What is the future market for the tea drink economy?

-- The following data and analysis are from the Prospect Industry Research Institute's China New Style Tea Drink Industry Market Outlook Forecast and Investment Strategy Planning Analysis Report

The ready-made tea drinks began to make their mark in 2010, and new-style ready-made tea drinks have been gradually emerging since 2015. The rise of new-style ready-made tea drinks since 2015, has entered the era of consumer upgrading 2.0. Ready-made tea drinks from the beginning of the net red products gradually sink for people's daily life consumer goods, the impact of the new crown epidemic, ready-made tea drinks offline sales by the impact of a larger, online channels gradually become the main sales channels, ready-made tea drinks industry has also entered the stage of digital development.

A panoramic view of the ready-made tea drinks industry chain

With the enhancement of China's consumer spending power, people's requirements for the taste of beverages continue to improve, the ready-made tea drinks compared to the traditional tea drinks taste better, the choice of a richer because of the favored by consumers. At the same time, people's health requirements for food enhancement to make the main more quality tea base and healthier ingredients of the new tea drinks in a short period of time to realize the bend, China's ready-made tea drinks market rapid outbreak.

The upstream link of ready-made tea drinks is the supply of raw materials, mainly including the production of tea drinks must be agricultural and sideline products, agricultural and sideline products, including fruits, tea, dairy products, animal cream, coconut, tapioca, etc.; ready-made tea drinks industry chain of the middle link of the design, production and packaging of tea drinks; industry chain of the downstream of the circulation of ready-made tea drinks is divided into the offline stores and online delivery of the two channels.

Previously, due to the ready-made tea drinks focus on quality and service quality characteristics of the tea drink brands will focus on the operation of offline stores and development, 2020 by the impact of the new crown epidemic, the online channel has become a new sales outbreak, relying on China's mature takeaway market and micro-malls, small programs and other emerging sales channels has become an important sales channel for ready-made tea drinks.

The development of ready-made tea drinks

1, ready-made tea drinks into the chain of tea drinks consumption upgrading 2.0 era

Prior to 2015, the rapid development of ready-made tea drinks, the birth of a number of national chain of brands, including happy lemon, COCO, a little bit of On the whole, before 2015, the chain development of ready-made tea drinks belonged to the period;

2015-2019, the rapid development of new tea drinks in the ready-made tea drinks, emphasizing the transformation from "ready-made" to "freshly made", typically characterized by the addition of fresh fruits, milk and milk powder to the drinks, and the addition of fresh fruit, milk and milk powder to the drinks. Drinks to add fresh fruit, dairy products, roasted fairy grass and other ingredients, pay attention to the value of the drink, good-looking and good to drink, this stage was born, including Xicha, Neshe's Tea, Lele Tea and other brands, belonging to the chain of tea drink consumption upgrade 1.0 period;

2020 years onwards, the further scale of the development of the tea drink market segments, the head of the tea drink brand began to layout the second and third tier cities, from product innovation to product, channel, brand **** vibration, including 7 minutes sweet, tea color, SEVENBUS, etc., ready-made tea drinks industry has since entered the chain tea drinks consumption upgrade 2.0 period.

2, the new style of ready-made tea drinks to cater to consumer upgrading Drive the development of ready-made tea drinks consumption

The new style of ready-made tea drinks compared to the traditional tea drinks made by the upgrading and innovation of the new style of ready-made tea drinks diversified functions, which led to the development of China's new style of tea drinks consumption. Its main performance in the product raw materials, beverage appearance and scene three aspects, and the scene can be divided into online and offline two scenes, the current offline store consumption scene for the main sales channels.

Three, after the epidemic era of ready-made tea drinks market supply and demand

1, under the influence of the epidemic, the expansion of ready-made tea drinks stores slowed down

The classification of ready-made tea drinks includes: tea drinks (pure tea, traditional milk tea, new tea drinks), coffee and other freshly squeezed juices, milk yogurt stores and so on. stores, and so on. According to data from Meituan Dianping, by the end of the third quarter of 2018, the number of ready-made tea drink stores in China reached 410,000, an increase of 74% in one year.

The rapid expansion of freshly made tea stores is mainly due to the substitution of conventional drinks by consumers and the demand of consumer groups for "healthy tea drinks". By the end of 2019, the number of ready-made tea beverage stores in China will be around 500,000 units.

Early 2020, due to the impact of the epidemic, foot traffic has plummeted, the number of tea drink stores closed store closures rose, and the expansion of new stores has also been affected. Checking through Goldmind, the number of ready-made tea drink stores in China was roughly around 480,000 at the end of June 2020, 20,000 fewer than at the beginning of the year.

According to survey data, in 2019, the average daily sales of milk tea stores in first-tier cities were around 100 cups, daily sales in second-tier cities were around 60 cups, and daily sales in other third-, fourth- and fifth-tier cities were around 40 cups. Assuming that the average daily sales of each ready-made tea drink store is 70 cups, China's ready-made tea drink consumption reached 12.78 billion cups in 2019.

In the first half of 2020, due to the impact of the epidemic, the flow of people is reduced, the daily sales of ready-made tea drink stores are forecast to decline, and the preliminary estimate is that the daily sales drop to 65 cups, and in the first half of 2020, China's ready-made tea drink consumption is at around 5.69 billion cups.

2, the epidemic catalyzed the new style of ready-made tea drinks into the digital development

2020 sudden new crown pneumonia epidemic so that the catering consumer industry was hit, "recovery" has become a new style of tea drinks business **** the same subject. Neshe's tea, Xi tea as the representative of the head of the brand quickly adjusted the strategy, relying on intensive plowing membership system, stationed in the e-commerce platform, new retail, small program and digital operation measures to revitalize the flow of new-style ready-made tea drinks into the digital stage of development.

According to the 2020 New Style Tea Drinks White Paper released by Nexue's Tea in conjunction with CBNData, 54% of consumers chose to buy new-style tea drinks through online channels, and the proportion of online orders for new-style tea drinks increased by nearly 20% compared with 2019. In addition to shortening the waiting time in line, no-touch is the main reason why consumers choose to order online.

The "online migration" of users has also made new tea drink brands pay more attention to the refined operation of the membership, deepening the connection with consumers through pre-ordering, points malls, exclusive evaluation channels, etc., and plowing the membership system has become an important initiative to improve user stickiness and repurchase rate. "White paper" data show that as of November 2020, the number of members of Nachel's Tea and Xicha exceeded 30 million.

3, volume and price rise, China's ready-made tea drinks market size exceeded 100 billion

In recent years, China's consumption upgrade has brought about a rise in the volume and price of the ready-made tea drinks industry, and the market size of China's ready-made tea drinks has continued to grow rapidly in 2016-2019. 2019, China's ready-made tea drinks market size (including traditional milk tea, traditional tea drinks, new-style tea drinks, coffee, and other tea drinks) is expected to increase by 2020, and the market size of China's ready-made tea drinks market will continue to grow rapidly. drinks, new-style tea drinks, coffee ready-to-drink, other fresh-squeezed juices, fresh milk yogurt, etc.) reached 140.5 billion yuan. in the first half of 2020, the market size of ready-to-drink tea drinks was about 62.6 billion yuan.

Four, ready-made tea drinks competition pattern

1, the head of the platform to differentiate competition in order to stand out

Currently, China's ready-made tea drinks industry does not have a monopoly industry leader appeared, the market competition is mainly based on the regional market competition. It is worth noting that the ready-made tea brands established since 2014, such as Hi-Tea and Neshe No Tea, have positioned themselves as "new-style tea drinks" to differentiate themselves from traditional milk tea stores.

Compared with traditional milk tea, the freshly brewed tea of new-style ready-to-drink tea drinks has more of a tea background, but compared with traditional tea drinks, milk and other ingredients have improved the taste of tea and diluted its attributes. When shopping for beverages, which are based on category alone and do not involve the brand of tea, the texture of the tea itself has a minimal impact on the taste.

By downplaying the attributes of tea, the new freshly made tea drinks have left behind the baggage of "tea tasting" in the historical culture, and are positioned more youthfully, becoming more in tune with the current trend of leisure consumption drinks.

In addition to product differentiation, in terms of marketing, the head of the brand has also pushed the boundaries of innovation, and continue to create heat and attract consumers through cross-border cooperation of brands to create a new Netflix products, and its cross-border cooperation with the brand side, including apparel, beauty, lifestyle, food, catering, media, entertainment, art and so on.

Hi tea, Nexue's tea and other new tea drink brands through differentiated competition, has stood out from the many ready-made tea drink brands, through the Baidu index query, in the past six months, the new tea drink in the hi tea, tea color, Nexue's tea, a little bit of the brand's attention is higher.

According to forward-looking statistics, as of June 2020, Xi tea has 521 stores across the country, Naixue's tea has 323 stores.

2. Directly-managed brands focus on quality polishing Franchised brands focus on market expansion

Currently, the operation of ready-made tea beverage brands is divided into two kinds of franchising and directly-managed, in which the directly-managed mode of ready-made tea beverage brands were established in the evening, focused on the number of stores in 2012, Xi tea, Naixue's Tea and Tea Yanyue ranked in the top three; the main product is more The main products are more innovative, with a high unit price, and focus on the quality control of the products.

Franchise mode ready-made tea drink brand was established earlier, part of the head of the brand has more than 1,000 stores, the headquarters is mainly concentrated in Shanghai, Hangzhou, Taiwan and other places, the product unit price is low, rapid expansion of the market to expand the scope of the brand is the brand to seize the key to the consumer's mind.

3, the new tea drink track capital heat continues to go high Nexue Xicha favored

According to Nexue's tea joint CBNData released the "2020 New Tea Drinks Whitepaper" shows that in 2020, more than $4 billion yuan into the new tea drink market. In addition to focusing on Naixue's tea and tea two head brands, the capital also see more waist brands, such as Gu Ming, seven points sweet.

Fifth, the development trend of ready-made tea drinks

1, capital-type brand "standing on the shoulders of giants" to achieve curved road overtaking

Capital-type brand of ready-made tea drinks to the new style of tea drinks brand is mainly

New-style ready-made tea drinks in the capital market under the pursuit, so that these brands do not have to worry about, focusing on the development of the business itself, resulting in new entrants such as Xicha, Lele tea and other new entrants to realize the phenomenon of "curved road to overtake".

2, self-built supply chain to become a brand moat

With the increasingly fierce competition in the ready-made tea industry, the brand competition has gradually extended from the product competition, supply chain advantages as well as to become a ready-made tea brand to build products and brand unique positioning of the moat. At present, the market heat of the higher brands have begun to increase supply chain management investment, which Naixue's tea and hi tea supply chain management ability is the strongest, which is also the two brands can stand out from the many brands in the key.

3, ready-made tea drinks market ushered in the "compensatory consumption"

By the impact of the new crown epidemic, the consumption of ready-made tea drinks declined, with the end of the epidemic, ready-made tea drinks market ushered in the "compensatory consumption".

With the end of the epidemic, the market for ready-made tea drinks has seen a "compensatory consumption", according to big data released by WeChat, which shows that consumers have started "compensatory consumption" since March, and the number of orders placed by small programs for tea drinks has increased by as much as 744%, much higher than that of snacks, desserts, and fast food, which has been recovering the fastest in the food and beverage industry.

4, sinking market future growth space

With the gradual upgrading of consumption sinking, China's ready-made tea drinks industry in the future in the second and third-tier cities will have a huge market space, according to the United States Mission data show that the third-tier and the following cities ready-made tea drinks store than two years ago increased by 138%, while the growth rate of first-tier cities only 59%, first-tier cities ready-made tea drinks store than two years ago. 59%, the number of ready-made tea drink stores in first-tier cities tends to be saturated, and there is more room for development in second- and third-tier cities.