Table of Contents
Executive Summary
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- Market and competition
- The consumer
- Dairy drinks hold essential roles while carbonated soft drinks witness loss of frequent drinkers
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- Figure 1: Consumption frequency, November 2020
- Diversified purposes reveal the changing role of non-alcoholic drinks
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- Figure 2: Consumption purpose, November 2020
- Reduced negative ingredients are as desired as fortified nutrients
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- Figure 3: Desired attributes, November 2020
- Probiotics, cereal/grains and flowers can drive healthiness without sacrificing taste
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- Figure 4: Ingredient perception, November 2020
- Visualise nutritional information to expand consumer reach beyond novel flavour seekers
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- Figure 5: Purchase triggers for blurred beverage, November 2020
- Juice and dairy drinks are ideal platforms for beverage blurring
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- Figure 6: Blurring preference, November 2020
- What we think
Issues and Insights
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- Enhance the sensational experience beyond flavour
- The facts
- The implications
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- Figure 7: Product examples of non-alcoholic drinks with enhanced texture, China, 2020
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- Figure 8: HeyTea 2020 colour code, China
- Don’t leave the choice of ‘plus’ or ‘minus’ to consumers
- The facts
- The implications
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- Figure 9: Product examples of non-alcoholic drinks with both plus and minus claims, China, 2020
- Redefine the indulgence demand under rising health awareness
- The facts
- The implications
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- Figure 10: Product examples of blurred alcoholic drinks, Australia, Japan and Taiwan, China, 2020-21
- Figure 11: Suntory Horoyoi Alcoholic Drink
Market Factors
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- Consumption will be more driven by health under stable spending
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- Figure 12: Change in spending on non-alcoholic drinks and in-home food, February 2020 to January 2021
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- Figure 13: Change of life priorities – higher priority, April-September 2020
- High penetration of tea houses sets up sensational expectation and brings challenges to packaged products
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- Figure 14: Food purchase and consumption behaviour, November 2020
- Updates on ingredients drive product premiumisation
Innovation Highlights
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- Drinking yogurt replaced juice as the most active category with NPD launches
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- Figure 15: New products launched in non-alcoholic drinks, by subcategory, China, 2016-20
- Sugar, fat and calorie reduction claims are mainstreaming
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- Figure 16: Top growing claims on new products, by category, China, 2016-20
- Build new sensation around bubbly taste
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- Figure 17: Product examples of Yuan Qi Sen Lin Man Fen! series, China, 2020
- Figure 18: Nitro Pepsi, 2019
- Enhance consumption experience with serving temperature
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- Figure 19: Product examples of Coca-Cola’s hot beverages, China, 2020-21
- Figure 20: Youth Look Brown Sugar Ginger Red Jujube Plant Drink, China
- Introduce liquor flavour to soft drinks
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- Figure 21: Product examples of carbonated soft drinks with liquor flavour, China, 2019-20
The Consumer – What You Need to Know
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- Consumption shift to nutritious and healthy categories
- Blurring is a meaningful way to respond to multi-roles of non-alcoholic drinks in consumers’ life
- Visualisation of ‘minus’ information is as important as fortifying nutrition
Consumption Frequency
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- Dairy drinks have an essential role in consumers’ daily diet
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- Figure 22: Consumption frequency, November 2020
- Role in vitamin supplement helps juice receive more frequent drinkers
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- Figure 23: Consumption frequency – more than once a week, 2018-20
- Sports and energy drinks benefit from association with physical activities
- Healthy options help sparkling water catch up with carbonated soft drinks
Consumption Purpose
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- Diversified purpose unveils blurring opportunity
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- Figure 24: Repertoire analysis of consumption purpose, November 2020
- Nutritional supplement comes as a close second to thirst quenching
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- Figure 25: Consumption purpose, November 2020
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- Figure 26: Consumption purpose – Select items, by monthly personal income and family structure, November 2020
- Opportunities for drinks to satisfy a craving
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- Figure 27: Consumption purpose – select items, 2018-20
Desired Attributes
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- Fortified vitamins would attract most attention
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- Figure 28: Desired attributes, November 2020
- Visualise ‘minus’ information to reach a wider audience
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- Figure 29: Desired attributes – TURF analysis, November 2020
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- Figure 30: HeyTea Bottle Sea Salt Grapefruit Flavour Sugar-Free Sparkling Water, China, 2021
- Females care more about removal of negatives while males pay attention to minerals
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- Figure 31: Desired attributes, by gender, November 2020
Ingredient Perception
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- Probiotics, cereal/grains and flowers provide solutions to the health-taste dilemma
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- Figure 32: Ingredient perception, November 2020
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- Figure 33: Ingredient perception – Healthy x tasty ranking, November 2020
- Figure 34: Youth Look Flower Extract Series, China
- Ingredients from foodservice can enrich taste
Purchase Trigger
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- Product plays a bigger role than marketing
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- Figure 35: Purchase triggers for blurred beverage, November 2020
- Focus on the touchpoint of nutrition can further encourage purchase
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- Figure 36: Purchase triggers for blurred beverage – TURF analysis, November 2020
- Use seasonal ingredients to attract females and high earners
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- Figure 37: Purchase triggers for blurred beverage, by monthly personal income, November 2020
Blurring Preference
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- Juice and dairy drinks are good entry points
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- Figure 38: Blurring preference, November 2020
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- Figure 39: Blurring preference – Top 10 combinations, November 2020
- Figure 40: Blurring preference – Top three choices for each option, November 2020
- Pay attention to the self-indulgence demand from consumers who live alone
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- Figure 41: Blurring preference, by living situation, November 2020
Appendix – Market Size and Segmentation
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- Figure 42: Consumer expenditure on non-alcoholic drinks*, by segmentation, China, 2016-20
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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