Retail Express
The growth of hot drinks market in China
2021-12-07
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The Chinese hot drinks market is projected to grow at a compound annual growth rate (CAGR) of 9.4 percent from RMB 212.5 billion (US$30.8 billion) in 2020 to RMB 332.4 billion (US$48.9 billion) in 2025. The market is primarily driven by growth in the hot tea category, says GlobalData, a data and analytics company.
GlobalData’s report, China Hot Drinks – Market Assessment and Forecasts to 2025, reveals that the hot tea category is forecasted to register the fastest value CAGR of 9.7 percent during 2020-2025. The category is followed by hot coffee, which is projected to record a CAGR of 7.7 percent during the same period.
Vishakha Rastogi, Consumer Analyst at GlobalData, said, “The Chinese hot drinks market has been predominantly a tea market, mainly preferred for its health benefits. However, hot coffee (as a category) is poised for growth despite the industry being hit by the COVID-19 crisis as coffee is preferred by many to kickstart their day.”
Source: Global Data
Convenience stores was the leading distribution channel in the Chinese hot drinks market in 2020, followed by hypermarkets & supermarkets and e-retailers.
The per capita expenditure (PCE) of hot drinks in China increased from US$16.8 in 2015 to US$21.9 in 2020, which was higher than the regional level (US$20.4) but lower when compared to the global level (US$31.8). Furthermore, the per capita expenditure of hot drinks in China is expected to increase and reach US$34.5 by 2025.
Nestlé, China Tea Co. Ltd and Zhejiang Xiangpiaopiao Co. Ltd were the top three companies in the Chinese hot drinks market by value in 2020 while Nescafé and Xiangpiaopiao were the leading brands.
Rastogi concluded, “The overall Chinese hot drinks market will see stable growth in the coming years as consumers will continue to consume hot drinks and seek products with innovative features. Additionally, consumers shifting to the local companies is likely to hamper the sales of the large players.”
Source: retailinasia.com
