RTD Tea in Japan

PROSPECTS

Compatible with prevailing trends

RTD tea is forecast to be one of the fastest-growing areas of soft drinks over 2018-2023, with the category’s expansion being driven by its compatibility with the two key factors currently shaping consumer demand – convenience and health. Japan has a long and extremely well-established tradition of tea consumption, which, as lifestyles become ever busier, provides a solid platform for the development of convenient, portable ready-to-drink products.

Mugicha benefits from health-conscious demand

While its rate of expansion slowed towards the end of the review period, mugicha RTD tea continued to see significant growth in 2018. 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.

Shifting distribution patterns

Convenience stores accounted for a growing proportion of RTD tea volumes year-on-year throughout the review period, as impulse-orientated demand migrated to the channel from vending. The move away from vending led to supermarkets overtaking vending to become the largest distribution channel for RTD tea in the latter part of the review period.

COMPETITIVE LANDSCAPE

ITO EN retains lead

ITO EN remained the leading player in RTD tea in both volume and value terms in 2018 as it continued to benefit from the healthy image of its green tea brand, Oi Ocha, and ongoing efforts to further develop its offer through introductions such as hojicha, a roasted green tea. Innovation helped ITO EN to increase its share of RTD value sales in the final year of the review period even as it saw an ongoing decline in its volume share.

Suntory Beverage & Food expands strongly

Suntory Beverage & Food Ltd saw the fastest volume growth amongst the major players in RTD tea in 2018, with the company gaining share in both volume and value terms during the year. The company’s expansion was driven primarily by the dynamism of its Green Dakara brand, which has been extended into RTD tea from sports drinks.

Smaller players see growth

While RTD tea displays a significant degree of consolidation, with the top four players jointly accounting for 86% of volumes and 85% of value, the end of the review period saw a notable increase in the sales generated by smaller players that did not register individual shares. The significant growth potential of the category, in contrast to other areas of soft drinks, and its compatibility with the health and wellness trend are attracting a growing number of companies.

Files are delivered directly into your account within a few minutes of purchase.