Naturally Healthy Beverages in Hong Kong, China

PROSPECTS

NH RTD tea set to benefit from historically sophisticated tea drinking culture

Most non-alcoholic drinks categories feature only very few naturally healthy products.

Affordable NH bottled water gaining traction

Bottled water has long had a premium image in Hong Kong and many local people have seen it as an unnecessary luxury. However, the emergence of tap water contamination scandals and a fall in the price of standard bottled water under private label and basic, low-cost brands during the review period created an entirely new consumer base for NH bottled water.

Premiumisation set to continue, to the benefit of high-priced international brands

NH natural mineral water performed well in 2018 and is expected to continue doing so over the forecast period. The category has traditionally had a premium, upmarket image and international brands continue to enter the category as many consumers are more prepared to place their trust in overseas brands when it comes to premium goods.

COMPETITIVE LANDSCAPE

Swire Coca-Cola defends its narrow lead with strong sales growth

2017 and 2018 saw Swire Coca-Cola take full advantage of the thirst of local consumers for novelty in NH RTD tea as its Authentic Tea House brand drove growth for the category-leading company. The company’s wide distribution and strong marketing campaigns focusing on the naturally healthy positioning of the Authentic Tea House brand ensured that the company saw off a strong challenge from rival brand Tao Ti by Telford International.

Telford International remains in second position

Despite further retail value share loss towards the end of the review period, Telford International retained its second leading position in naturally healthy beverages in 2017. The company’s strong position is driven by its Tao Ti brand in NH RTD green tea.

Exploration of wider range of NH other RTD tea helps reduce barriers to entry

Although chrysanthemum tea-based products remain the most popular in NH other RTD tea, other variants such as rooibos and oolong-based products are gaining the attention of consumers. This makes a change from the traditional reluctance of consumers to engage with new types of NH other RTD tea and strong local players such as Robiff International Co.

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