The Chinese Hot Drinks Market: What Consumers Drink and Why?

Published: October 2013

Publisher: Canadean Ltd

Product ref: 185335

Pages: 64

Format: PDF

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Report description

Product Synopsis
This report provides the results for the Hot Drinks market in China from Canadean’s unique, highly detailed study of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as organized retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape
Why was the report written?
Marketers in the Hot Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Hot Drinks market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?
As consumer confidence increases with the economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008–2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. While the Chinese economy has maintained positive growth, consumer spending declined. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the Medium and Heavy frequency bands and the amount of Non-users should decrease.

What are the key drivers behind recent market changes?
Consumers’ uptake of products and the influence of consumer trends are fundamental causes of change in markets – making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits
Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Coffee, Tea, and Other Hot Drinks.

Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.

Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.

Unique retailer choice data at the product category level in organized sector, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues
The majority of Coffee consumption in China is Light or Medium, with Older Consumers recording the highest proportion of Heavy consumers, 21%.This is in contrast with Tea, where Heavy and Medium consumption is most common across all age groups.

Consumer segmentation analysis reveals that the Better Off wealth group accounts for approximately39% of the hot drinks market in value terms, despite accounting for 35% of the country’s population. This can be attributed to their greater consumption of premium brands.

Consumer analysis reveals that two of the busy lives groups at opposite ends of the spectrum account for approximately60% of hot drinks consumption in value terms. Suppliers may wish to target these groups with different sub-brands as aiming at both with the same product may leave the supplier stranded in a no man’s land.

Key Highlights
Global organized retailers operating in China such as Carrefour, Walmart, and Tesco have close to 69% volume share in China’s hot drinks market.

Brand analysis reveals that private labels have less than 12% volume penetration in the Coffee market in China, with private label penetration highest in the Other Hot Drinks category. Brands are strong in emerging economies such as China as they provide consumers with aspirational products, with brand images strongly related to affluence.

Key trends driving Chinese consumers’ choices of Hot Drinks include Personal space and time and Changing Life stages. These reflect growing urbanization and migration to cities, as Hot Drinks provide respite in work-heavy office and factory schedules, and urban consumers increasingly delay settling down, marriage, and childbirth.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 Consumer Trends
1.2.2 Consumer Groups
1.2.3 End Consumers
1.2.4 Volume Units and Aggregations
1.2.5 Exchange Rates
1.2.6 Population Profiles (for interpretation of tables and charts)
2 Methodology
2.1 Introduction
2.2 Initial data are based on a large scale, international program of online consumer surveys
2.3 Demographic groups tracking provides time series data
3 Consumer Segmentation, Group Value and Trend Influence
3.1 Cohort Groups and Hot Drinks Market Value
3.1.1 Age Groups
3.1.2 Gender Groups
3.1.3 Location Groups
3.1.4 Education Achieved Groups
3.1.5 Wealth Groups
3.1.6 Busy Lives Groups
3.2 Cohort Groups and Market Value by Category
3.2.1 Coffee
3.2.2 Other Hot Drinks
3.2.3 Tea
3.3 Behavioral Trends and Market Value
3.3.1 Coffee
3.3.2 Other Hot Drinks
3.3.3 Tea
4 Consumption Analysis
4.1 Consumption Frequencies by Age and Gender
4.1.1 Coffee
4.1.2 Other Hot Drinks
4.1.3 Tea
4.2 Consumer Profiles by Product Category
4.2.1 Coffee
4.2.2 Other Hot Drinks
4.2.3 Tea
5 Brand vs. Private Label Uptake
5.1 Brand vs. Private Label Consumer Penetration
5.1.1 By Category
5.2 Hot Drinks Brand Choice and Private Label Consumer Penetration
5.2.1 Coffee
5.2.2 Other Hot Drinks
5.2.3 Tea
6 The Share of Consumers Influenced by Trends
6.1 Trend Drivers of Consumers' Product Choices
6.1.1 Overall Hot Drinks
6.1.2 Coffee
6.1.3 Other Hot Drinks
6.1.4 Tea
7 Consumption Impact: Market Valuation
7.1 Hot Drinks Value Impact of Consumer Consumption Behavior
7.1.1 Market Value by Category
7.1.2 Market Volume by Category
7.2 Hot Drinks Value Analysis by Category
7.2.1 Market Value by Category
7.2.2 Expenditure per Capita by Category
7.2.3 Expenditure per Household by Category
7.3 Hot Drinks Volume Impact of Consumer Behavior Trends
7.3.1 Market Volume by Category
7.3.2 Consumption per Capita by Category
7.3.3 Consumption Per Household by Category
8 Retailer Choice and Category Share of Organized Retail
8.1 Retailer Volume Share by Category of Organized Retail
8.1.1 Retail Share by Volume – Coffee of Organized Retail
8.2 Retailer Volume Share by Category of Organized Retail
8.2.1 Retail Share by Volume – Coffee of Organized Retail
8.2.2 Retail Share by Volume - Other Hot Drinks of Organized Retail
8.2.3 Retail Share by Volume – Tea of Organized Retail
8.3 Profiles of End-Consumers of Hot Drinks, by Retailer Used
8.3.1 A-Best Supermarket Co., Ltd
8.3.2 Carrefour China
8.3.3 Dashang Group
8.3.4 Metro Cash & Carry
8.3.5 New Cooperation Joint-stock trade chain CO., Ltd.
8.3.6 Tesco China
8.3.7 Trust Mart
8.3.8 Wal-Mart Super center, China
8.3.9 Wuhan Zhongbai Group Co., Ltd.
8.3.10 Wumart Stores. Group
8.3.11 Other
9 Appendix
9.1 About Canadean
9.2 Disclaimer

List of Tables
Table 1: Volume Units for the Hot Drinks Market
Table 2: Foreign Exchange Rate - CNY vs. USD
Table 3: China Survey Respondent profile (weighted), 2012
Table 4: China Hot Drinks Value Share (%), by Age Groups, 2012
Table 5: China Hot Drinks Value Share (%), by Gender, 2012
Table 6: China Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Table 7: China Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Table 8: China Hot Drinks Value Share (%) by Wealth Groups, 2012
Table 9: China Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Table 10: China Coffee Consumer Group Share (% market value), 2012
Table 11: China Other Hot Drinks Consumer Group Share (% market value), 2012
Table 12: China Tea Consumer Group Share (% market value), 2012
Table 13: China Total Coffee Value (Yuan Renminbi millions) and Value Share Influenced by Behavioral Trends, 2012
Table 14: China Total Other Hot Drinks Value (Yuan Renminbi millions) and Value Share Influenced by Behavioral Trends, 2012
Table 15: China Total Tea Value (Yuan Renminbi millions) and Value Share Influenced by Behavioral Trends, 2012
Table 16: China Coffee Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 17: China Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 18: China Other Hot Drinks Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 19: China Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 20: China Tea Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 21: China Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 22: China Coffee Consumer Profiles (% consumers by sub-group), 2012
Table 23: China Other Hot Drinks Consumer Profiles (% consumers by sub-group), 2012
Table 24: China Tea Consumer Profiles (% consumers by sub-group), 2012
Table 25: China Hot Drinks Private Label Consumer Penetration (% Consumers Using), by Category, 2012
Table 26: China Coffee Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 27: China Other Hot Drinks Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 28: China Tea Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 29: China Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 30: China Coffee: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 31: China Other Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 32: China Tea: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 33: China Hot Drinks Market Value (Yuan Renminbi million), by Category, 2012
Table 34: China Hot Drinks Market Value (US$ million), by Category, 2012
Table 35: China Hot Drinks Market Volume by Category, 2012
Table 36: China Hot Drinks Market Value (US$ million), by Category, 2012
Table 37: China Hot Drinks Expenditure Per Capita (Yuan Renminbi), by Category, 2012
Table 38: China Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Table 39: China Hot Drinks Expenditure Per Household (Yuan Renminbi), by Category
Table 40: China Hot Drinks Expenditure Per Household (US$), by Category
Table 41: China Hot Drinks Market Volume (Ltr m) by Category, 2012
Table 42: China Hot Drinks Consumption Per Capita (Ltr ) by Category, 2012
Table 43: China Hot Drinks Consumption Per Household (Ltr m)by Category, 2012
Table 44: China Coffee Survey-tracked Retailer Shares of Organized Retail by Volume (Kg m), 2012
Table 45: China Coffee Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012
Table 46: China Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012
Table 47: China Tea Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012
Table 48: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From A-Best Supermarket Co., Ltd (% by Subgroup, as tracked by the Survey), 2012
Table 49: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Carrefour China (% by Subgroup, as tracked by the Survey), 2012
Table 50: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Dashang Group (% by Subgroup, as tracked by the Survey), 2012
Table 51: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Metro Cash & Carry (% by Subgroup, as tracked by the Survey), 2012
Table 52: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From New Cooperation Joint-stock trade chain CO., Ltd. (% by Subgroup, as tracked by the Survey), 2012
Table 53: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Tesco China (% by Subgroup, as tracked by the Survey), 2012
Table 54: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Trust Mart (% by Subgroup, as tracked by the Survey), 2012
Table 55: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Wal-Mart Super center, China (% by Subgroup, as tracked by the Survey), 2012
Table 56: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Wuhan Zhongbai Group Co., Ltd. (% by Subgroup, as tracked by the Survey), 2012
Table 57: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Wumart Stores. Group (% by Subgroup, as tracked by the Survey), 2012
Table 58: China: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Other (% by Subgroup, as tracked by the Survey), 2012

List of Figures
Figure 1: Consumer Trends Report Methodology
Figure 2: China Hot Drinks Value Share (%), by Age Groups, 2012
Figure 3: China Hot Drinks Value Share (%), by Gender, 2012
Figure 4: China Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Figure 5: China Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Figure 6: China Hot Drinks Value Share (%) by Wealth Groups, 2012
Figure 7: China Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Figure 8: China Coffee Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 9: China Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 10: China Other Hot Drinks Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 11: China Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 12: China Tea Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 13: China Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 14: China Hot Drinks Market Value (US$ million), by Category, 2012
Figure 15: China Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Figure 16: China Hot Drinks Expenditure Per Household (US$), by Category
Figure 17: China Coffee Survey-tracked Retailer Shares of Organized Retail by Volume (Kg m), 2012
Figure 18: China Coffee Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012
Figure 19: China Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012
Figure 20: China Tea Survey-tracked Retailer Shares by Volume (Kg m) of Organized Retail, 2012

Price: $ 3995.00

Related research categories

By sector: Hot drinks, General drinks

By market: China (in Asia), China (in BRICM)