Table of Contents
Introduction
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- In this report we answer the key questions:
- Definition
- Abbreviations
Executive Summary
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- The market
- The future
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- 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
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- 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
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- Figure 4: Correspondence map of qualities associated with selected types of tea drinks, November 2013
- Retail channels dominate RTD tea purchases
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- Figure 5: Tea drink purchasing channels, November 2013
- Health and safety remain major issues for consumers
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- Figure 6: Important choice factors when buying tea drinks, November 2013
- Polarised views on flavours
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- Figure 7: Attitudes towards the flavour of tea drinks, November 2013
- Premium RTD tea shows potential
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- Figure 8: General attitudes towards premium RTD tea drinks, November 2013
- What we think
Issues in the Market
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- How can brands drive standout in the increasingly crowded plain flavour tea drink segment?
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- 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?
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- Figure 10: Attitudes towards tea drinks, November 2013
- Should tea drinks only be served cold in summer and warm in winter?
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- Figure 11: Selected attitudes towards tea drinks, November 2013
- How can brands reach women more effectively?
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- Figure 12: Tea drinks had in the past six months, by gender, November 2013
Trend Application
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- Trend: Mood to Order
- Trend: Influentials
- Mintel futures: Brand Intervention
Market Drivers
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- Key points
- Urbanisation creates a larger consumer base with greater spending power
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- Figure 13: Disposable income of urban residents and urban population in China, 2000-11
- Healthy lifestyles gain popularity
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- 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
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- Figure 15: Global wholesale sugar monthly price, 2009-13
Who’s Innovating?
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- Key points
- New packaging becomes increasingly popular in NPD
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- Figure 16: New product launches by launch type in the China RTD tea drink market, 2011-13
- No additives/preservatives remains the leading claim
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- Figure 17: New product launches by top 10 claims in the China RTD tea drink market, 2011-13
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- Figure 18: The Original Da hHong Pao by Bo Da Jian, Q2 2013
- New flavours and unflavoured tea drinks gain share in launches
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- 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
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- Key points
- Sales by segment
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- 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
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- 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
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- 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
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- Tingyi Holdings Corporation
- Uni-president China Holding Ltd
- Hangzhou Wahaha Group
- JDB Group
The Consumer – Usage of Tea Drinks
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- Key points
- Bottled water is taking the lead
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- Figure 25: Tea drinks and other packaged drinks drunk in past 6 months, November 2013
- Lack of tea drinks suitable for female consumers
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- Figure 26: Weekly usage of tea drinks, by type, by gender, November 2013
- Older consumers show heavier usage of Jasmine tea and herbal tea
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- 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
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- 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
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- Key points
- Qualities associated with different types of tea drinks
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- Figure 29: Correspondence map of qualities associated with selected types of tea drinks, November 2013
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- 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
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- Figure: Qualities associated with different types of tea drinks by gender, November 2013
- Methodology
The Consumer – Tea Drink Purchasing Channels
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- Key points
- Retail channels dominate RTD tea purchases
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- Figure 31: Tea drink purchasing channels, November 2013
- Grocery stores reach young men more effectively than other channels
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- Figure 32: Purchase of RTD tea drink from grocery stores, by age and gender, November 2013
- Hypermarkets suitable for premium products
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- Figure 33: Purchases of RTD tea drinks from hypermarkets, by gender, monthly personal income and city tier, November 2013
- Cafés enjoy a premium image
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- Figure 34: Purchases of RTD tea drinks from café, by demographics, November 2013
The Consumer – Important Choice Factors
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- Key points
- Health and safety remain major issues for consumers
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- 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
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- Figure 36: Oolong tea from Shiyi, Q1 2013
- Consumers from tier one cities shows greater interest in low sugar and low calorie tea drinks
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- 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
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- Figure 38: Authentic taste as the most important factor, by usage of traditional Chinese tea, November 2013
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- Figure 39: Ayataka from Coca-Cola Japan, March 2012
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- Figure 40: The Original Da Hong Pao by Bo Da Jian, Q2 2013
The Consumer – Attitudes towards Positioning
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- Key points
- Polarised views on flavours
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- 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
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- 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
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- Figure 43: Selected attitudes towards RTD tea drinks, by age, November 2013
- Tonic herbal tea faces barriers in northern China
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- 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
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- Key points
- Premium RTD tea shows potential
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- Figure 45: General attitudes towards premium RTD tea drinks, November 2013
- Women show greater interest than men in premium RTD tea drinks
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- 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
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- Figure 47: General attitudes towards brands in RTD tea drinks, November 2013
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- Figure 48: Tenwow’s Sumiyaki milk tea launched in Q3 2013
- High earners and consumers in smaller cities show greater brand loyalty
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- 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
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- Key points
- Five groups identified
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- Figure 50: Cluster analysis, November 2013
- Price sensitive
- Who are they?
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- Figure 51: Price sensitive, by selected demographics, November 2013
- What do they think?
- Marketing implications
- Xiaozi
- Who are they?
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- Figure 52: Xiaozi, by selected demographics, November 2013
- What do they think?
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- 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?
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- Figure 54: Disengaged, by selected demographics, November 2013
- What do they think?
- Marketing implications
- Loyal premium lovers
- Who are they?
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- Figure 55: Loyal premium lovers, by selected demographics, November 2013
- What do they think?
- What types of tea drinks do they drink?
- Marketing implications
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- Figure 56: Heyseng’s marketing campaign in 2013
- Brand churners
- Who are they?
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- 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
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- Figure 58: Tea drinks had in past 6 months, November 2013
- Figure 59: Tea drinks had in past 6 months, November 2013
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- Figure 84: Tea drinks had in past 6 months, by other tea drink purchasing channels, November 2013
- Repertoire anaylsis
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- Figure 85: Repertoire of all soft drinks, November 2013
- Figure 86: Repertoire of all soft drinks, by demographics, November 2013
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- Figure 87: Repertoire of ready-to-drink tea drinks, November 2013
- Figure 88: Repertoire of ready-to-drink tea drinks, by demographics, November 2013
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- Figure 89: Repertoire of all soft drinks, by target groups, November 2013
- Figure 90: Repertoire of tea drink purchasing channels, November 2013
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- 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
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Appendix – Attitudes towards Different Types of Tea Drinks
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- Figure 105: Attitudes toward different types of tea drinks – None of the above, by demographics, November 2013
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Appendix – Tea Drink Purchasing Channels
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- Figure 106: Tea drink purchasing channels, November 2013
- Figure 107: Most popular tea drink purchasing channels, by demographics, November 2013
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- Figure 108: Next most popular tea drink purchasing channels, by demographics, November 2013
- Figure 109: Other tea drink purchasing channels, by demographics, November 2013
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Appendix – Important Consideration Factors When Buying Tea Drinks
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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Appendix – Attitudes towards Flavour of Tea Drinks
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- 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
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- 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
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Appendix – General Attitude towards Tea Drinks
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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Appendix – Further Analysis
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- 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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