Naturally Healthy Beverages in Hong Kong, China

PROSPECTS

Continuous demand for NH healthy beverages

With the rising health consciousness among local consumers, they are increasingly looking to avoid consuming unhealthy substances in their food and beverages. For example, consumers are actively avoiding sweeteners as well as shifting away from sugary drinks to reduced-sugar or zero-sugar drinks, as can be seen in the move from juice drinks to coconut water.

NH bottled water still growing despite its already large size

NH bottled water, which is the biggest product area in NH beverages, continues gaining traction among consumers because of its healthy nature. NH natural mineral water performed well in 2019 and is expected to continue doing so over the forecast period.

NH fruit/herbal tea continues growing on the back of the HW trend and new product launches

In NH hot drinks, NH fruit/herbal tea continued to record dynamic value growth in 2019, driven by the health and wellness trend and the new products and flavours being launched to constantly stimulate consumer interest. Players continuously leverage marketing and branding to promote the concept that fruit/herbal tea can act as an aid to relaxation, such as Twinings’ frequent use of social media to communicate this message to consumers.

COMPETITIVE LANDSCAPE

Leader Swire Coca-Cola Hong Kong continues growing thanks to Authentic Tea House

Leading NH beverages player Swire Coca-Cola Hong Kong continued to record value sales growth in 2019, largely on the back of another good year for its Authentic Tea House in NH RTD tea. The company’s wide distribution and strong marketing campaigns focusing on the NH positioning of the Authentic Tea House brand is helping it thrive in NH RTD tea.

Kagome seeing strong growth in NH fruit/vegetable juice

Japanese company Kagome Co Ltd has continuously recorded some of the best growth rates in NH fruit/vegetable juice in recent years. The health and wellness trend means that consumers now closely consider the functionalities of products when choosing which juice brand to buy, which is helping drive demand for NH products.

International brands are popular with younger consumers in NH tea

In NH tea, international brands with a wide range of product offerings and varieties are very popular among younger generations. Brands like Taylors and Twinings with offerings like Darjeeling, Green Tea and Earl Grey are enjoying continuously growing popularity in Hong Kong.

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