2022
0
China Tea Drinks Market Report 2022
2022-05-10T04:03:38+01:00
OX1104755
3695
151101
[{"name":"Tea and Other Hot Drinks","url":"https:\/\/store.mintel.com\/industries\/drinks\/tea"}]
Report
en_GB
“RTD tea drinks returned to its growth trajectory in 2021 with resumed out-of-home consumption occasions, while tea bags still achieved strong growth with increased innovation activities. It’s important to pay…

China Tea Drinks Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“RTD tea drinks returned to its growth trajectory in 2021 with resumed out-of-home consumption occasions, while tea bags still achieved strong growth with increased innovation activities. It’s important to pay more attention to consumers’ evolving taste preferences with a diversified product portfolio, including pure and niche tea offerings with health benefits. Meanwhile, the opportunity exists for tea infusions to tap into young consumers by developing cold brew options which can better satisfy their serving temperature preference.”

– Roolee Lu, Senior Research Analyst

Key issues covered in this Report

  • Future market outlook and growth prospects in the next five years
  • COVID-19’s impact on the tea drink market and market value forecast under different scenarios
  • Latest new product trends and growth opportunities
  • Change in consumption trends and consumption occasions  
  • Perception of different tea drink formats
  • Product preference and interested features when making purchase decisions

Table of Contents

  1. Overview

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

              • The market
                • RTD tea drinks returned to growth in 2021…
                  • Figure 1: Total value sales of RTD tea drinks, China, 2016-2021
                  • Figure 2: Total value sales of RTD Asian herbal tea drinks, China, 2016-2021
                  • Figure 3: Total value sales of RTD non-Asian herbal tea drinks, China, 2016-2021
                • …while tea bags still achieved a double-digit growth
                  • Figure 4: Total value sales of tea bags, China, 2016-2021
                • The impact from COVID-19 outbreak in 2022
                  • Figure 5: Summary of Mintel’s scenario expectations and the impact on the RTD tea drink and tea bag market, 2022
                  • Figure 6: COVID-19 scenario value forecasts for RTD tea drinks, 2016-2026
                  • Figure 7: COVID-19 scenario value forecasts for tea bags, 2016-2026
                • Companies and brands
                  • Leading players are expanding their portfolio in response to intensified competition after new entrants
                    • Figure 8: Leading RTD tea companies, by value share, 2019-2021
                  • Further increased innovation activity of RTD tea and tea bags
                    • The consumer
                      • RTD herbal tea witnessed greatest increase in heavy users
                        • Figure 9: Consumption frequency, 2022
                      • Tea drinks are consumed for both casual and busy purposes
                        • Figure 10: Consumption occasion, 2022
                      • Tea leaves lack a trendy image, while RTD tea drinks are perceived as convenient and tasty
                        • Figure 11: Correspondence analysis* – perception of tea drinks, 2022
                      • Explorative consumers are trying different types of tea
                        • Figure 12: Types of tea consumed, 2022
                      • Health benefits should be a focus in product communication
                        • Figure 13: Interested features, 2022
                      • Develop cold brew options to expand audience among young consumers
                        • Figure 14: Product preference – select item, by age, 2022
                      • What we think
                      • Issues and Insights

                        • Develop niche and pure tea drinks to intrigue consumption interest
                          • The facts
                            • The implications
                              • Figure 15: New white tea products launched in tea drinks, China, 2017-21
                              • Figure 16: Product examples of white tea drinks, China, 2022
                              • Figure 17: Product examples of RTD Hojicha and barley tea, Japan, 2021-22
                            • Utilise cold brew tea infusions to tap into young consumers
                              • The facts
                                • The implications
                                  • Figure 18: Cold brew tea bags from Nayuki and Sexy Tea, China, 2022
                                  • Figure 19: BASAO X HARIO Cold Brew Bottle, China, 2022
                                • Create new consumption occasions with blurring inspirations
                                  • The facts
                                    • The implications
                                      • Figure 20: 3OVER8 Moonlight White Fresh Tea, China, 2022
                                  • Market Size and Segmentation

                                    • RTD tea drinks experienced a rebound in both consumption value and volume
                                      • Figure 21: Total value sales of RTD tea drinks, China, 2016-2021
                                      • Figure 22: Total volume sales of RTD tea drinks, China, 2016-2021
                                    • RTD Asian herbal tea saw a recovery in 2021
                                      • Figure 23: Total value sales of RTD Asian herbal tea drinks, China, 2016-2021
                                    • RTD non-Asian herbal tea maintained growth momentum with better-for-you options
                                      • Figure 24: Total value sales of RTD non-Asian herbal tea drinks, China, 2016-2021
                                    • Tea bags continue strong growth after the initial outbreak
                                      • Figure 25: Total value sales of tea bags, China, 2016-2021
                                      • Figure 26: Total volume sales of tea bags, China, 2016-2021
                                  • Market Factors

                                    • Online retail sales keep climbing
                                      • Promoting high-quality agriculture development under China’s 14th Five-Year Plan
                                      • COVID Influences (Including Market Forecast)

                                        • COVID-19 China context
                                          • COVID-19 impact on the market and consumer
                                            • Drop in both financial status and spending confidence
                                              • Accelerated spending on food and drink driven by stockpiling demand
                                                • Figure 27: Change in spending – spent more, 2020-22
                                                • Figure 28: Change in spending – spent more, 2020-22
                                              • Still more trading up than trading down in non-alcoholic drinks
                                                • Figure 29: Trading up and down plans – non-alcoholic drinks, 2021-22
                                              • Market forecast
                                                • Tea bags are expected to maintain stronger growth than RTD tea drinks under minimum impact
                                                  • Figure 30: COVID-19 scenario value forecasts for RTD tea drinks, 2016-2026
                                                  • Figure 31: COVID-19 scenario value forecasts for tea bags, 2016-2026
                                                • Consumption will be majorly affected by limited access in medium-impact scenario
                                                  • High-impact scenario may result in decline in value sales and affect trading up plans
                                                  • Market Share

                                                    • Leading players are expanding their portfolio with better-for-you and niche tea products
                                                      • Figure 32: Leading RTD tea companies, by value share, 2019-2021
                                                      • Figure 33: Leading RTD tea companies, by volume share, 2019-2021
                                                    • Brands from adjacent categories bring new blood to the market
                                                      • Figure 34: Product examples of RTD tea from Heytea, Nayuki and Yili, China, 2021-22
                                                  • Marketing Activities

                                                    • Tap into festival occasions with limited and personalised editions
                                                      • Figure 35: Limited and personalised editions from Lin-Long Tea House and Wanglaoji , China, 2021-22
                                                    • Develop customised products for female consumers
                                                      • Figure 36: TN Jiao Nang Cha Yu Rainbow-colored capsule tea, China, 2022
                                                    • Switch to unlabeled products to support carbon reduction
                                                      • Figure 37: Master Kong unlabeled sugar-free iced black tea, China, 2022
                                                  • New Product Trends

                                                    • Further increased NPD activity of RTD tea…
                                                      • Figure 38: New products launched in tea drinks, by subcategory, China, 2017-21
                                                    • …while tea bags become the most preferred format in tea infusion
                                                      • Figure 39: New products launched in tea infusions, by format type, China, 2017-21
                                                      • Figure 40: Product examples of different tea infusion formats, China, 2021
                                                    • Growing focus on minus and plant-based in new RTD tea launches
                                                      • Figure 41: New products launched in RTD tea, by top growing claim, China, 2017-21
                                                      • Figure 42: Product examples of RTD tea with L/N/R fat claim, China, 2021
                                                      • Figure 43: Product examples of RTD tea with plant-based claim, China, 2021
                                                    • Plain and fruity flavours dominate, while floral RTD tea is on the rise
                                                      • Figure 44: New products launched in RTD tea, by top flavour (inc. blend) unordered, China, 2017-21
                                                      • Figure 45: Product examples of unflavoured/plain RTD tea, China, 2021
                                                      • Figure 46: New products launched in RTD tea, by top growing flavour (inc. blend) unordered, China, 2017-21
                                                      • Figure 47: Product examples of jasmine, osmanthus and roasted/toasted RTD tea, China, 2021
                                                    • Growing communication around ‘minus’ and ‘ethical’ in tea infusions
                                                      • Figure 48: New products launched in tea infusions, by claim category, China, 2017-21
                                                      • Figure 49: New products launched in tea infusions, by top growing claim, China, 2017-21
                                                      • Figure 50: Product examples of tea infusion with minus claims, China, 2021
                                                      • Figure 51: Product examples of tea infusion with ethical & environmental claims, China, 2021
                                                  • Consumption Frequency

                                                    • Penetration of different tea segments remains stable
                                                      • Figure 52: Consumption frequency, 2022
                                                      • Figure 53: Segment penetration, 2021-22
                                                    • Males aged 18-24 prefer RTD tea drinks, while more females choose RTD milk tea
                                                      • Figure 54: Consumption frequency – heavy users, 2021-22
                                                      • Figure 55: Consumption frequency of RTD tea drinks – heavy users, by gender and age, 2022
                                                    • More post-90s favour convenient tea infusion formats
                                                      • Figure 56: Consumption frequency of tea infusions – heavy users, by generation, 2022
                                                      • Figure 57: Consumption frequency – heavy users, by region, 2022
                                                  • Consumption Occasion

                                                    • Tea drinks commonly used on both causal and busy occasions
                                                      • Figure 58: Consumption occasion, 2022
                                                    • Position tea drinks as an ideal meal partner
                                                      • Figure 59: Consumption occasion – select items, by age, 2022
                                                      • Figure 60: Product examples of Genki Forest Xian Tea, China, 2021
                                                    • Commuting occasions are more popular after life returns to normal
                                                      • Figure 61: Consumption occasion, 2020-22
                                                  • Perception of Tea Drinks

                                                    • Tea leaves lack a trendy image among young consumers
                                                      • Figure 62: Correspondence analysis* – perception of tea drinks, 2022
                                                    • RTD tea drinks stand out for convenience, taste and extensive options
                                                      • Tea powder and concentrate can tap into the blurring trend
                                                      • Types of Tea Consumed

                                                        • Consumers are exploring different types of tea
                                                          • Figure 63: Types of tea consumed, 2022
                                                          • Figure 64: Repertoire analysis – types of tea consumed, by gender, age, monthly household income and region, 2022
                                                        • Regional differences in Pu’er and white tea consumption
                                                          • Figure 65: Types of tea consumed – select items, by region, 2022
                                                          • Figure 66: Types of tea consumed – select items, by age, 2022
                                                        • Introducing niche tea types to attract female consumers
                                                          • Figure 67: Types of tea consumed – select items, by gender, 2022
                                                      • Interested Features

                                                        • Health benefits are of most importance in product communication
                                                          • Figure 68: Interested features, 2022
                                                          • Figure 69: TURF analysis – interested features, 2022
                                                        • ‘Added’ and ‘free from’ messages should be visualised on packaging
                                                          • Figure 70: Interested features, by age, 2022
                                                          • Figure 71: Repertoire analysis – interested features, by age, 2022
                                                        • Younger generations value customised products
                                                          • Figure 72: Interested features – select items, by generation, 2022
                                                          • Figure 73: Interested features – select item, by gender and age, 2022
                                                      • Product Preference

                                                        • Cold brew options can help attract young consumers
                                                          • Figure 74: Product preference – select item, by age, 2022
                                                          • Figure 75: Product preference – “I prefer to drink hot tea drinks”, by heavy users of selected tea drinks, 2022
                                                        • Plant-based options can further expand the audience of milk tea
                                                          • Figure 76: Product preference – select item, by age, 2022
                                                        • Pure tea is as important as flavoured tea in NPD
                                                          • Figure 77: Product preference – select item, 2022
                                                          • Figure 78: Product preference – select item, by preference towards plain/unflavoured and flavoured tea drinks, 2022
                                                        • Extensive and natural flavours can attract taste-driven consumers
                                                          • Figure 79: Product preference – select items, by preference towards plain/unflavoured and flavoured tea drinks, 2022
                                                      • Food Personas

                                                        • Who are they?
                                                            • Figure 80: Food personas, 2022
                                                            • Figure 81: Food personas, by generation, 2022
                                                            • Figure 82: Food personas, by gender, 2022
                                                          • Critical shoppers consider various features, while emotional eaters value health benefits
                                                            • Figure 83: Interested features, by food persona, 2022
                                                          • Drinking chilled tea is more popular among new trend explorers
                                                            • Figure 84: Product preference – select items, by food persona, 2022
                                                        • Appendix – Market Size and Forecast

                                                            • Figure 85: Total value sales and forecast of RTD tea drinks in minimum-impact scenario, China, 2016-2026
                                                            • Figure 86: Total volume sales of RTD tea drinks, China, 2016-2021
                                                            • Figure 87: Total value sales and forecast of tea bags in minimum-impact scenario, China, 2016-2026
                                                            • Figure 88: Total volume sales of tea bags, China, 2016-2021
                                                        • Appendix – Market Segmentation

                                                            • Figure 89: Total value sales of RTD Asian herbal tea drinks, China, 2016-2021
                                                            • Figure 90: Total value sales of RTD non-Asian herbal tea drinks, China, 2016-2021
                                                        • Appendix – COVID Scenario Forecast Methodology and Assumptions

                                                          • Minimum-impact, medium-impact and high-impact scenarios outline
                                                            • Scenario methodology
                                                            • Appendix – Methodology and Abbreviations

                                                              • Methodology
                                                                • Abbreviations

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