Plant Protein Drinks - China - January 2016

OVERVIEW
What you need to know
Products/ themes covered in this report
EXECUTIVE SUMMARY
The market
Figure 1: Best-and worst-case forecast of China retail value sales of PPDs, by value, 2010-20
Figure 2: Best-and worst-case forecast of sales of PPDs in China, by volume, 2010-20
Companies and brands
Figure 3: Market share of PPD market in China, 2013-14
The consumer
PPDs have high penetration and still room to grow
Figure 4: Penetration of PPDs, October 2015
Figure 5: Percentage of consumers drinking more PPDs than six months ago, by region and sub-category, October 2015
Walnut and coconut PPDs are on the rise
Figure 6: Trends in PPD consumption, October 2015
Expanding usage occasions beyond just breakfast
Figure 7: PPD consumption occasions, October 2015
Purchase channels similar to 2013
Figure 8: Purchase channel frequency of PPDs, October 2015
Majority of consumers buy PPDs for self-use rather than gifting
Figure 9: Usage purpose of PPDs, October 2015
International brands own the image of better quality but more consumers prefer domestic brands
Figure 10: Consumer attitudes towards international and domestic PPD brands, October 2015
Consumers are looking for value-added PPDs
Figure 11: Consumer attitudes towards PPDs, October 2015
Mintropolitans drink PPDs before or after exercising and consider drinking PPDs fashionable
Figure 12: Percentage of consumers who think drinking PPDs is fashionable, by consumer classification, China 2015
What we think
ISSUES AND INSIGHTS
Prove the goodness of the ingredients to differentiate from the majority
The facts
The implications
Positioning PPDs towards the rising unconventional usage occasions
The facts
The implications
Strategies for classic PPD brands to respond to new entrants
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
PPD market growing steadily
Big players entering the PPD category
National standard for walnut-based and almond-based PPDs effective from December 2015
MARKET SIZE AND FORECAST
Growing steadily
Figure 13: Value and volume sales for PPDs in China, 2010-20
Figure 14: Best-and worst-case forecast of China retail value sales of PPDs, by value, 2010-20
Figure 15: Best-and worst-case forecast of sales of PPDs in China, by volume, 2010-20
MARKET DRIVERS
Big players entering the PPD category
Figure 16: Examples of PPD products from major Chinese food and drink manufacturers. 2014-15
National standard for walnut-based and almond-based PPDs effective December 2015
Milk market growth slows down and milk retail prices rise
Figure 17: Retail value sales of China’s milk and flavoured milk market, 2009-19
KEY PLAYERS – WHAT YOU NEED TO KNOW
Walnut gaining steam while soy losing the leading position
Rising competition from new PPD manufacturers, especially coconut
Filling in the premium gap
MARKET SHARE
Walnut-based PPD manufacturers gaining market share
Figure 18: Company share of PPD market in China, 2013-2014
Rising competition from new PPD manufacturers, especially in coconut
Figure 19: Example of coconut-based PPD from emerging manufacturer
Walnut gaining steam while soy losing the leading position
Figure 20: Market segmentation of PPDs in China, by value, 2010-14
COMPETITIVE STRATEGIES
Mengniu allies with US largest PPD manufacturer
Figure 21: Example of WhiteWave’s plant protein based food products
Filling in the premium gap
Figure 22: Product example of premium PPD
Diversify the product portfolio
Figure 23: Product examples of PPDs from manufacturers focusing on other sub-categories
WHO’S INNOVATING?
Ancient grain based PPDs are an undeveloped market in China
Figure 24: PPDs containing ancient grains, Global, 2013-15
Figure 25: Product examples of PPDs with ancient grains
Claims: No additives/preservatives still at the top, social media increasing sharply
Figure 26: Top 10 claims used in PPD new product launches, China, 2013-15
Figure 27: Product example of PPD with social media claim
Unconventional PPDs
Figure 28: Product example of PPDs with added fruit juice, China 2015
PPDs designed for different seasons
Figure 29: Product examples of PPDs designed for different seasons
THE CONSUMER – WHAT YOU NEED TO KNOW
Walnut and coconut are the most popular sub-categories
Breakfast time is no longer the most common consumption occasion
International brands own the image of better quality but more consumers prefer domestic brands
Majority of consumers buy PPDs for self-use rather than gifting
Consumers are looking for value-added PPDs
PENETRATION OF PLANT PROTEIN DRINKS
High penetration and still rooms to grow
Figure 30: Penetration of PPDs, October 2015
Consumers in their 20s are more likely to buy PPDs
Figure 31: Usage of PPDs, by age, October 2015
Figure 32: Product example of PPD with trendy package design and claimed benefits for the brain
Lower penetration in West region
Figure 33: Usage of PPDs, by city tier and region, October 2015
Figure 34: Percentage of consumers drinking more PPDs than six months ago, by region and sub-category, October 2015
TRENDS IN PLANT PROTEIN DRINKS CONSUMPTION
Walnut and coconut are on the rise
Figure 35: Trends in PPD consumption, October 2015
Consumers with children in household consume more walnut drinks
Figure 36: Consumers who have drunk more walnut drinks in past six months, by selected demographics, October 2015
Figure 37: Product examples of walnut drinks targeting children. China 2014
Coconut drinks are especially popular in tier one cities
Figure 38: Consumers who have drunk more coconut drinks, by selected demographics, October 2015
Soy drinks skew towards female and young consumers
Figure 39: Consumers who have drunk more soy drinks in past six months, by selected demographics, October 2015
CONSUMPTION OCCASIONS
Key trends vs 2013
Figure 40: PPD consumption occasions, October 2015
Soy-based is no longer the go-to PPD for breakfast
Figure 41: Product example of PPD featuring usage of breakfast
PURCHASE CHANNELS OF PLANT PROTEIN DRINKS
Channels have not changed much since 2013
Figure 42: Purchase channel frequency of PPDs, October 2015
Consumers in their 20s shop more at small stores and vending machines
Figure 43: Selected PPD purchase channels, by age group, October 2015
PPD lovers buy PPDs online and in cafés
PURCHASE BEHAVIOUR FOR PLANT PROTEIN DRINKS
The majority of consumers buy PPDs for self-use rather than gifting
Figure 44: Usage purpose of PPDs, October 2015
People prefer buying in-store to online
Figure 45: Selected consumers’ purchase preferences for PPDs, October 2015
Variety means different sub-categories, not different flavours
Figure 46: Selected consumers’ purchase preferences for PPDs, October 2015
ATTITUDES TOWARDS INTERNATIONAL AND DOMESTIC BRANDS
International brands own the image of better quality...
Figure 47: Consumer attitudes towards international and domestic PPD brands, October 2015
...but consumers still prefer domestic brands
Figure 48: Consumers’ preferences for international and domestic PPD brands, October 2015
Figure 49: Consumers’ attitudes towards international and domestic PPD brands, October 2015
GENERAL ATTITUDES TOWARDS PLANT PROTEIN DRINKS
Consumers are looking for value-added PPDs
Figure 50: Consumer attitudes towards plant protein drinks, October 2015
Figure 51: Product examples of PPDs targeting kids, made with mixed plant protein ingredients. China, 2014-15
Figure 52: Product Example of PPD with beauty benefits. Taiwan, 2015
Room for new products with no/low added sugar
Figure 53: Percentage of newly launched PPD products with “unsweetened”, “low-sugar”, or ”no-sugar” claim, China and global, 2013-2015
MEET THE MINTROPOLITANS
Strong interest in walnut-based and coconut-based drinks
Figure 54: Percentage of consumers drinking more PPDs than six months ago, by consumer classification, October 2015
Drink PPDs before or after exercising
Figure 55: Highlighted PPD consumption occasions, by consumer classification, October 2015
Figure 56: Product example of PPD designed for post-workout use
Consider drinking PPDs as fashionable
Figure 57: Selected consumer attitudes towards plant protein drinks, by consumer classification, October 2015
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Mintropolitans
Why Mintropolitans?
Who are they?
Figure 58: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 59: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Abbreviations