The China RTD tea drinks market is fairly mature and has seen steady yet slow growth in recent years due to increasing competition from within the category and from alternative non-alcoholic drinks segments (such as coffee). Teabags, though still a niche market, is on a fast track due to a more premium product offering which is driven by local startup players. Innovation in both segments appeals to a core target audience – young, women under 30 often from a more affluent demographic. Though the COVID-19 outbreak has introduced financial pressure and economic uncertainty, it will have a small boost in this essential category once the lockdown lifts.

As consumers move past the COVID-19 outbreak, tea drinks which are already perceived to be healthy and natural have an advantage in staying top of mind in the non-alcoholic drinks category. The heightened health awareness and potential interest in functional tea drinks will likely have a positive influence in this category. To stand out from the competition, businesses are encouraged to stay agile in product innovation (eg additional functional benefits, new packaging formats) and utilise social e-commerce platforms to promote chilled tea drinks.

• The impact of COVID-19 on consumer behaviour and the tea drinks market

• What consumers are looking for in the post-COVID-19 market

• The value of individual segments in 2019

• Launch activity and consumers’ interest in innovation

• Opportunities in tea’s functional benefits

This Report examines the China market for tea infusions and tea drinks. The following tea categories are included in the scope of the Report:

• All packaged black, green and other RTD tea drinks (herbal tea, milk tea and other tea such as oolong tea and jasmine tea)

• Packaged standard and other black, green, oolong, white teas, fruit & flower and herbal infusions, yerba mate and Pu'er Tea.

• Market size is based on sales through all retail channels (off-trade) and non-retail sales (on-trade or HoReCa)

We define those consuming tea drinks ‘once a day or more’ and ‘several times a week’ as heavy users, ‘2-3 times a month’ and ‘once a month or less’ as light users.