2021
0
China RTD Coffee Market Report 2021
2021-10-20T04:08:10+01:00
OX1049697
3695
143639
[{"name":"Coffee","url":"https:\/\/store.mintel.com\/industries\/drinks\/coffee"}]
Report
en_GB
"The RTD coffee market is expected to recover quickly and continue a double-digit growth momentum in the next five years. However, it faces threats from instant and freshly made coffee.

China RTD Coffee Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“The RTD coffee market is expected to recover quickly and continue a double-digit growth momentum in the next five years. However, it faces threats from instant and freshly made coffee. To stay relevant, brands should catch up with the plant-based trend and continue investment in flavour innovations. At the same time, functional benefits beyond a refreshing effect should also be promoted in RTD coffee products to differentiate from other coffee types.”

– Joy Yin, Senior Research Analyst

This report will look at the following areas:

  • Market growth and competitive landscape in the RTD coffee sector.
  • Innovative product launches and marketing activities for RTD coffee.
  • Consumers’ usage and perception towards RTD coffee and other coffee types.
  • Consumers’ choice factors and perceived premium features when purchasing RTD coffee products.
  • Growth strategy for RTD coffee to compete against other coffee types.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Covered in this Report
        • Executive Summary

            • The market
              • Growth bounced back to pre-COVID levels
                • Figure 1: Forecast of retail market value of RTD coffee, China, 2016-2026
                • Figure 2: Forecast of retail market volume of RTD coffee, China, 2016-2026
              • Companies and brands
                • Nestlé leads the market where competition intensifies
                  • Figure 3: Market share, by leading RTD coffee players, by value, China, 2019-2021
                • Innovation targets flavours and texture but on the premise of health
                  • The consumer
                    • Lower penetration and consumption frequency than instant and freshly made coffee
                      • Figure 4: Consumption usage, by segment penetration, 2021
                      • Figure 5: Consumption usage, by consumption frequency, 2021
                      • Figure 6: Consumption usage, by consumption occasion of top 3 coffee types, 2021
                    • Offline channels dominate, while online channels are chasing close
                      • Figure 7: Purchasing channels, 2021
                    • Taste and refreshing effects are the most important choice factors
                      • Figure 8: Choice factors, 2021
                    • Alternative sugar options are mostly wanted, while cold brew lacks market education
                      • Figure 9: Premiumisation features, 2021
                    • Plant-based is of interest, while alcoholic ingredients are not preferred
                      • Figure 10: Interest in innovation, 2021
                    • A vague line between coffee-flavoured beverage and authentic coffee
                      • Figure 11: Attitudes towards RTD coffee, 2021
                    • What we think
                    • Issues and Insights

                      • Provide functional benefits beyond refreshing effect
                        • The facts
                          • The implications
                              • Figure 12: Product examples of RTD coffee with natural functional ingredients, Global, 2020
                            • Premiumise with reduced-sugar product varieties
                              • The facts
                                • The implications
                                  • Figure 13: Product examples of Never Coffee, China, 2021
                                • Catch up with the plant-based trend from freshly made coffee
                                  • The facts
                                    • The implications
                                      • Figure 14: Percent of “plant-based” claims in RTD coffee launches, Global, by country, Sep 2020-Aug 2021
                                      • Figure 15: Product examples of plant-based RTD coffee, Global, 2021
                                  • The Market – Market Size and Forecast

                                    • Growth momentum recovers after the pandemic
                                      • Figure 16: Retail market value of RTD coffee, China, 2016-2026
                                    • Premiumisation trend continues
                                      • Figure 17: Retail market volume of RTD coffee, China, 2016-2026
                                  • Market Factors

                                    • Retail consumption is recovering
                                      • Figure 18: YoY growth (%) in retail sales of goods, China, Aug 2020-Jul 2021
                                    • The healthy eating trend goes on
                                      • Working hours have increased
                                        • Demand for convenience is high
                                        • Key Players – Market Share

                                          • Nestlé shows clear dominance
                                            • Other strong players
                                              • Players in adjacent categories entered the market
                                                • Figure 19: Market share, by leading RTD coffee players, by value, China, 2019-2021
                                                • Figure 20: Product examples of brands in adjacent categories, China, 2020
                                            • Marketing Activities

                                              • Livestreaming ecommerce
                                                • Figure 21: Examples of RTD coffee products on livestreaming ecommerce platforms, China, 2021
                                              • Enhanced visual effects
                                                • Public transportation: immersive experience
                                                  • Figure 22: Nestlé’s advertisement of its new product on the metro, China, 2021
                                                • Packaging: artsy and cartoon designs
                                                  • Figure 23: Shan Cheng Yang Hang’s RTD coffee with specially designed package, Taiwan, 2021
                                                  • Figure 24: Nescafé x Sou·Sou Lucky Cat Limited edition, Hong Kong, 2021
                                                • Launch peripherals to enhance brand image
                                                  • Figure 25: Nestlé Cherry Blossom Soufflé Latte’s peripherals, China, 2021
                                                  • Figure 26: Examples of Keigo x Nescafé’s peripherals, Hong Kong, 2021
                                              • New Product Trends

                                                • More flavours especially in flora and fruit
                                                  • Figure 27: Percentage of flavour component groups in RTD coffee launches, China, Sep 2016-Aug 2021
                                                  • Figure 28: Product examples with floral or fruit flavours, China, 2020-2021
                                                • The trend of reducing sugar and fat
                                                  • Figure 29: “Minus” claims of RTD coffee, China, Sep 2016-Aug 2021
                                                  • Figure 30: Product examples with reduced fat or sugar claims, China, 2020-2021
                                                • Seasonal products are on the rise
                                                  • Figure 31: Percentage of “seasonal” claims in new RTD launches, Sep 2016-Aug 2021
                                                  • Figure 32: Product examples with seasonal claims, China, 2020-2021
                                                • Bubbling taste emerges
                                                  • Figure 33: Product examples with sparkling taste, Global, 2021
                                                  • Figure 34: Nitro RTD coffee examples, Global, 2021
                                              • The Consumer – Consumption Usage

                                                • Penetration is surpassed by instant and freshly made coffee
                                                  • Figure 35: Consumption usage, by segment penetration, 2021
                                                  • Figure 36: Ranking of the penetration of different types of coffee, China, 2016-2021
                                                  • Figure 37: Consumption usage, by segment penetration of top 3 coffee types, by city tier, 2021
                                                • Major coffee types share similar consumer base
                                                    • Figure 38: Consumption usage, by cross-segment penetration of top 3 coffee types, 2021
                                                  • RTD coffee has a low consumption frequency
                                                      • Figure 39: Consumption usage, by consumption frequency, 2021
                                                      • Figure 40: Consumption usage, by consumption frequency of RTD coffee, by income, 2021
                                                    • Consumption is more on weekdays than during weekends
                                                        • Figure 41: Consumption usage, by consumption occasion of top 3 coffee types, 2021
                                                        • Figure 42: Consumption usage, by consumption occasion of RTD coffee, by age, 2021
                                                    • Purchasing Channels

                                                      • Offline channels dominate, while online channels are chasing closely
                                                        • Figure 43: Purchasing channels, 2021
                                                      • Young consumers skew towards grab-and-go
                                                        • Figure 44: Purchasing channels – offline, by age, 2021
                                                        • Figure 45: Purchasing channels – online, by age, 2021
                                                    • Choice Factors

                                                      • Taste and refreshing effects are the most important attributes
                                                        • Figure 46: Choice factors, 2021
                                                        • Figure 47: Choice factors TURF Analysis, 2021
                                                      • Sugar and fat content are not considered as important
                                                        • Figure 48: Choice factor – content of sugar and fat, by gender, 2021
                                                      • Convenience for weekdays, quality for weekends
                                                        • Figure 49: Choice factors, by consumption occasions, 2021
                                                    • Premiumisation Features

                                                      • Alternative sugar options are mostly wanted in premiumisation features
                                                        • Figure 50: Premiumisation features, 2021
                                                      • Cold brew is not considered a value-add
                                                        • Figure 51: RTD coffee with “cold-brewed” claims, China, Sep 2016-Aug 2021
                                                      • “Minus” for young consumers, “plus” for older groups
                                                        • Figure 52: Premiumisation features – selected, by age, 2021
                                                      • Fortified nutrition is more attractive to heavy users
                                                        • Figure 53: Premiumisation features, by consumption frequency, 2021
                                                    • Interest in Innovation

                                                      • Plant-based gains the most interest…
                                                        • Figure 54: Interest in innovation, 2021
                                                      • …while alcoholic RTD coffee is the least welcomed
                                                        • Better served at chilled temperature
                                                          • Figure 55: Interest in innovation, by attitudes towards chilled RTD coffee, 2021
                                                      • Attitudes towards RTD Coffee

                                                        • Blurred perception but strong preference for coffee chains’ brands
                                                          • Figure 56: Attitudes towards RTD coffee, 2021
                                                        • Competitive advantages of more flavour choices and better value for money
                                                          • Figure 57: Attitudes towards RTD coffee – when compared with other formats of coffee products, 2021
                                                        • Target young consumers with chilled canned products
                                                          • Figure 58: Attitudes towards RTD coffee formats, 2021
                                                          • Figure 59: Attitudes towards canned or bottled RTD coffee, by preference for chilled products, 2021
                                                          • Figure 60: Attitudes towards RTD coffee formats, by age, 2021
                                                        • Perception of sugar and caffeine content influences consumption frequency
                                                          • Figure 61: Attitudes towards RTD coffee ingredients, 2021
                                                          • Figure 62: Attitudes towards ingredients, by consumption frequency, 2021
                                                      • Appendix – Market Size and Forecast

                                                          • Figure 63: Market value of RTD coffee, 2016-2026
                                                          • Figure 64: Market volume of RTD coffee, 2016-2026
                                                      • Appendix – Methodology and Abbreviations

                                                        • Methodology
                                                          • Abbreviations

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