RTD Tea in Japan

PROSPECTS

RTD black tea building on tapioca milk tea boom

The boom in tapioca milk tea in foodservice has created potential for the development of RTD black tea. Looking to take advantage of this opportunity, several companies launched new RTD black tea products in 2019.

Health and hydration boost mugicha’s performance

Having seen off-trade volumes rise annually throughout the review period, mugicha RTD tea saw its most dynamic performance in 2019. With its rich mineral content and perceived capacity to offer caffeine-free hydration, mugicha is proving popular with a broad consumer base, ranging from children to elderly consumers.

Consumers shift from FOSHU to FFC

While rising health-consciousness continues to be a key influence on demand in RTD tea, the end of the review period saw consumers shift from FOSHU (Foods for Specified Health Uses) to FFC (Foods with Function Claims). FFC products are subject to a less stringent process than FOSHU products and are generally less expensive, but are still considered to provide worthwhile health benefits.

COMPETITIVE LANDSCAPE

ITO EN Ltd successfully targets consumer interest in less sweet products

ITO EN Ltd remained the largest player in RTD tea in 2019. The company’s hojicha latte has been a notable hit since its launch in 2016.

Suntory extending brands from other categories into RTD tea

Suntory Beverage & Food, the third largest player in RTD tea, is looking to gain ground on ITO EN and Coca-Cola (Japan) by extending established soft drinks brands from other categories into RTD tea. In April 2019, the company launched an RTD green tea under Tennensui, the largest soft drinks brand in Japan thanks to its prominence in bottled water.

Coca-Cola’s new tea benefits from use of natural ingredients

Coca-Cola (Japan)’s Kocha Kaden Craftea has met with success despite the non-sugar trend. Launched in 2018, Kocha Kaden Craftea, which contains as much as 9% fruit juice, has proven popular amongst female consumers, in particular.

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