Hot Drinks in China
Euromonitor International's Hot Drinks in China market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 82 | Publication date: Jul 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Rising incomes boost growth
Hot drinks continued to see strong growth in 2006, being buoyed by rising consumer income levels. These encouraged higher consumption levels, a trading up to higher quality products and also a shift away from unpackaged tea. Growing health awareness also encouraged sales growth, benefiting traditional leader green tea and also a range of tea variants with a healthy positioning and also supporting growth in fortified/functional "other" plant-based hot drinks.
Convenience drives growth for instant drinks
Instant tea and instant standard coffee both saw strong growth in 2006. With growing urbanisation and a greater focus on working long hours and socialising, time-strapped consumers were attracted by the convenience offered by these products. In addition, players attempted to position instant tea and instant standard coffee as an indulgent treat, with the launch of flavoured variants of coffee and instant tea containing jelly.
Heavily fragmented shares with a large number of specialists
Hot drinks is heavily fragmented, with many of the leading players being present in only one product area. Leading player VV Group is, for example, only present in soyabean powder with Wei Wei Soyabean Milk Powder. Third-ranked Guangzhou Kraft is only present in instant standard coffee, while fifth-ranked Unilever is only present in tea. The forecast period is expected to see an increasing number of competitors enter this dynamic area. Nonetheless, the leading players may well gain share as they continue to expand distribution and invest in marketing and new product development.
On-trade dynamic with new chained entrants
The off-trade continued to dominate volume sales of hot drinks in 2006. However, the on-trade proved considerably more dynamic. Growth in the on-trade was boosted in general by rising income levels, which encouraged consumers to socialise more away from home. In addition, however, on-trade sales of coffee were boosted by the expansion of Starbucks and a number of independent cafés following a similar formula. On-trade sales of tea were meanwhile supported by strong expansion of chained tea houses by Tenfu Group, Beijing Zhangyiyuan Beverage Co Ltd and Beijing Wuyutai Tea Co Ltd.
Growing maturity but growth to continue in forecast period
Sales growth is expected to slow for hot drinks during the forecast period. During the review period, expansion focused on the major cities, where an affluent and sophisticated consumer base responded enthusiastically to new trends. During the forecast period, however, players will be attempting to grow sales in smaller cities and rural areas, where consumers often have a preference for traditional products, such as unpackaged green tea. Nonetheless, growth will continue at a good rate, being largely supported by widening interest in coffee and in healthy tea variants such as Oolong and Pu-Erh.
Table of contents
HOT DRINKS IN CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Rising incomes boost growth
Convenience drives growth for instant drinks
Heavily fragmented shares with a large number of specialists
On-trade dynamic with new chained entrants
Growing maturity but growth to continue in forecast period
KEY TRENDS AND DEVELOPMENTS
Rising incomes lead to growing interest in premium products
Busy lifestyles supports growing demand for convenience
Health increasingly shapes consumers attitudes to hot drinks
Westernisation and tradition both important factors in growing sales
Chained specialists on the rise
TERRITORY KEY TRENDS AND DEVELOPMENTS
East China
Mid China
North and Northeast China
Northwest China
South China
Southwest China
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Sales of Hot Drinks by Region: Volume 2001-2006
Table 6 Sales of Hot Drinks by Region: Value 2001-2006
Table 7 Sales of Hot Drinks by Region: % Volume Growth 2001-2006
Table 8 Sales of Hot Drinks by Region: % Value Growth 2001-2006
Table 9 Hot Drinks Company Shares by Value 2002-2006
Table 10 Hot Drinks Brand Shares by Value 2003-2006
Table 11 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 12 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 13 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 14 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 15 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
Table 17 Forecast Sales of Hot Drinks by Region: Volume 2006-2011
Table 18 Forecast Sales of Hot Drinks by Region: Value 2006-2011
Table 19 Forecast Sales of Hot Drinks by Region: % Volume Growth 2006-2011
Table 20 Forecast Sales of Hot Drinks by Region: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - CHINA
CHENGDU STARBUCKS COFFEE CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Starbucks Coffee Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
GUANGDONG YASHILI FOOD CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Guangdong Yashili Food Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Guangdong Yashili Co Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 4 Guangdong Yashili Co Ltd: Competitive Position 2006
GUANGZHOU KRAFT FOOD CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Guangzhou Kraft Food Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Guangzhou Kraft Food Co Ltd: Competitive Position 2006
NESTLé (CHINA) LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Nestlé China Ltd: Key Facts
Summary 8 Nestlé China Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Nestlé China Ltd: Competitive Position 2006
SHANGHAI ASSOCIATED BRITISH FOODS & BEVERAGE CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Shanghai Associated British Foods & Beverage Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Shanghai Associated British Foods & Beverage Co Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 12 Shanghai Associated British Foods & Beverage Co Ltd: Competitive Position 2006
SHANTOU GOLD ROAST FOOD IND CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Shantou Gold Roast Food Ind Co Ltd: Key Facts
Summary 14 Shantou Gold Roast Food Ind Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Shantou Gold Roast Food Ind Co Ltd: Competitive Position 2006
TENFU GROUP - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Tenfu Group: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 17 Tenfu Group: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 18 Tenfu Group: Competitive Position 2006
UNILEVER CHINA LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Unilever China Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 20 Unilever China Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 21 Unilever China Ltd: Competitive Position 2006
VV GROUP - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 22 VV Group: Key Facts
Summary 23 VV Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 24 VV Group: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 25 VV Group: Competitive Position 2006
YUNNAN XIAGUAN TUOCHA (GROUP) CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 26 Yunnan Xiaguan Tuocha (Group) Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 27 Yunnan Xiaguan Tuocha (Group) Co Ltd: Competitive Position 2006
COFFEE IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 21 Sales of Coffee by Type: Volume 2001-2006
Table 22 Sales of Coffee by Type: Value 2001-2006
Table 23 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 24 Sales of Coffee by Type: % Value Growth 2001-2006
Table 25 Instant Coffee by Speciality Type 2004-2006
Table 26 Instant Coffee by Speciality Type 2004-2006
Table 27 Coffee Company Shares 2002-2006
Table 28 Coffee Brand Shares 2003-2006
Table 29 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 30 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 31 Forecast Sales of Coffee by Type: Value 2006-2011
Table 32 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 33 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Sales of Tea by Subsector: Volume 2001-2006
Table 35 Sales of Tea by Subsector: Value 2001-2006
Table 36 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 37 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 38 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 39 Other Tea by Type: % Off-trade Volume 2005-2006
Table 40 Tea Company Shares 2002-2006
Table 41 Tea Brand Shares 2003-2006
Table 42 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 43 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 44 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 45 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 46 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 47 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 48 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 49 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 50 Other Hot Drinks Company Shares 2002-2006
Table 51 Other Hot Drinks Brand Shares 2003-2006
Table 52 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 53 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 54 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 55 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011