Consumer Attitudes towards Functional Drinks - China - April 2017

OVERVIEW
What you need to know
Covered in this report
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
Sports and energy drink market intensifies in China
Companies and brands
Monster enters China; Red Bull faces uncertainty
‘No Additives/Preservatives’ claim has increased the most
Figure 2: Top 10 claims on sports drinks*, China 2014-16
Room to diversify flavour
Figure 3: Top 10 flavours of sports drinks, China 2014-16
The consumer
Gaining energy is the most popular need
Figure 4: Health benefits in drinks that consumers are interested in buying, January 2017
Sports drinks enjoy the heaviest consumption
Figure 5: Consumption frequency of different functional drinks, January 2017
Mizone outperforms Gatorade as a sports drink
Figure 6: Correspondence Analysis – Perception of different types of drinks in the market, January 2016
Looking for energy drinks designed for women
Figure 7: Consumers’ usage and attitudes towards functional drinks, January 2017
Concern about caffeine but not taurine
Figure 8: Consumers' attitudes towards the functional ingredients, January 2017.
Consumers want low-calorie energy drinks without artificial sweeteners
Figure 9: Energy drink innovations consumers are interested in, January 2017
Mintropolitans want cleaner functional drinks
Figure 10: Highlighted consumers’ usage and attitudes towards energy drinks, January 2017
What we think
ISSUES AND INSIGHTS
Energy drinks for different levels
The facts
The implications
Sophisticated fermented drinks
The facts
The implications
Figure 11: Kombucha product example, China, Taiwan, and US, 2016-17
Figure 12: Product example of probiotic drinks from Meiji, Japan, 2015-16
Figure 13: Product example of Farmhouse Culture chips, US 2016
Use plant-based ingredient to clean up the category
The facts
The implications
Figure 14: Berri Pro’s fitness beverage, US 2016
Figure 15: Mr. Mak’s original dynasty ginbao, US 2016
THE MARKET – WHAT YOU NEED TO KNOW
Competition in the sports and energy drink market intensifies
Global beverage brands invest in probiotic drinks
Consumers’ growing demands and higher standards
OPPORTUNITIES AND CHALLENGES
Competition in sports and energy drinks intensifies
Global beverage brands invest in probiotic drinks
Figure 16: Product example of fermented drink products, US 2016-17
Consumers’ growing demands and higher standards
The potentially stricter regulation on functional drinks
KEY PLAYERS – WHAT YOU NEED TO KNOW
Monster enters China; Red Bull faces uncertainty
More clean sports drinks
Room to diversify flavours
COMPETITIVE STRATEGIES
Mizone launches taurine-infused drinks
Figure 17: Mizone’s Mi Pro, China 2017
Monster enters China
Figure 18: Product example of Monster Beverages’ innovation in the global market, China, US and Turkey 2015-17
Red Bull’s uncertainty in China
Uni-President Food sells off Jianlibao
WHO’S INNOVATING?
More clean and on-the-go sports drinks
Figure 19: Top 10 claims on sports drinks*, China 2014-16
Figure 20: Product example of sports drinks featuring plant-based ingredients, China 2016-17
Figure 21: Product example of sports drinks designed for on-the-go, China and US 2016
Room to diversify the flavour
Figure 22: Top 10 flavours of sports drinks, China 2014-16
Figure 23: Top 10 flavours of energy drinks*, China 2014-16
Figure 24: Product example of acai-flavoured energy drinks
Leading sports drink brands becoming organic
Figure 25: Product example of organic sports drinks. US 2016-17
Functional CSD (Carbonated Soft Drinks)
Figure 26: Coca-Cola Plus and Monster’s Mutant, Japan and US 2016
Red Bull’s VR pack
Figure 27: Red Bull’s VR package, Brazil 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
Gaining energy is the most popular need
Looking for energy drinks designed for women
Concern about caffeine but not taurine
INTERESTED HEALTH BENEFITS
Gaining energy is the most popular need
Figure 28: Health benefits in drinks that consumers are interested in buying, January 2017
Consumers aged 25-39 have greater interest in stress relief
Figure 29: Product example of stress relief drink, US 2016
Younger consumers have need for vision-aiding functions
Most consumers do not buy into the anti-haze claim
Figure 30: Jin Sang Zi foods’ herbal tea, China 2016
Males have more diverse range of needs; females focus on beauty
Figure 31: Health benefits in drinks that consumers are interested in buying, by gender, January 2017
CONSUMPTION FREQUENCY
Sports drinks enjoy the heaviest consumption
Figure 32: Consumption frequency of different functional drinks, January 2017
Figure 33: Product example of functional drinks in a more portable format
Functional RTD tea has good potential to grow
Figure 34: Product example of functional tea, US, Singapore, and Japan 2016-17
Vitamin water see opportunity among female consumers
Figure 35: Product example of flavoured water with probiotics in China, 2016-17
Room to increase penetration of enzyme drinks and vinegar drinks
Figure 36: Product example of enzyme drinks in China, 2016-17
PERCEPTION OF DIFFERENT TYPES OF DRINKS
Mizone outperforms Gatorade as a sports drink
Figure 37: Correspondence Analysis – Perception of different types of drinks in the market, January 2016
Figure 38: Attributes associated with different types of drinks in the market, January 2017
Few are aware of Red Bull’s high vitamin content
Vitamin Water can be more ‘natural’; Hai Zhi Yan can improve its taste
Coconut water has not yet entered the exercise occasion
USAGE AND ATTITUDES
Looking for energy drinks designed for women
Figure 39: Consumers’ usage and attitudes towards energy drinks, January 2017
Figure 40: Product example of tea/coffee-infused energy drinks, US, 2016
Heavy users drink sports drinks even when not exercising
Figure 41: Consumers’ usage and attitudes towards sports drinks, January 2017
Sophisticated users want to know more about the ingredients
Figure 42: Consumers’ usage and attitudes towards functional drinks, January 2017
ATTITUDES TOWARDS FUNCTIONAL INGREDIENTS
Concern about caffeine but not taurine
Figure 43: Consumers' attitudes towards the functional ingredients, January 2017.
Open to plant-based energy ingredients
Figure 44: Product example of energy drinks featuring plant-based active ingredients, China, UK, US
Explaining ingredient functions can make them more welcomed
Figure 45: Baby’s face and body cream from Pai Skincare, UK 2016
INTERESTED IN ENERGY DRINK INNOVATIONS
Consumers want low-calorie energy drinks without artificial sweeteners
Figure 46: Energy drink innovations consumers are interested in, January 2017
Figure 47: Product example of energy drinks that use natural sweeteners other than sugar. US 2016-17
Figure 48: Product examples of energy drinks with fruit juice, US 2011-16
Organic energy drinks may be a missing opportunity in China
Figure 49: Percentage of organic energy drinks, Global 2014-16
Male consumers like TCM-based energy
Figure 50: Highlighted energy drink innovations consumers are interested in, by gender, January 2017
MEET THE MINTROPOLITANS
Greater consumption of functional drinks
Figure 51: Heavy users* of different functional drinks, by consumers classification, January 2017
Demand for cleaner functional drinks
Figure 52: Selected consumers’ usage and attitudes towards energy drinks, by consumer classification, January 2017
Higher interest in various ingredients
Figure 53: Consumers who would like to see the following ingredients in their drinks, by consumers classification, January 2017
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations