Sports and Energy Drinks - China - July 2016

OVERVIEW
What you need to know
Products/themes covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Retail value sales of sports drinks in China, 2016-21
Figure 2: Retail volume sales of sports drinks in China, 2016-21
Figure 3: Retail value sales of energy drinks in China, 2016-21
Figure 4: Retail volume sales of energy drinks in China, 2016-21
Key players
Figure 5: Sports drink market share, by value, China, 2015
Figure 6: Sports drink market share, by volume, China, 2015
Figure 7: Energy drink market share, by value, China, 2015
Figure 8: Energy drink market share, by volume, China, 2015
The consumer
Medium users are on the rise
Figure 9: Changes in frequency of drinking sports and energy drinks, April 2014 and April 2016
Functional scepticism is the fundamental usage barrier
Figure 10: Barriers to usage of sports and energy drinks, April 2016
Age is a key influence on retail purchase channels
Figure 11: Purchase channels, by age, April 2016
Tier one city residents prefer exclusive online offers
Figure 12: Consumer attitudes, by city tier, April 2016
What we think
ISSUES AND INSIGHTS
How to maintain medium users while targeting light users
The facts
The implications
How category blurring will benefit sports and energy drinks
The facts
The implications
How to diversify purchase and drinking occasions to target younger consumers
The facts
The implications
Figure 13: Michel Adam F-88 Mix Fruit Carbonated Drink, Austria, September 2015; Monster Bebida Enegética Carbonatada con Taurina (Ultra Sunrise Energy Drink), Spain, June 2016; Red Bull The Summer Edition Energy Drink Kiwi-Apfel (The Summer Edition Kiwi & Apple Energy Drink) Austria, May 2016
THE MARKET – WHAT YOU NEED TO KNOW
A robust current market and a strongly growing future market
Health-conscious lifestyles and category blurring trends as motivations
MARKET SIZE AND FORECAST
Figure 14: Retail value sales of sports drinks in China, 2016-21
Figure 15: Retail volume sales of sports drinks in China, 2016-21
Figure 16: Value and volume retail sales for sports drinks in China, 2011-21
Figure 17: Retail value sales of energy drinks in China, 2016-21
Figure 18: Retail volume sales of energy drinks in China, 2016-21
Figure 19: Value and volume retail sales for energy drinks in China, 2011-21
MARKET DRIVERS
Added benefits are getting popular
Figure 20: Sui Yue Hai Yan Qi Yi Guo Wei Wei Sheng Su Guo Wei Yin Liao (Sea Salt Kiwi Flavoured Drink with Vitamin), China, June 2016; Bai Wei Li Qiang Hua Wei Sheng Su Yin Pin (Enhanced Vitamin Energy Drink), China, February 2016
Category blurring
Figure 21: CPT Ye Xing Jia Ping Guo Wei Guo Zhi Xing Ke Xi Guo Dong (Apple Flavoured Drinkable Fruit Juice Jelly), China, December 2015
Sports and exercise drive consumption
Figure 22: Wahaha G-Vital Shui Mi Tao Kou Wei Wei Sheng Su Yin Liao (Peach Flavoured Vitamin Drink), China, December 2015; Wahaha G-Vital Gan Ju Kou Wei Wei Sheng Su Yin Pin (Orange Flavoured Vitamin Drink), China, September 2015; Wahaha G-Vital Ning Meng Kou Wei Wei Sheng Su Yin Pin (Lemon Flavoured Vitamin Drink), China, September 2015
KEY PLAYERS – WHAT YOU NEED TO KNOW
Mizone and Red Bull are the market leaders
Rising functional innovations and social media positioning claims
Sports and energy tablets and powder are under-represented
MARKET SHARE
Mizone dominates the sports drink market
Figure 23: Mizone Bo Luo Kou Wei Wei Sheng Su Yin Liao (Pineapple Flavoured Vitamin Drink), June 2016; Mizone Qing Ning Kou Wei Wei Sheng Su Yin Liao (Lime Flavoured Vitamin Drink), China, May 2016; Mizone Sui Yue Hai Yan Qi Yi Guo Kou Wei Wei Sheng Su Guo Wei Yin Liao (Sea Salt and Kiwi Flavoured Vitamin Drink), China, July 2015
Red Bull dominates the energy drink market
Figure 24: Red Bull Wei Sheung Su Gong Neng Yin Liu (Vitamin Functional Drink), China, September 2015; Red Bull Wei Sheng Su Gong Neng Yin Liao (Vitamin Energy Drink), China, November 2013
Figure 25: Sports drink market share, by value and volume 2014-15
Figure 26: Energy drink market share, by value and volume 2014-15
WHO’S INNOVATING?
Figure 27: Product claim trends of sports and energy drinks in China, 2014-16
Products with social media claims and functional ingredients
Figure 28: Wahaha G-Vital Pai Hai Yan Xi You Wei Sheng Su Feng Wei Yin Pin (Sea Salt and Grapefruit Flavoured Vitamin Drink), China, April 2016; Wahaha G-Vital Pai Mo Ji Tuo Wei Wei Sheng Su Feng Wei Yin (Mojito Flavoured Vitamin Drink), China, April 2016
Functional benefits in beauty, brain and nervous system
Figure 29: MasterKong Shui Yang Xi You Kou Wei Wei Sheng Su Yin Liao (Grapefruit Flavoured Vitamin Drink), China, January 2016; MasterKong Shui Yang Ning Meng Kou Wei Wei Sheng Su Yin Liao (Lemon Flavoured Vitamin Drink), China, January 2016; MasterKong Shui Yang Shui Mi Tao Kou Wei Wei Sheng Su Yin Liao (Peach Flavoured Vitamin Drink), China, January 2016 
Category blurring – Coconut water carbonated sports drink
Figure 30: Kang Zhi Wei Yandian Ye Zi Shui Han Qi Yun Dong Yin Liao (Coconut Water Carbonated Sports Drink), China, Aurugt 2015; Kang Zhi Wei Yandian Ye Zi Shui Han Qi Yun Dong Yin Liao (Coconut Water Carbonated Sports Drink), China, August 2015
Products with other functional benefits – Tablets and powder
Figure 31: Kumai Hun He Guo Wei Yun Dong Xing Pao Teng Pian (Mix Fruit Flavoured Movement Type Effervescent Tablets), China, April 2016; and Kumai Yun Dong Xing Pao Teng Pian (Movement Type Effervescent Tablets), China, April 2016; By-Health GymMax Keyplus Ning Meng Wei Yun Dong Gu Ti Yin Liao (Lemon Flavoured Sport Drink Powder), China, December 2015 
Products without additives/preservatives
Figure 32: Nature Wise Ren Can Yin Pin (Ginseng Drink), China, May 2016; Xiaoyang Ru Suan Yan Xi You Wei Wei Sheng Su Guo Wei Yin Liao (Grapefruit Flavoured Vitamins Fruit Drink), China, May 2016
Figure 33: Jianlibao Cheng Mi Wei Yun Dong Yin Liao (Orange and Honey Flavoured Sports Drink), China, January 2016 and February 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
Men are the most pronounced medium users
Different usage barriers for the young and for low earners
Most sports drinks have been consumed outdoors while most energy drinks for boosting energy
Flavour and functional effectiveness are purchase stimulators
Adequate product information on packaging is a key differentiator
Meet the Mintropolitans
DRINKING FREQUENCY
Consumption changes between medium and light users
Men are the main medium users
Figure 34: Frequency of drinking sports and energy drinks, track changes, April 2014 and April 2016
Figure 35: Frequency of drinking sports and energy drinks, by gender and age of medium users, April 2016
USAGE BARRIERS
Scepticism over functional benefits is the primary usage barrier
Young people and low earners doubt energy boost claims for different reasons
Figure 36: Usage barriers of sports and energy drinks, April 2016
Figure 37: Number one usage barrier, by age, April 2016
Figure 38: Number one usage barrier, by personal monthly income and monthly household income, April 2016
Figure 39: TravelAID Recovery Drink, US, March 2016
DRINKING OCCASIONS
Sports drinks have been consumed for outdoor occasions mostly
Energy drinks are drunk mostly due to a need for boosting energy
Figure 40: Drinking occasions for sports drinks, April 2016
Figure 41: Drinking occasions for energy drinks, April 2016
Figure 42: Nutrisens Sport Récup Max Crème Lactée de Récupération Saveur Chocolat (Chocolate Flavoured Recovery Cream), France, April 2016; Waker Energy Drink a Base de Cafeína Natural da Erva-Mate e do Guaraná (Yerba Mate & Guarana Energy Drink), Brazil, July 2015
PURCHASE CHANNELS
Traditional retail channels have the highest penetration
Young and adult groups shop the most at retail channels
Figure 43: Purchase channels, April 2016
Figure 44: Cross analysis, purchase channels by purchase triggers, April 2016
Figure 45: Purchase channels, by age, April 2016
PURCHASE TRIGGERS
Flavour as a key factor to purchase
Medium and light users care about energy-boosting effectiveness the most
Figure 46: Purchase triggers, April 2016
Figure 47: Purchase triggers – CHAID – Tree output, April 2016
Figure 48: E-hydrate Kids Cinnamon Roll Flavored Natural Protein On-the-Go, US, June 2016; Kao Healthya Walk Plum Flavour Sports Drink, Japan, October 2015; Freeway Up Bebida Energética Light com Cafeína (Light Energy Drink), Germany, September 2015
CONSUMER ATTITUDES
Product transparency is crucial to attract people
Higher city tier residents favour exclusive online offer
Product varieties needed for sports and energy drink adventurers
Figure 49: Consumer attitudes, April 2016
Figure 50: Junin Maca Ying Yang Su Yin Liao (Nutrient Drink), China, April.2015
Figure 51: Consumer attitudes, by city tier, April 2016
Figure 52: Overstims’ Energix Délice Gel Énergetique Endurance Saveur Tomate (Tomato Flavoured Energy Endurance Gel), France, June 2016
MINTROPOLITANS 
Demographics and characteristics
Lifestyle
Figure 53: Demographic profile of Mintropolitans versus non-Mintropolitans, sports and energy drinks, by gender, age, and marital status, April 2016
Figure 54: Demographic profile of Mintropolitans versus non-Mintropolitans, sports and energy drinks, by monthly personal income, monthly household income, and city tier, April 2016
APPENDIX – METHODOLOGY AND DEFINITIONS
Methodology
Fan chart forecast
Mintropolitans – Definition
Abbreviations