2021
0
China Tea Drinks Market Report 2021
2021-05-27T04:08:36+01:00
OX1049597
3695
138886
[{"name":"Tea and Other Hot Drinks","url":"https:\/\/store.mintel.com\/industries\/drinks\/tea"}]
Report
en_GB
“Tea drinks of different formats have experienced the pandemic differently, with the RTD segment facing challenges posed by limits on out-of-home consumption, while tea infusions enjoyed an uplift thanks to…

China Tea Drinks Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Tea drinks of different formats have experienced the pandemic differently, with the RTD segment facing challenges posed by limits on out-of-home consumption, while tea infusions enjoyed an uplift thanks to the increased time spent at home. Successful practices have been borrowed from the instant coffee market, precipitating a premiumised consumption trend in tea drinks. The tea drinks market is also embracing functional innovations catering to consumer needs for de-stressing and beauty needs among female tea drinkers.”

– Jenny Li, Category Director

This report will look at the following areas:

  • The value of market segmentation in 2020
  • How key market players are counteracting the pandemic
  • Influences from the instant coffee market
  • Changes in the tea drink tradition
  • Consumer attitudes towards sugar substitutes in tea drinks  
  • Growth opportunities in functional benefits and emotional wellbeing

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Covered in this Report
          • Report Scope
            • Definitions
              • Figure 1: Definition of low/middle/high personal income groups, by city tiers
          • Executive Summary

              • The market
                • Differing segment performance during COVID-19
                  • Figure 2: Best- and worst-case forecast of value sales of RTD Asian herbal tea, 2015-2025
                  • Figure 3: Best- and worst-case forecast of value sales of RTD non-Asian herbal tea, 2015-2025
                  • Figure 4: Best- and worst-case forecast of value sales of teabags, 2015-2025
                • Companies and brands
                  • RTD non-Asian herbal tea players benefited from e-commerce and digital marketing
                    • Figure 5: Market share of leading RTD tea players, by value, China, 2018-2020
                  • Targeting consumers’ in-home scenario
                    • Technology borrowed from adjacent categories
                      • The consumer
                        • Consumers upgrading to instant tea formats
                          • Figure 6: Consumption frequency, February 2021
                        • Tea drinks’ role in emotional wellbeing could be bigger
                          • Figure 7: Functional interests, February 2021
                        • Fruit-flavoured tea drinks are the next trend to watch
                          • Figure 8: Ingredient preference, February 2021
                        • Novelty and speciality entice consumers to try new products
                          • Figure 9: Purchase drivers, February 2021
                        • Consumers still buy into more tangible, obvious premiumisation factors
                          • Figure 10: Product premiumisation, February 2021
                        • Mixed views about sugar substitutes but majority still feel positive about their functional benefits
                          • Figure 11: Selected attitudes towards sucrose and sugar substitutes, February 2021
                        • What we think
                        • Issues and Insights

                          • Success in instant coffee market can inspire innovation in instant tea
                            • The facts
                              • The implications
                                • Figure 12: Yongpu flash brew concentrated tea liquid
                                • Figure 13: Saturnbird’s Project Return
                              • Fruit-flavoured tea drinks can cater to emotional wellbeing
                                • The facts
                                  • The implications
                                    • Figure 14: Examples of multi-sensory products
                                  • Sugar substitutes generate consumer expectations of functional benefits
                                    • The facts
                                      • The implications
                                      • The Market – What You Need to Know

                                        • COVID-19 dampened out-of-home RTD consumptions
                                          • Teabags winning with increased in-home occasions
                                            • Functional wellbeing features fuel future growth
                                            • Market Size and Forecast

                                              • RTD tea drinks recover from short term decline due to COVID-19 propelled by e-commerce
                                                • Figure 15: Best-and worst-case forecast of value sales of RTD tea drinks, 2015-2025
                                                • Figure 16: Best-and worst-case forecast of volume sales of RTD tea drinks, 2015-2025
                                              • Teabags’ rapid growth boosted by increased in-home occasions and new products booming online
                                                • Figure 17: Best-and worst-case forecast of value sales of teabags, 2015-2025
                                                • Figure 18: Best-and worst-case forecast of volume sales of teabags, 2015-2025
                                            • Market Factors

                                              • Increasing stress in life urges attention to wellbeing
                                                • Sugar substitutes are becoming the new ordinary in consumer choices
                                                  • Tea houses have inspired RTD innovation but also limited the latter’s premium pricing
                                                    • Figure 19: Examples of RTD tea drinks inspired by popular flavours in tea houses
                                                  • Revival of Chinese heritage and culture brings new vibe
                                                    • Figure 20: Top five claim categories in tea drinks (RTD and tea infusions) launched globally, 2016-2020
                                                    • Figure 21: An example of the contemporary tea house Sexy Tea (茶颜悦色)
                                                  • Approval of hyaluronic acid as new food material brings innovation opportunities
                                                    • Figure 22: Bloomage Biotech’s new bottled water fortified with hyaluronic acid
                                                    • Figure 23: HanKowErChang’s new carbonated flavoured drink fortified with hyaluronic acid
                                                • Market Segmentation

                                                  • RTD Asian herbal tea continues to struggle in constrained consumption occasions
                                                    • Figure 24: Best-and worst-case forecast of value sales of RTD Asian herbal tea, 2015-2025
                                                  • RTD non-Asian herbal tea propelled with active product innovation
                                                    • Figure 25: Best-and worst-case forecast of value sales of RTD non -herbal tea, 2015-2025
                                                  • Teabags ride high on in-home consumption dividend via e-commerce
                                                    • Figure 26: Best-and worst-case forecast of value sales of teabags, 2015-2025
                                                • Key Players – What You Need to Know

                                                  • Products revamped with clean label, rich texture and convenience
                                                    • Exploring tea drink occasions with blurring experiences
                                                      • Premiumisation with tech-supported product innovation
                                                      • Market Share

                                                        • Tingyi sustained market lead with new channel marketing strategies
                                                          • Guangzhou Baiyunshan Pharmaceutical hit by recession in Asian herbal tea
                                                            • Uni-President capitalised on younger consumer market
                                                              • Other companies are revamping product formats
                                                                • Figure 27: Market share of leading RTD tea players, by value, China, 2018-2020
                                                                • Figure 28: Market share of leading RTD tea players, by volume, China, 2018-2020
                                                            • Competitive Strategies

                                                              • Tea drinks and coffee blurring revolution
                                                                • Figure 29: Saturnbird and Sexy Tea (茶颜悦色) co-branding in China, 2020
                                                              • Targeting in-home consumption
                                                                • Figure 30: C’estbon’s product ZuoWeiChaShi (佐味茶事) launched in China, 2019
                                                                • Figure 31: YuanQiSenLin’s baked oolong tea (焙火乌龙茶) in China, 2021
                                                              • Marketing to younger generations
                                                                • Figure 32: Examples of Uni-President’s marketing strategies targeting young consumers in China, 2020
                                                            • Who’s Innovating?

                                                              • Tea concentrations restoring the taste of ‘good tea’
                                                                • Figure 33: Top 5 markets for tea infusion product launches, 2016-2020
                                                                • Figure 34: Tea infusion product launches in China, by format, 2016-2020
                                                                • Figure 35: Examples of new launches of tea pods and concentrated liquid format tea
                                                                • Figure 36: % of new tea drinks in powder format as a share of total tea infusion launches in China, 2016-2020
                                                                • Figure 37: Yongpu’s new concentrated tea product in china
                                                              • Teabags brewing for emotional wellbeing
                                                                • Figure 38: Top five functional claims in tea infusion products launched globally, 2016-2020
                                                                • Figure 39: Top five functional claims in tea infusion products launched in China, 2016-2020
                                                                • Figure 40: Chali (left) and Nayuki (right) gift packages in china
                                                                • Figure 41: Samova’s Flowering Teabags product in Germany, the teabag opens slowly depending on the water temperature
                                                                • Figure 42: Minorien’s Fishing Cat Tea in Japan
                                                              • Cold brew tea technology redefines freshness
                                                                • Figure 43: Top 5 claims in RTD tea drink product launches in China, 2016-2020
                                                                • Figure 44: Examples of tea drinks utilising HPP technology
                                                            • The Consumer – What You Need to Know

                                                              • Consumers favour new formats
                                                                • Comforting stress with fruit-flavoured tea drinks
                                                                  • Consumers are prepared to pay more for sugar substitutes
                                                                  • Consumption Frequency

                                                                    • Freshly brewed tea leaves lead in daily consumption habits
                                                                      • Figure 45: Consumption frequency, February 2021
                                                                    • Top sellers in tea houses may be shortcut for ready-to-drink tea
                                                                      • Figure 46: Consumption frequency, by type of users, February 2021
                                                                    • Growing consumption of instant tea drinks across all income levels
                                                                      • Figure 47: Consumption frequency, by type of users, January 2017, February 2020 & 2021
                                                                      • Figure 48: Consumption frequency, by type of users, by income level, February 2020 & 2021
                                                                    • Freshly brewed tea leaves and herbal tea popularity is declining
                                                                      • Figure 49: Consumption frequency, February 2020 & 2021
                                                                  • Interest in Functional Claims

                                                                    • Drinking tea to relieve stress
                                                                      • Figure 50: Interest in functional claims, February 2021
                                                                      • Figure 51: RTD tea drink product launches with functional claims in china, 2016-2020
                                                                    • Different focuses among men and women
                                                                      • Figure 52: Functional interests, by gender, February 2021
                                                                  • Ingredient Pairing

                                                                    • Fruity ingredients favoured for their natural and relieving features
                                                                      • Figure 53: Ingredient preference, February 2021
                                                                    • Interest in plant-based milk is higher than dairy milk
                                                                      • Figure 54: Ingredient preference, plant-based milk vs dairy milk, February 2021
                                                                    • Opposite ends of age spectrum prefer pure tea
                                                                      • Figure 55: Ingredient preference – I like pure tea for this, by age group, February 2021
                                                                  • New Product Purchase Triggers

                                                                    • Novelty and speciality rank top
                                                                      • Figure 56: New product purchase triggers, February 2021
                                                                      • Figure 57: New product purchase triggers, TURF analysis, February 2021
                                                                    • Females are fans of packaging appearance
                                                                      • Figure 58: Purchase drivers, by gender, February 2021
                                                                    • IWOM targets segmented consumer groups
                                                                      • Figure 59: Purchase drivers, by gender and age group, February 2021
                                                                  • Premium Features

                                                                    • Innovation in freshness is wanted by the young
                                                                      • Figure 60: Product premiumisation, February 2021
                                                                    • Dissimilar features desired by women of different income levels
                                                                      • Figure 61: Product premiumisation, by female and income levels, February 2021
                                                                    • Organic well matched with beauty enhancing features
                                                                      • Figure 62: Product premiumisation, by interest in functional claims, February 2021
                                                                  • Attitudes towards Sucrose and Sugar Substitutes

                                                                    • Confusion about what sugar-free means still common
                                                                      • Figure 63: Selected attitudes towards sucrose and sugar substitutes, February 2021
                                                                    • Nearly half of consumers have no negative health association with sugar substitutes
                                                                      • Figure 64: Selected attitudes towards sucrose and sugar substitutes (association with health), February 2021
                                                                      • Figure 65: Selected attitudes towards sucrose and sugar substitutes (association with health), February 2021
                                                                    • Be more vocal about potential functional benefits of sugar substitutes
                                                                      • Figure 66: Selected attitudes towards sucrose and sugar substitutes, February 2021
                                                                      • Figure 67: Selected attitudes towards sucrose and sugar substitutes, February 2021
                                                                      • Figure 68: Selected attitudes towards sucrose and sugar substitutes, February 2021
                                                                      • Figure 69: RTD tea drink product launches with sugar-free claims in China, 2016-2020
                                                                  • Appendix – Market Size and Forecast

                                                                      • Figure 70: Total market value of RTD tea drinks, China, 2015-2025
                                                                      • Figure 71: Total market volume of RTD tea drinks, China, 2015-2025
                                                                      • Figure 72: Total market value of teabags, China, 2015-2025
                                                                      • Figure 73: Total market volume of RTD teabags, China, 2015-2025
                                                                  • Appendix – Market Segmentation

                                                                      • Figure 74: Total market value of RTD Asian herbal tea drinks, China, 2015-2025
                                                                      • Figure 75: Total market value of RTD non-Asian herbal tea drinks, China, 2015-2025
                                                                  • Appendix – Methodology and Abbreviations

                                                                    • Report Methodology
                                                                      • TURF Analysis Methodology
                                                                        • Abbreviations

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