Tea Drinks - China - April 2016
“The ready-to-drink tea drinks market in China has developed slowly over recent years. Intense competition from other soft drink categories and the decline in demand for green and black/red tea drinks, and lack of product innovation have all led to the poor performance of the current market. Despite the pressure, future growth is projected due to the continuing progress of premiumisation and trading up, innovation in flavours and ingredients, and effective consumer segmentation and targeting.”
– Lei Li, Research Analyst
This report looks at the following areas:
- How to use multiple purchasing channels to target RTD tea buyers and drinkers?
- How to utilise flavour variety and ingredient innovation to attract consumers?
- How to target female high earners and stimulate trading up?
In spite of the current market slowdown and cross-soft drink category competition, the ready-to-drink (RTD) tea market in China is still far from saturated, and therefore has huge potential and growth projections. The development of the market relies on maintaining good sub-category performance, premiumisation, flavour and ingredient innovation, and ethical positioning. Due to consumers’ traditional health associations and perceptions to tea, RTD tea drinks as an alternative to freshly brewed tea definitely have a competitive advantage over other soft drinks; yet, those advantages need to be explored further and to be applied successfully into diverse consumer segments by companies and brands.
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