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: 93 | Publication date: Apr 2009
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
Healthy growth in hot drinks in economic recession
During the global economic recession, hot drinks maintained healthy growth in 2008. With global financial turmoil in late 2008, China’s economy also suffered shock. However, Chinese consumers did not reduce consumption of hot drinks, because of its low prices and healthy and nutritional attributes. Tea and coffee even experienced a boost: consumers considered them functional in maintaining energy in order to struggle through the hard times.
Melamine event drives hot drinks
In 2008, the melamine event shocked China’s dairy industry and shook the confidence of consumers in dairy related products. Consumers became wary of dairy products and dairy related products. Most of these products were investigated and proved to contain the melamine ingredient that causes kidney stones. With this opportunity created by the turbulence in dairy, hot drinks benefited. It was consumed as a substitute for dairy products in supplying the necessary daily nutrition.
Consolidated coffee versus fragmented tea and other hot drinks
The competitive landscape showed contradiction within Chinese hot drinks. The two multinational giants, Nestlé (China) Ltd and Guangzhou Kraft Food Co Ltd, as the pioneers in coffee remained dominant in China. Meanwhile, tea and other hot drinks were highly fragmented. As the Chinese traditional hot drinks, tea and other hot drinks had a low entry barrier. As a result, a huge number of players competed for shares and no single company was strong enough to dominate.
Supermarkets/hypermarkets and chained specialists increase in importance
Supermarkets/hypermarkets and chained specialist tea stores played increasingly important roles in the distribution of hot drinks in 2008. In China, hot drinks was not commonly purchased for instant consumption. Consumers preferred instead to choose hot drinks in supermarkets/hypermarkets or in chained specialist tea stores, where multiple brands and products were displayed. The rapid expansion of supermarkets/hypermarkets and chained specialists also adversely affected the share of small grocery retailers that could not compete in either price or product variety.
Hot drinks will not be stimulated without innovation
Unlike the fierce competition in soft drinks in China, hot drinks was flat as it was without innovation in both product R&D and marketing methods. Hot drinks is expected to retain unexciting but healthy growth over the forecast period if no leading manufacturer will try to upset the balance in the category. Especially in other hot drinks, trade sources indicate that there are no imminent innovative product launches and leading manufacturers are also not placing high emphasis on product marketing and promotion. As a result, without any stimulation hot drinks is expected to gradually head to saturation over the forecast period.
Table of contents
HOT DRINKS IN CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Healthy growth in hot drinks in economic recession
Melamine event drives hot drinks
Consolidated coffee versus fragmented tea and other hot drinks
Supermarkets/hypermarkets and chained specialists increase in importance
Hot drinks will not be stimulated without innovation
KEY TRENDS AND DEVELOPMENTS
Demographic changes spur sales of hot drinks
Melamine event benefits hot drinks
Healthy drinking trend influences consumer decision
Hot drinks retains healthy growth in economic recession
Convenient packaging attracts consumers
TERRITORY KEY TRENDS AND DEVELOPMENTS
East China
Mid China
North and Northeast China
Northwest China
South China
Southwest China
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Retail Sales of Hot Drinks by Region: Volume 2003-2008
Table 12 Retail Sales of Hot Drinks by Region: Value 2003-2008
Table 13 Retail Sales of Hot Drinks by Region: % Volume Growth 2003-2008
Table 14 Retail Sales of Hot Drinks by Region: % Value Growth 2003-2008
Table 15 Foodservice Sales of Hot Drinks by Region: Horecavolume1000 2003-2008
Table 16 Foodservice Sales of Hot Drinks by Region: % Volume Growth 2003-2008
Table 17 Total Sales of Hot Drinks by Region: Total Volume 2003-2008
Table 18 Total Sales of Hot Drinks by Region: % Total Volume Growth 2003-2008
Table 19 Hot Drinks Company Shares by Value 2004-2008
Table 20 Hot Drinks Brand Shares by Value 2005-2008
Table 21 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 22 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 23 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 24 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 25 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 26 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 27 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 28 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 29 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 30 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 31 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 32 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
Table 33 Forecast Retail Sales of Hot Drinks by Region: Volume 2008-2013
Table 34 Forecast Retail Sales of Hot Drinks by Region: Value 2008-2013
Table 35 Forecast Retail Sales of Hot Drinks by Region: % Volume Growth 2008-2013
Table 36 Forecast Retail Sales of Hot Drinks by Region: % Value Growth 2008-2013
Table 37 Forecast Foodservice Sales of Hot Drinks by Region: Horecavolume1000 2008-2013
Table 38 Forecast Foodservice Sales of Hot Drinks by Region: % Volume Growth 2008-2013
Table 39 Forecast Total Sales of Hot Drinks by Region: Total Volume 2008-2013
Table 40 Forecast Total Sales of Hot Drinks by Region: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHINA
CHANGZHOU SUPER COFFEE BEVERAGE CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Changzhou Super Coffee Beverage Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Changzhou Super Coffee Beverage Co Ltd: Competitive Position 2008
GUANGDONG YASHILI FOOD CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Guangdong Yashili Food Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Guangdong Yashili Food Co Ltd: Competitive Position 2008
GUANGZHOU KRAFT FOOD CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Guangzhou Kraft Food Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Guangdong Kraft Food Co Ltd: Competitive Position 2008
NESTLé (CHINA) LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Nestlé (China) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Nestlé (China) Ltd: Competitive Position 2008
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
COMPETITIVE POSITIONING
Summary 11 Shanghai Associated British Foods & Beverage Co Ltd: Competitive Position 2008
TENFU GROUP - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Tenfu Group: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Tenfu Group: Competitive Position 2008
VV GROUP - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 VV Group: Key Facts
Summary 15 VV Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 VV Group: Competitive Position 2008
ZHEJIANG XIANGPIAOPIAO CO LTD - HOT DRINKS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Zhejiang Xiangpiaopiao Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Zhejiang Xiangpiaopiao Co Ltd: Competitive Position 2008
COFFEE IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Coffee Machine Sales: 2002-2007
Table 42 Instant Coffee by Speciality Type 2004-2008
Table 43 Retail Sales of Coffee by Type: Volume 2003-2008
Table 44 Retail Sales of Coffee by Type: Value 2003-2008
Table 45 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 46 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 47 Standard Vs Coffee Pods 2004-2008
Table 48 Coffee Company Shares 2004-2008
Table 49 Coffee Brand Shares 2005-2008
Table 50 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 51 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 52 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 53 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 54 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 55 Other Tea by Type: % Off-trade Volume 2005-2008
Table 56 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 57 Retail Sales of Tea by Subsector: Value 2003-2008
Table 58 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 59 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 60 Tea Company Shares 2004-2008
Table 61 Tea Brand Shares 2005-2008
Table 62 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 63 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 64 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 65 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 66 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 67 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 68 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 69 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 70 Other Hot Drinks Company Shares 2004-2008
Table 71 Other Hot Drinks Brand Shares 2005-2008
Table 72 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 73 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 74 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 75 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013