city tier, April 2015
RTD tea drinks with health benefits encourage female drinkers to trade up
Figure 67: Association between additional health benefits and premium image of RTD tea drinks, by gender, April 2015
Figure 68: Pokka’s relaxing tea product launched in Japan, Q2 2012
Older consumers prefer pure tea taste without added flavours
Figure 69: Association between no added flavour and premium image of RTD tea drinks, by age, April 2015

The Consumer – Attitudes towards Seasonality

Key points
Tea drinks are suitable all-year-round
Figure 70: Attitudes towards seasonality of RTD tea drinks, April 2015
Figure 71: Ginger tea drink launched in Japan by Nagatanien, Q1 2014
Seasonal RTD tea drinks tend to be a lifestyle statement
Figure 72: Agreement with the statement “I would like to see more RTD tea drinks designed for different seasons” by consumer classification, April 2015
Figure 73: Selected products with seasonality claims, Q1 2015
Figure 74: Kirin’s Spring Blossom peach tea, launched in Japan, Q1 2014

The Consumer – Attitudes towards Taste and Flavours

Key points
Consumers are seeking new types of RTD tea drinks
Figure 75: Attitudes towards taste and flavours, April 2015
Figure 76: Tenwow’s Golden Pu’er and Golden Guanyin RTD tea drinks launched in China, Q2 2015
Figure 77: Suntory’s New Harvest green tea product, launched in Japan, Q2 2015
Young consumers find sweet taste acceptable
Figure 78: Agreement with the statement “Most of the RTD tea drinks available are too sweet”, by age, April 2015

The Consumer – Attitudes towards Health and Functionality

Key points
Natural ingredients as a claim enjoy price premium
Figure 79: Attitudes towards health benefits of RTD tea drinks, April 2015
Figure 80: Grape rose tea from The Wizardry, launched in China, Q2 2015
Figure 81: Lemon green tea from Dailyherb, launched in China, Q2 2014
Functionality drives the future development of the RTD tea drink market
Figure 82: Attitudes towards the functionality of RTD tea drinks, April 2015
Figure 83: Catechin green tea from Ito En, launched in Japan, Q4 2014

The Consumer – Meet the Mintropolitans

Key points
Why Mintropolitans?
Who are they?
Figure 84: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 85: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Seasonal RTD tea drinks tend to be lifestyle statement
Figure 86: Agreement with the statement “I would like to see more RTD tea drinks designed for different seasons” by consumer classification, April 2015
Figure 87: Kirin’s Spring Blossom peach tea, launched in Japan, Q1 2014

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