Commodity Innovation Series - New Beverage Products In China

April 2017


Contents


  • United States dollar (US$)

Executive summary

  • Globally there were 14, 872 beverage products introduced between January 2006 to December 2016, with 40% of the new products launches occurring within the hot beverages, juice drinks, and alcoholic beverages categories.
  • The companies to launch the most beverage products were Coca-Cola, PepsiCo, and Dingjin Food. Coca-Cola launched 291 beverage products, 88% of which were entirely new introductions, range and variety extension.
  • During the review period, the use of oats and barley in beverage products surged, with over half of the new occurring between 2013 and 2016.
  • The top claims for beverage products launched in China commonly had health and convenience related claims such as no additives/preservatives, low/no reduced sugar, and time/speed.

Introduction

According to Mintel, from January 2006 to December 2016, there were 14,872 beverage products launched in China. Of the total products launched 50% were new, while 30% were new variety/range extension, and 20% were new packaging, new formulation, and relaunches.

In figure 1, you can see growth in beverage product launches in China during the 10 year review period. The most product launches occurred in 2016 with a total of 1,781, most of which were entirely new product introductions.

Beverage products launched in China, from January 2006 to December 2016

Beverage products launches: Description of this image follows.
Description
Beverage products launched in China, from January 2006 to December 2016
Year Number of products launched
2006 942
2007 1,355
2008 1,037
2009 915
2010 968
2011 1,394
2012 1,317
2013 1,741
2014 1,660
2015 1,762
2016 1,781
Source: Mintel 2017.

Product categories

The product categories to have the most beverage launches, were hot beverages, juice drinks, alcoholic beverages, other beverages (this includes beverage concentrates/mixes, nutritional, and meal replacement drinks), and ready-to-drinks (RTD).

Hot beverages

  • 4,310 new hot beverage products were launched in China during the review period.
  • Tea was the leading sub-category with a total of 3,120 beverage launches which accounted for 72% of the hot beverage category.
  • Malt, other hot beverages, and coffee accounted for 27.6% of the hot beverage category.

Juice drinks

  • 4,247 juice drinks were launched during the review period.
  • Fruit/flavoured still drinks lead the category with 2,420 product launches, thus making up over 50% of the juice categorie.
  • Nectars and juice only made up 43% of the category.

Alcoholic beverages

  • 1,520 alcoholic beverages were launched during the review period.
  • The beer sub-category saw the most significant launches with 804 product introductions.
  • Flavoured alcoholic beverages, other spirits, and fortified and other wines made up 37% of the product launches in the category.

Other beverages

  • 1,238 other beverages were launched during the review period.
  • Meal replacements and other drinks saw the most launches and accounted for 48% of the categories launches with 657 product introduction.
  • Beverage mixes and concentrates combined made up 52% of the category of launches.

Ready-to-drinks (RTD)

  • 1,238 RTD products were launched during the 10 year review period.
  • Most of the product launched came from RTD ice tea with 1,046 launches.
  • RTD iced coffee launches only made up 16% of the category launches.

Water

  • 999 water products were launched during the review period.
  • Flavoured water only accounted for a slight portion of the category with 186 launches in the 10 year review period.

Carbonated soft drinks

  • 755 carbonated products were launched in the review period.
  • On average there were 69 carbonated product launches peryear throughout the review period. However, 2015 saw significant increase in number of launches with a total 100 products occurring that year.

Sports and energy drinks

  • 444 sports and enegery drinks launched throughout the review period.
  • Energy drinks saw a slight more in product launches with a total of 238 while sports drinks saw 206.
  • Over the review period, the category saw significant increase in launches from 19 product launches in 2006 to 92 in 2015.
Top beverage products launched categories and their top sub-categories in China, from January 2006 to December 2016.
Category Sub-Category Number of products
Hot beverages Tea 3,120
Hot beverages Malt and other hot beverages 695
Hot beverages Coffee 495
Juice drinks Fruit/flavoured still drinks 2,420
Juice drinks Nectars 1,210
Juice drinks Juice 617
Alcoholic beverages Beer 804
Alcoholic beverages Flavoured alcoholic beverages 255
Alcoholic beverages Other spirits 195
Other beverages Meal replacements & other drinks 657
Other beverages Beverage mixes 474
Other beverages Beverage concentrates 228
Rtds RTD (iced) tea 1,046
Rtds RTD (iced) coffee 192
Water Water 813
Water Flavoured water 186
Carbonated soft drinks Carbonated soft drinks 755
Sports & energy drinks Energy drinks 238
Sports & energy drinks Sports drinks 206
Source: Mintel, 2017.
Ready-to-drinks (Rtds)

Company and brands

In the review period, 100 companies across China launched beverage products. The companies to launch the most product were Coca-Cola, PepsiCo, and Dingjin Food. Coca-Cola launched 291 beverage products 88% of which were entirely new introductions, range and variety extensions. On average, Coca-Cola launched 26 beverage products per year throughout the review period, most of which occurred within the carbonated soft drinks, fruit flavoured still drinks, water, and RTD iced tea.

The second largest company to launch beverage drinks was PepsiCo with 214 product launches. Most of PepsiCo beverage products were relaunches based on new package innovation which made up 69% of the company's launches. The remaining launches were new products, variety and range extensions.

The third largest company was Dingjin Food, a domestic enterprise, with 166 product launches occurring in the review period. Over 38% of Dingjin Food were new product introductions while the other launches were re-launches based on package innovation. Most of the company's beverage products occurred in the RTDs (89) and juices drinks (68) categories.

Top companies and their top brands, from January 2006 to December 2016.

Top companies: Description of this image follows.
Description
Top companies and their top brands, from January 2006 to December 2016.
Company Number of products launched
Coca-Cola 291
PepsiCo 214
Dingjin Foods 166
Wahaha Group 151
Unif 149
Nestlé 144
Unilever 100
Wal-Mart 99
Tenwow Group 82
Yijiangnan Tea 73
Source: Mintel 2017
Top beverage products launched categories and their top companies in China, from January 2006 to December 2016.
Category Company Number of products
Hot beverages Nestlé 87
Hot beverages Unilever 79
Hot beverages Yijiangnan Tea 73
Juice drinks Coca-Cola 77
Juice drinks Dingjin Foods 68
Juice drinks Unif 58
Alcoholic beverages Tsingtao Brewery 60
Alcoholic beverages Budweiser Wuhan International Brewing 56
Alcoholic beverages China Resources Snow Breweries 50
Other beverages Kraft Foods 23
Other beverages Nestlé 22
Other beverages Chuang Kang Food & Beverage 19
Rtds Dingjin Foods 89
Rtds Unif 83
Rtds Tenwow Group 51
Water Coca-Cola 24
Water Wahaha Group 20
Water Qingdao Laoshan Spring Water 17
Carbonated soft drinks Coca-Cola 160
Carbonated soft drinks PepsiCo 146
Carbonated soft drinks Wahaha Group 24
Sports & energy drinks Robust Food & Beverage 28
Sports & energy drinks En-Snow Foods 21
Sports & energy drinks Jianlibao Group 16
Total products launched N/A 14,872
Source: Mintel, 2017.
Not applicable (N/A)
Ready-to-drinks (Rtds)

Product claims

The top product claims for beverage products launched in China commonly had health and convenience related claims such as no additives/preservatives, low/no reduced sugar, and time/speed. All of which is in line with the growing consumer trends for healthy and quickly prepared food and drink items.

Top product claims

Claims: Description of this image follows.
Description
Top product claims
Claim % of Products
No additives/preservatives 42
Low/no/reduced sugar 21
Time/speed 14
Functional 12
Vitamin/mineral fortified 11
Source: Mintel, 2017.
Top categories and their top claims in China, from January 2006 to December 2016.
Category Claim Number of products
Hot beverages Time/speed 622
Hot beverages No additives/preservatives 390
Hot beverages Ease of use 225
Juice drinks No additives/preservatives 1,236
Juice drinks Low/no/reduced sugar 414
Juice drinks Functional 161
Alcoholic beverages Premium 113
Alcoholic beverages Social media 52
Alcoholic beverages Ethical - environmentally friendly product 45
Other beverages No additives/preservatives 205
Other beverages Low/no/reduced sugar 153
Other beverages Functional 125
Rtds No additives/preservatives 234
Rtds Low/no/reduced sugar 187
Rtds Social media 66
Water Low/no/reduced sugar 88
Water Vitamin/Mineral Fortified 50
Water Ethical - environmentally friendly package 35
Carbonated soft drinks Low/no/reduced calorie 59
Carbonated soft drinks Low/no/reduced sugar 58
Carbonated soft drinks Event merchandising 49
Sports & energy drinks Vitamin/mineral fortified 138
Sports & energy drinks Functional 83
Sports & energy drinks No additives/preservatives 34
Source: Mintel, 2017.
Ready-to-drinks (Rtds)

Oats and barley beverages

During the 10 year review period, 627 beverage products containing oats and barleys were launched in China. Most of the beverage products were launched in the hot beverages, alcoholic beverages, and other beverages categories (e.g. meal replacements, beverage concentrates, etc.). Over half of the beverage launches were new product introductions while 18% were new packaging and relaunches. The companies to launch the most beverage products containing oats and barley were AB Food & Beverages, Nestlé, and Shanghai Yinglian Foods & Beverage.

Oats and barley beverage products launched in China, from January 2006 to December 2016

Oats and barley: Description of this image follows.
Description
Oats and barley beverage products launched in China, from January 2006 to December 2016
Year Number of products launched
2006 39
2007 40
2008 29
2009 25
2010 25
2011 41
2012 47
2013 98
2014 83
2015 78
2016 122
Source: Mintel, 2017.
Top oats and barley beverage product category and their sub-categories from January 2006 to December 2016
Category Sub-Category Number of products
Hot beverages Malt & other hot beverages 257
Hot beverages Tea 83
Hot beverages Coffee 13
Alcoholic beverages Beer 110
Alcoholic beverages Other spirits 29
Alcoholic beverages Liqueur 6
Alcoholic beverages Flavoured alcoholic beverages 5
Alcoholic beverages Vodka 5
Other beverages Meal replacements & other drinks 27
Other beverages Beverage concentrates 19
Other beverages Beverage mixes 15
Rtds Rtd (iced) tea 21
Rtds Rtd (iced) coffee 2
Juice drinks Fruit/flavoured still drinks 17
Juice drinks Nectars 3
Juice drinks Juice 1
Carbonated soft drinks Carbonated soft drinks 7
Sports & energy drinks Energy drinks 3
Total products launched N/A 627
Source:
Not applicable (N/A)
Top oats and barley beverage companies and their sub-categories from January 2006 to December 2016
Company Sub-Category Number of products
AB Food & Beverages Malt & other hot beverages 17
AB Food & Beverages Tea 1
AB Food & Beverages Beverage mixes 1
Nestlé Malt & other hot beverages 16
Nestlé Coffee 1
Shanghai Yinglian Foods & Beverage Malt & other hot beverages 11
Guangdong Black Cow Foods Industry Co Malt & other hot beverages 8
Guangdong Black Cow Foods Industry Co Tea 1
Diageo Liqueur 4
Diageo Vodka 2
Diageo Beer 1
Huang He Well-Brew Beer Beer 6
Huang He Well-Brew Beer Carbonated soft drinks 1
Mayushan Foods Malt & other hot beverages 7
Shantou Aosida Foods Malt & other hot beverages 5
Shantou Aosida Foods Coffee 2
Budweiser Wuhan International Brewing Beer 6
Harboes Bryggeri Beer 6
Source: Mintel, 2017.

New product examples

  • Red Bean, Pearl Barley and Yam Powder
    • Record ID: 4513383
    • Company: Jinmofang Health Technology
    • Brand: Jinmofang
    • Category: Hot Beverages
    • Sub-Category: Malt & Other Hot Beverages
    • Country: China
    • Country of Manufacture: China
    • Import Status: Not imported
    • Store Name: Up Market
    • Store Type: Supermarket
    • Store Address: Wuhan 430072
    • Date Published: December 2016
    • Product source: Shopper
    • Launch Type: New Product
    • Price in US Dollars: $ 17.10
    • Bar Code: 6959105504248
    • Product Description: Jinmofang Hong Dou Yi Mi Shan Yao Fen (Red Bean, Pearl Barley and Yam Powder) is QS certified. The handmade instant product retails in a 500g pack containing 20 x 25g units featuring the WeChat QR code.
  • Nutritious Compound Oatmeal
    • Record ID: 4325019
    • Company: Nestlé
    • Brand: Nestlé Nesvita
    • Category: Hot Beverages
    • Sub-Category: Malt & Other Hot Beverages
    • Country: China
    • Country of Manufacture: China
    • Import Status: Not imported
    • Store Name: WEI DUO LI
    • Store Type: Mass Merchandise/Hypermarket
    • Store Address: HUHEHAOTE 010000
    • Date Published: September 2016
    • Product source: Shopper
    • Launch Type: Relaunch
    • Price in US Dollars: $ 1.98
    • Bar Code: 6917878035802
    • Product Description: Nestlé Nesvita Yan Mai Ying Yang Fu He Mai Pian (Nutritious Compound Oatmeal) has been relaunched with a new formulation and a new packaging. It is made using whole wheat and imported oats from the United Kingdom, and said to be rich in dietary fibre. According to the manufacturer, dietary fibre helps regulate gastrointestinal tract function normally. This product can be prepared in about one minute and retails in a newly designed 250g pack containing 10 25g units and bearing the Weibo code.
  • Black Wheat Beer
    • Record ID: 4315579
    • Company: Brauerei Simon
    • Distributor: Jia Si Te Trading
    • Brand: Brauerei Simon
    • Category: Alcoholic Beverages
    • Sub-Category: Beer
    • Country: China
    • Store Name: Metro
    • Store Type: Mass Merchandise/Hypermarket
    • Store Address: Cheng Du 610000
    • Date Published: September 2016
    • Product source: Shopper
    • Launch Type: New Variety/Range Extension
    • Price in local currency: CNY93.80
    • Price in US Dollars: $ 14.06
    • Bar Code: 4001424001402
    • Product Description: Brauerei Simon Xiao Mai Hei Pi Jiu (Black Wheat Beer) is imported from Germany. This product retails in a pack containing six 500ml cans, and featuring a free beer glass.
  • Barley Tea
    • Record ID: 4087461
    • Company: Ming Feng Tea
    • Brand: Hongenyan Mingbo
    • Category: Hot Beverages
    • Sub-Category: Tea
    • Country: China
    • Country of Manufacture: China
    • Import Status: Not imported
    • Store Name: Carrefour
    • Store Type: Mass Merchandise/Hypermarket
    • Store Address: Shanghai 200063
    • Date Published: June 2016
    • Product source: Shopper
    • Launch Type: New Packaging
    • Price in US Dollars: $ 1.04
    • Bar Code: 6933591913333
    • Product Description: Hongenyan Mingbo Da Mai Cha (Barley Tea) has been repackaged. This product is now available in a newly designed 180g pack containing 30 tea bags.

For more information

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Resources

  • Mintel Global New Products Database (GNPD), 2017.

Commodity Innovation Series - New Beverage Products in China
Global Analysis Report
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