Wen 丨 Guan Tide New Consumption (ID: TideSight), author 丨 Wang Ton ton, Editor 丨 Du Zhong
2021 can be described as "water" deep and hot, sparkling water to take over carbonated drinks, plant oat milk instead of milk, soy milk, even boiled water has also ushered in a capital boom.
Health is an age-old topic. Low sugar, 0 sugar, low calorie swept the entire market, led by Yuanqi Forest, Master Kong, Nongfu Spring and other new and old brands entered the game strongly; plant milk jumped up; coffee from online to offline, opened a street battle...
Consumption upgrades have triggered a contest of water, players have entered a large number of games, tea, coffee, dairy products who can carry "water" a battle? Guanchao New Consumption (ID: TIdeSight) specially launched the "2021, National Tide Industry Ten Major Track Inventory" series of topics, this article summarizes the keywords of the water and beverage market in 2021 and the industry trend in 2022.
01, 2021, water drinking ten keywords
Keyword one: functional drinks
Different from functional drinks such as Red Bull and Dongpeng Special Drink, the addition of raw materials with beauty effects such as hyaluronic acid and collagen has created a new functional beverage market.
In January 2021, the National Health Commission officially approved hyaluronic acid as a new food raw material, Bloomage Bio immediately released the hyaluronic acid drink "Water Muscle Spring", Hankou No. 2 Factory, Lechun and other brands also launched hyaluronic acid soda, hyaluronic acid yogurt and other products, beauty concept and beverage integration.
Wu Wende, an analyst in the food and beverage industry at Tianfeng Securities, said that in the future, there will be oral liquids, capsules, tablets, punches containing hyaluronic acid in China, as well as snacks, beverages, candy, dairy products, alcohol and even pet food, etc. He predicts that the medium-term market size of food-grade hyaluronic acid terminal products in mainland China will be about 8.8 billion yuan in the future, and the final market size will be about 20.6 billion yuan.
Mengniu also aims at this market, and R&D engineer Shi Yudong also said that in the future, the company will increase its research and development efforts to organically combine hyaluronic acid and some functional ingredients to achieve the effect of 1+1>2. At the same time, the formula will be adjusted according to the specific needs of consumers.
However, there are still some challenges in the application of new food ingredients, and many consumers believe that the so-called "function" is an IQ tax. Therefore, new food raw materials still need to solve problems such as food supervision and safety in promoting the development of the food and beverage industry.
Key word two: cooked water
Selling water has always been a good business.
According to the data, the size of the mainland soft drink market in 2020 was 573.549 billion yuan, of which bottled water accounted for 37.64%, becoming the largest subdivision in the soft drink category.
The "202 China Food and Beverage Top Ten Innovation Trends" report shows that due to the impact of the epidemic, consumers will pay more attention to their own health and food safety, and are willing to choose foods and beverages that enhance their resistance. As a traditional healthy drinking water in China, boiling water has also sprung up in the market with strong health awareness.
The potential of the cooked water market is not small, and brands have long begun to lay out. In 2016, Jinmalang innovated and opened up a new cooked water track Liangbaikai, with its liangbaikai sales exceeding 2 billion in 2020; in 2019, Want Want first ventured into the bottled water business in the mainland and launched Want Want Liang Bai Kai; in April 2020, Master Kong also officially launched Master Kong to drink boiled water.
Gentle, safe, sweet is the selling point of cooked water, for Chinese, boiling water to drink rest assured, drinking more hot water has also become a cure for all diseases, so for boiling water, Chinese consumers have a deeper feeling.
According to the data, it is expected that the packaged drinking water will reach a scale of 337.1 billion yuan in 2024, with a compound annual growth rate of 10.8%, and there is still room for growth of 100 billion yuan. At present, the cooked water market is only three players, Jinmalang, Master Kang, and Wangwang, and no new brands have run out. However, there is still a chance for "cooked water" as a new market segment that Chinese like.
Hu Qingquan, director of the Safety Research Institute of Jinmalang Beverage Co., Ltd., once said: "At present, in China's bottled water market, the proportion of raw aquatic products is much greater than that of cooked aquatic products. In the next 1-3 years, the cooked water market is still in the construction period of the market and consumption base. ”
Keyword three: low-sugar zero card
The improvement of health awareness has made sugar enter the "blacklist" of the food and beverage industry, whether it is ingredient lists or slogans, many drinks are clearly marked with the words "0 sugar and low sugar".
Yuanqi Forest's sugar-free sparkling water has opened up the domestic "low-sugar zero calorie" beverage market, and also brought fire to "erythritol". According to the Research Report on Consumer Sugar Reduction Behavior and Attitudes, the production of sweeteners in 2019 has reached 209,000 tons, and more than 70% of consumers have recognized that sugar substitutes are healthier than sugar.
Under the "low sugar" heat, Pepsi Cola, Coca-Cola, Xi Tea, Nai Xue's tea, etc. have also successively launched "0 sugar 0 calorie" drinks, and soda, which has always been considered a "weight loss killer", has got rid of the title of "fat house water".
In 2021, the price of erythritol also began to rise rapidly, and in June, the production capacity of Dongxiao and Bowling Bao increased significantly, which alleviated the situation of short supply.
The "Healthy China Action (2019-2030)" clearly puts forward the action plan of "three minus three health" and lists "sugar reduction" as the focus of future national nutrition work. Overall, the low-sugar low-calorie beverage market can be expected in the future.
Keyword four: sparkling water
When it comes to low sugar and low calorie, it is naturally inseparable from sparkling water. Sparkling water has always been a hot drink, especially in recent years, with its fresh taste and diverse tastes, it has won a number of young people.
According to the "2021-2027 China Sparkling Water Industry Market Depth Analysis and Development Trend Analysis Report" released by Zhiyan Consulting, the market size of China's flavored sparkling water in 2018-2020 mainly contributed to Yuanqi Forest, and sales increased from 3.58 billion yuan to 5.81 billion yuan.
In 2021, with the new products of major manufacturers entering the field of flavored sparkling water, the industry is rapidly expanding, and it is expected that the overall scale of the sparkling water industry is expected to rise.
From 2020 onwards, the proportion of new sparkling water sales will exceed that of traditional sparkling water. Compared with high-end pricing traditional sparkling water such as Perrier Water and Saint-Perrineus, sugar-free sparkling water is now more able to meet the preferences of consumer groups.
The "2021 Yuanqi Forest Sparkling Water Consumption Insight Report" (hereinafter referred to as the "Report") released by Yuanqi Forest shows that the proportion of women in the population that purchases sparkling water in 2021 is as high as 70%, reflecting that female consumers pay more attention to the concept of health when choosing drinks.
From the perspective of the age group of bubble water buyers, the post-95 generation has grown into the absolute main force of bubble water consumption, accounting for nearly 50%. According to the data provided by the "Report", users under the age of 34 accounted for 72.99% of the total number of sparkling water consumers in 2021.
The predecessors of the beverage industry have also begun to "renew their old brands". Wang Laoji launched the "Baiyun Mountain" sparkling water, Wahaha also launched the angry sparkling water, and the Internet celebrity brand Hankou No. 2 Factory launched hyaluronic acid sparkling water - "Ha Shui".
The new brand is a rapid breakthrough, Qingquan out of the mountains, Good Hope Water have raised funds, only Good Hope Water has completed three rounds of financing in one year, of which Huachuang Capital has continuously injected capital.
Yu Yue, an investor in Huachuang Capital, once said that beverages are a trillion-level industry, and condiments are one of the most valuable subdivisions, which can give birth to large brands with tens of billions of sales.
Keyword five: bottled water
Bottled water has gained new growth in 2021, and according to statistics, the market size of bottled water exceeded 200 billion yuan in 2021.
In 1982, bottled drinking water began to rise in the mainland, and pure water also officially entered the market. Since 1990, enterprises such as Yibao, Jingtian and Nongfu Spring have begun to produce natural water, and bottled water on the mainland has also begun to rise.
After more than 80 years of development, bottled water has become the largest subdivision of the soft drink industry in mainland China, and the market share of bottled water will account for 20.3% of the entire soft drink industry in mainland China in 2021.
The wind of bottled water also blew into the tea field. In June 2021, Heytea released a bottled drink with juice. Heytea said that cutting into the bottled beverage market is Heytea's "starting point with the youthfulness of tea and creating products and brands that can inspire the public for the world."
Also with "careful thinking" is Honey Snow Ice City. At the end of 2021, Tianyan check showed that Mi xue ice city registered a "snow king loves to drink water" appearance patent for drinking pure water. From the popular milk tea barrel to pre-packaged food, Michelle Ice City has always kept up with consumer demand, and this attempt to enter the bottled water market is also a trend.
Even Haoliyou has crossed bottled water, inheriting the consistent high quality of Haoliyou, and its drinking water brand "Lava Spring" is also positioned in the domestic high-end imported water market to meet the needs of users for high-quality water with a new attitude.
Overall, pure water has occupied half of the bottled water, and if you want to seize the minds of consumers, differentiation is a problem for brands to consider.
Keyword six: plant milk
In May 2021, Oatly, the "first share of oat milk", landed on nasdaq, and the intraday stock price rose by nearly 34%, and the market value surpassed the "first stock of plant meat" Beyond Meat.
The plant-based milk market is on the verge of erupting, triggering a contest between old and new brands. New brands have attracted much attention in the capital market, and old brands are facing a reshuffle under the impact.
In 2021, Daily Box received two rounds of financing in 4 months; at the same time, Plant Label also completed tens of millions of angel rounds in this year. Although the current domestic plant milk brand is still in the early stage, the capital has been unable to hold back, and has grabbed the beach, including many head VCs such as Matrix Partners, Zhen Fund, and Joy Capital.
Danone, Mengniu, Yili and other established dairy companies have also heard the wind and launched plant milk products, and even Nongfu Spring has also launched plant-based yogurt to enter the field of plant milk.
In addition, oat milk has also begun to cooperate with offline coffee shops to combine oat milk with coffee. For a time, oat lattes became popular and became the new favorite of the coffee industry.
The pattern of "South Coconut Tree, North Lulu, West Weiyi, East Silver Heron" was broken, and the plant milk that came out of nowhere hidden the trend of leading the industry to break the circle.
Keyword seven: boutique instant coffee
A cup of coffee in the morning becomes the key to starting the day for young people today.
Instant coffee has become a fervent demand among consumers. In 2021, with "boutique" as the selling point, domestic instant coffee has changed the usual form of "coffee powder + partner", using small packaging, freeze-dried powder, and coffee stock solution to give consumers a new user experience.
According to the incomplete statistics of Guanchao new consumption, in 2021, more than 20 financings of boutique instant coffee were completed, of which 6 were mainly boutique instant coffees, and Shicui completed 2 rounds of financing within 5 months.
In addition, Yongpu Coffee, Sumidagawa Coffee, Three and a Half Meals, And Encourage Clockwork, etc. have also received capital blessings. Boutique cafes have also launched instant coffee, and Manner, Tims, and algebraists have also started e-commerce business while selling coffee offline.
But just when brands and investors are thinking about what kind of products can win the market, more and more players are entering the boutique instant into a plagiarism circle.
In order to get out of the circle quickly, the coffees began to work on taste and packaging. Yongpu launched cocoa, coconut flavored black coffee liquid, and designed a saucer-shaped packaging, which is beautiful and interesting; Shicui innovated and introduced fruit flavors such as lychee oolong, strawberry, grape brandy and so on.
The taste and recipe of coffee are constantly being innovated and improved, and they are constantly seeking new changes in the consumption preferences of chinese people.
Keyword 8: cross-border
In recent years, water drinking companies have not "done well" to make water drinks and have begun to play cross-border.
Before Jiang Xiaobai launched the fruit cube joint milk tea, after the Yuanqi Forest invested in Guanyun liquor. New combinations such as wine + milk tea and wine + beverage continue to appear, not only in the brand of each other, but also in the product taste of bold innovation, to meet the curiosity of the current young people.
Functionality is also an important factor in attracting brands across borders, in addition to the above-mentioned hyaluronic acid drinks, Mengniu also launched the "taurine absorbable jelly". Mengniu's move also means the official start of the competition with the functional beverage brand.
Zhu Danpeng, an analyst in the Chinese food industry, pointed out that as the demographic dividend of the new generation continues to stack, their influence on the industrial side will become greater and greater. After the huge changes in the consumption thinking and consumption behavior of the new generation, the industry side has actually been exploring a problem, or trying some new category combinations, it is not difficult to find that "cross-border" has become an important means to attract the new generation of consumption, in the consumer side in the continuous force of the industrial end of the innovation and upgrading node, similar to wine + milk tea, wine + beverage and other product innovation and combination will be more in the future.
Not only the cross-border in taste, but also in the brand and category, beverage companies have also begun to form "CP", Nongfu Spring jointly named the Forbidden City, launched the Forbidden City "Emperor Bottle" drinking water; Wangzai and Nature Hall, clothing brand TYAKASHA jointly named to launch peripheral products.
Whether it is integration or co-branding, it can make the brand image positioning more diversified and younger, and reshape the fresh brand impression for consumers.
Keyword nine: ready-to-drink tea
Like the coffee market, the mainland ready-to-drink tea market is also facing innovation.
Ten years ago, a tea drink launched by Nongfu Spring, Oriental Leaves, was rated as the most difficult drink to drink. However, feng shui takes turns, and today, oriental leaves have become the new joy of many consumers with sugar-free tea.
From scorn to love, consumers' embrace of sugar-free tea began with a rise in health awareness. In the period of "low sugar for the whole people", the original sugar-free tea won the favor of consumers with refreshing and back-to-gan. Young people who once hated the dull and tasteless leaves of the East could not escape the law of "true incense".
Driven by oriental leaves, burning tea, Suntory, Itoen and other brands, there are more and more sugar-free teas on the shelves. In addition, the effect of tea drinks is also a big tool for "circle powder". For example, some tea drinks are brewed with corn whiskers, robin hemp, flax and other raw materials with blood pressure lowering function, or add enzymes to accelerate the speed of lipolysis and so on.
Today's tea drinks are increasingly developing towards quality. The trend of product upgrading is obvious, and explosive products have been born one after another. Various types of fruit teas and special flavor teas have also begun to become popular in the market.
The market outlet of new tea drinks has arrived. Whether it is the flavor of cold brew tea, the mix and match of "juice + tea" representing the tea π, or the new Meco juice tea, herbal tea, new sour, sweet and bitter tea, etc., they all reflect the "characteristics" of their products to the extreme. But to develop in China's ripe market for ready-to-drink tea, innovation in taste, technology and personalization is needed.
Keyword 10: Dairy Revolution
The dairy market, which has not changed for many years, ushered in a new round of "revolution" in 2021.
"Adopt a cow" in the consumer market and capital market development is in full swing, last April to adopt a cow to complete the A round of financing, six months later launched the A-share IPO; positioning the domestic high-end low-temperature yogurt brand, the main product 0 sugar, 0 additives and functional and other differentiated selling points "Jane Ai" continued to obtain large financing at the same time, but also stimulated the low-temperature yogurt market.
"Nowadays, the dairy industry has entered a period of competition in the whole industry chain of milk sources, products and channels. In the process of the birth of a good cup of milk, all the links of production, supply and marketing are accelerated with the help of digitalization. Sun Shijun, co-founder and CEO of Adopt a Cow, has said.
In addition, niche milk such as buffalo milk, yak milk, goat milk, and camel milk began to emerge in the consumer market. According to Data from Tmall Supermarket, as of January 13, 2022, Guangxi buffalo milk sold more than 400% during the New Year Festival, three times the growth rate of traditional milk, and this brand has become another upstart after Guangxi snail powder.
High nutritional value is the most direct feature of niche milk, there are advertisements that the nutritional value of buffalo milk is dozens of times higher than milk, camel milk is not only high in nutritional value, but also absorbs fast, reduces sugar and protects the liver, and enhances immunity.
Due to the "complete efficacy" and the "rarity of things is expensive", the price of niche milk has also doubled several times. But it has to be said that some advertisements exaggerate the efficacy of niche milk and create a concept of consumption pseudo-upgrade, even if the market has demand for niche milk, it still needs to be further strengthened by market supervision.
02, 2022, where is the "flow" of the water drinking market?
Drinks, a 24-hour demand, a trillion track that is "drunk", the long queue of milk tea shops, and the crowded shelves of supermarkets cannot show its full picture.
From the initial quenching of thirst, to the pursuit of taste, and then to the nutrition of later drinking, the health of drinking, the iteration speed of water drinking enterprises has been accelerating, thus bringing unlimited business opportunities. According to Euromoniton data, the water and drinking market reached 673.76 billion yuan in 2020, with a compound growth rate of 1.5% in 5 years, and the market size is expected to reach 720.83 billion yuan by 2025.
On the whole, the water and beverage industry will show the following five major trends in 2022:
1, bottled water is still just needed. From the characteristic point of view, the packaged water market is the largest, of which mineral water, pure water, natural water is the mainstay. The demand for coffee, functional drinks, carbonated drinks, tea drinks and other categories is stable, and it is easier to breed new products;
2. Health and wellness are hot. Low sugar zero calorie zero fat is already the trend, with the addition of new raw materials such as hyaluronic acid and collagen, drinks with health and health functions are becoming more and more popular;
3. Fierce battle between new and old brands. In addition to the rise of new brands, under the consumption trend of "national hot flashes", domestic old beverage brands such as Arctic Ocean and Bingfeng are also seeking new life;
4, function + sparkling water will become a new fashion. When functional food and sparkling water become popular tracks, functional sparkling water perfectly combines the two, on the one hand, it satisfies the pleasure in the mouth of consumers, on the other hand, it satisfies the user's pursuit of safety and health;
5. Plant milk continues to break the circle. Chinese has always had the tradition of drinking plant milk, coupled with plant protein from plants, low saturated fat content, no cholesterol, fiber is also richer, under the fashion wrapping "plant-based" is "popular".
Articles around water are still being created, for water drinking companies, innovation also needs to return water to its roots, so that simple sources can bring consumers not simple experiences and feelings.
The water market has been in a hot war, and who will spend it in 2022?