Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Excluded
Executive Summary
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- The market
- Growth rate has slowed since 2014 and may remain stable
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- Figure 1: Volume sales forecast of on-trade soft drinks in China, 2010-20
- RTD tea and bottled water are the dominant categories
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- Figure 2: Segment share of on-trade soft drinks in China, by volume, 2010-20
- Companies and brands
- Premium bottled water bubbles up in high-end restaurants
- Use slogans and limited festive edition to increase brand awareness
- Customise my drink – Coca-Cola Freestyle
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- Figure 3: Coke Freestyle, USA 2016
- The consumer
- Milk is rarely consumed but sees opportunities
- Fast food restaurants enjoy the highest soft-drink consumption
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- Figure 4: Usage frequency in different on-trade channels, January 2016
- Hot pot restaurants the channel to watch
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- Figure 5: Order frequency of different soft drinks in hot pot and fast food restaurants, January 2016
- Light and thirst-quenching drinks are more ideal
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- Figure 6: Purpose of ordering soft drinks in on-trade channels, January 2016
- Rely on brand
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- Figure 7: Purchase factor of on-trade soft drinks, January 2016
- Summer is the peak season
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- Figure 8: General attitudes towards on-trade soft drinks, January 2016
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- Figure 9: General attitudes towards on-trade soft drinks, January 2016
- Consumers in the north drink more than those in the south
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- Figure 10: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and region, January 2016
- Mintropolitans are sophisticated in food pairing and nutrient balancing
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- Figure 11: Highlighted purpose of ordering on-trade soft drinks, by consumer classification, January 2016
- What we think
Issues and Insights
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- Educate consumers on the concept of food pairing
- The facts
- The implications
- Link with emotions
- The facts
- The implications
- Tapping into flavoured water and fermented drinks
- The facts
- The implications
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- Figure 12: Percentage of flavoured water among total new-launched bottled water products in China, by year, 2012-15
- Figure 13: Product example of flavoured water targeting female consumers, Japan and France 2014-15
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- Figure 14: Product example of fermented soft drinks. China, New Zealand, and Italy 2014-16
The Market – What You Need to Know
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- Growth rate slowed down since 2014 and may remain stable
- Packaged products losing out to freshly-made drinks
- RTD tea and bottled water are the dominant categories
Market Size and Forecast
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- Growth rate slowed down since 2014…
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- Figure 15: volume sale and annual growth rate of on-trade soft drinks in China, 2010-20
- …and may remain stable in the next 3-5 years
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- Figure 16: Volume sale forecast of on-trade soft drinks in China, 2010-20
Market Drivers
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- Consumers’ frequent restaurant visiting and soft drink consumption
- Consumers are spending less on alcoholic drinks
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- Figure 17: Chinese consumers’ changes in the amount spent in alcoholic and non-alcoholic drinks, Jan 2016
Market Barriers
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- Packaged losing out to freshly made
- Lack of breakthrough innovation after herbal tea
Market Segmentation
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- RTD tea and bottled water are the dominant categories
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- Figure 18: Segment share of on-trade soft drinks in China, by volume, 2010-20
- Herbal tea drives the RTD tea segment growth
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- Figure 19: Sales of on-trade RTD tea, by volume 2010-15
- Bottled water surpassing RTD tea segment
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- Figure 20: Sales of on-trade bottled water, by volume, 2010-15
- Packed juice market threatened by freshly-made juice
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- Figure 21: Sales of on-trade packaged juice, by volume, 2010-15
- Figure 22: Product example of dessert-like packaged juice, China 2012
- CSD market more stable in on-trade than in retail
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- Figure 23: Sales of on-trade CSDs, by volume, 2010-15
- PPD and fermented drinks are potential stars
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- Figure 24: Sales of on-trade PPD, by volume, 2010-15
- Figure 25: Product example of lactobacillus drink with reduced sugar level, China 2016
Key Players – What You Need to Know
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- Premium bottled water bubbles up in high-end restaurants
- Customise my drink
- Premium juice
Competitive Strategies
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- Premium bottled water bubbles up in high-end restaurants
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- Figure 26: Voss premium bottled water, Norway 2010
- Brief and catching slogans
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- Figure 27: Example product with restaurant-targeting slogan, China 2014-16
- Limited festive editions
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- Figure 28: Product example of festive limited editions. China and Singapore 2016
Who’s Innovating?
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- Customise my drink
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- Figure 29: Coke Freestyle, USA 2016
- Resealable can
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- Figure 30: Product example of resealable can. UK 2015.
- ‘Mocktail’
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- Figure 31: Product example of ‘mocktail’, USA and Italy 2016
- Premium juice
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- Figure 32: Example of coconut water for kids
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- Figure 33: Product example of packaged juice blended with super fruits or exotic fruits, Brazil and UK 2013 and 2016
The Consumer – What You Need to Know
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- Rely on brand
- Fast food restaurants enjoy the highest soft-drink consumption
- Higher threshold price
- Regional dining habits affect consumers’ drinking purposes
The Consumer - Comparison of Retail and On-trade Channels
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- CSD is well-liked in on-trade channels
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- Figure 34: Soft drink consumption from retail channels, by category, January 2016
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- Figure 35: Top three most commonly ordered soft drinks, by channel, January 2016
- Milk is rarely consumed but has opportunity
The Consumer - Usage Frequency
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- Fast food restaurants enjoy the highest soft-drink consumption
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- Figure 36: Usage frequency in different on-trade channels, January 2016
- Female consumers order more often than the males
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- Figure 37: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and gender, January 2016
- Consumers aged 40 and above order less than the young
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- Figure 38: Percentage of consumers who have not ordered any on-trade drinks, by channel and age group, January 2016
The Consumer - Usage by location
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- Diverse beverage preference in hot pot restaurants
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- Figure 39: Order frequency of different soft drinks in hot pot and fast food restaurants, January 2016
- CSDs are rarely ordered in full-service restaurants
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- Figure 40: Order frequency of CSDs, by channel, January 2016
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- Figure 41: Product example of premium CSD
- Packaged and freshly made juice each own their stage
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- Figure 42: Order frequency of packaged juice and freshly made juice/smoothie, by channel, January 2016
- Speciality drinks and hot beverages are popular in full-service restaurants
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- Figure 43: Usage of freshly made juice/smoothie, special blend from the store, and hot beverages by channel, January 2016
The Consumer - Usage Purpose
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- Light and thirst-quenching drinks are more ideal
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- Figure 44: Purpose of ordering soft drinks in on-trade channels
- Young consumers drink for physiological purposes; old consumers value the health benefits
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- Figure 45: Purposes of ordering on-trade soft drinks, by age group, January 2016
- Need further education on health benefits
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- Figure 46: Purpose of ordering on-trade soft drinks, by education level and income, January 2016
The Consumer – Purchase Factors
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- Rely on brand
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- Figure 47: Purchase factors for on-trade soft drinks, January 2016
- Building new habits
- Men are loyal to brand; women are adventurous tasters
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- Figure 48: Purchase factor by gender, January 2016
The Consumer - General Attitudes towards On-trade Soft Drinks
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- Summer is the peak season
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- Figure 49: General attitudes towards on-trade soft drinks, January 2016
- No strong preference between restaurant-made and packaged drinks
- Higher threshold price
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- Figure 50: General attitudes towards on-trade soft drinks
- Consumers in their 30s are more interested in children’s drinks
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- Figure 51: Percentage of consumers who would like to see more children’s drinks in on-trade channels, by age group, January 2016
The Consumer – Region and City Tier Comparison
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- Consumers in the north drink more than the south
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- Figure 52: Percentage of consumers who always order soft drinks in the on-trade channels, by channel and region, January 2016
- Regional dining habits affect consumers’ drinking purposes
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- Figure 53: Purpose of ordering on-trade soft drinks, by region, January 2016
- Packaged juice and PPD more popular in tier two and three cities
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- Figure 54: Usage of packaged juice and PPD in different surveyed channels, by city tier, January 2016
The Consumer - Meet the Mintropolitans
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- More likely to order soft drinks
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- Figure 55: Percentage of consumers who always order on-trade soft drinks in selected channels, by consumer classification, January 2016
- Sophisticated in food pairing
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- Figure 56: Highlighted purpose of ordering on-trade soft drinks, by consumer classification, January 2016
- Aware of products’ nutritional value
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- Figure 57: Highlighted purchase factor of on-trade soft drinks, by consumer classification, January 2016
Appendix – Market Segmentation
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- Figure 58: Volume sales of on-trade RTD tea in China, 2010-20
- Figure 59: Volume sales of on-trade packaged juice in China, 2010-20
- Figure 60: Volume sales of on-trade CSDs in China, 2010-20
- Figure 61: Volume sales on-trade bottled water in China, 2010-20
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- Figure 62: Volume sales of on-trade the others* drinks in China, 2010-20
- Figure 63: Volume forecast of on-trade soft drinks in China, by segment, 2010-20
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Mintropolitans
- Why Mintropolitans?
- Who are they?
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- Figure 64: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
- Figure 65: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
- Abbreviations
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