Growth Potential For Nut Milk In China Tea Shop Market
Monday, February 25th, 2019 | 729 Views
According to research from market intelligence agency Mintel, “Chinese consumers love their tea shops and it seems that no shopping trip is complete without a visit. But while the nation still has an insatiable appetite for tea shops, growth in the sector is set to slow.”
The value and volume of the tea shop market in China has seen incredible growth over the past few years. At its peak, the total retail value of the market was RMB48.5 billion in 2018 as the growth of the market hit 14 percent from 2017 to 2018. Furthermore, volume of the market experienced a surge of four percent, reaching an estimated 1,293 million litres in 2018. However, according to Mintel, the tea shop market will experience a steady but slower growth in the following years.
“China’s tea shop market experienced tremendous growth in retail value in the last five years and reached a peak in 2018, largely due to an upgrade of ingredients and increase in material costs which caused the selling price of tea shop drinks to treble. However, slower growth is expected for the market in the next five years as there is little space for further unit price growth and an increasingly competitive marketplace. While the market is set to slow down, the tea shops category still has potential to grow further, with more opportunities for new entrants,” said Belle Wang, Food and Drink Analyst at Mintel China Reports.
Although popular tea shop drinks currently include milk tea, fresh fruit drinks and milk drinks, Mintel spots strong potential for nut milk drinks. According to Mintel, “While still at a nascent stage in China, nut milk drinks are set to grow in popularity based on factors like taste and nutrition. Using nut milk instead of animal milk in milk tea or other milk-based drinks could bring more health benefits and develop new tastes at the same time.”
The research company added that female consumers are more willing and likely to queue for nut milk drinks, hence, “tea shop brands can take advantage of this opportunity by introducing nut milk drink options with female-oriented claims, like highlighting antioxidant and anti-ageing properties.”