Health and convenience boosting China’s teabag market


New research from Mintel shows that China's teabag market has achieved a compound annual growth rate (CAGR) of 28.8% during 2015-2020 and becoming the largest segment of the tea beverage category, with sales increasing 81.1%. Findings also indicate that the market will continue to grow substantially at a CAGR of 9.8% over the next five years.
Jenny Li, category director, Mintel Food and Drink, said:
“The rise in demand for tea due to increased time spent at home has attracted new players into the market. Coupled with consumers’ increased reliance on online shopping, new players can quickly penetrate the market by relying on China’s mature e-commerce model.”
When it comes to the benefits of tea beverages, Chinese urban consumers are most interested in stress relief (45%), followed by beauty and skincare (38%) and detoxification (34%). From a product perspective, 7.7% of tea products launched globally in 2020 claim to benefit from stress relief and sleep aid. According to Mintel’s Global New Products Database (GNPD), this rank is second among all claimed benefits.
Demand for tea is not likely to decrease in the post-pandemic era. Li said consumers would continue to look for stress relief and relaxation in their lives. This need coincides with the product proposition of teabags.
“More efficacious differentiation will also help the segment meet the growing consumer demand for physical and mental health,” she said. (Image from Unsplash)

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