Trends I
Getting Sparkling:
a New Strategy for
Innovation
1
More and more F&B categories are “getting sparkling”, some of which
are becoming fast-growing star categories
“Getting sparkling” is becoming a popular innovation Presence of Carbonation drives innovation as
strategy for many categories esp. beverages well as sales
RTD Coconut Alcoholic
Coffee Snack …
tea water beverage
All “getting sparkling” for product innovation
Sparkling Sparkling Carbonated Hard seltzer Gas
RTD tea coconut coffee chips
water
Source：Nielsen
What’s behind “getting sparkling”: needs for indulgence & health
Why consumers enjoy sparkling experience: An example: flavored sparkling water as a
replacement for traditional carbonate beverages
Presence of carbonation is naturally connected
with excitement & joy
According to the BBC Earth experiment, the carbon dioxide
in the bubble drink will stimulate people's trigeminal nerves, Traditional Flavored
resulting in numbness and pleasure； sparkling
carbonate
beverages water
sparking & no-calories claims as a healthy label
The consumption of sugar in
Chinese cities has fallen
since 2015
Sparking infused beverages match consumers’
needs for new & exciting products
76% 63%
consumers consumers
like to try will to buy • Indulgent but unhealthy: • Relatively healthy and still
new mixed high in calories & sugar indulgent : low sugar or no
beverages beverages sugar added
Source：Mintel，Ceicdata 3
Flavored sparkling water: a fast-growing star category in relatively
diminishing carbonate beverage market
Underperforming carbonate beverage market Flavored sparkling water may be an ongoing trend of
V.S. fast-growing flavored sparkling water product upgrading in carbonate beverage category
Big players in carbonate beverage industry are taking actions to lower
the sugar/calories and keep the exciting experience at the same time
Sugar： 34.98-36.96g 0g 0g
Trait： Good flavor Healthy Good flavor and
Source：coca-cola,statista,Mintel
Healthy
More and more players are entering flavored sparkling water market
and star products emerges
China market
Global market
Big players
Coca-Cola Pepsi Tsingtao Brewery Jianlibao
• AHA will be launched in • Introduced Bubly in 2018 • Launched “Light zero”in2020 • Launched "micro-bubble"
2020 • Emphasizing on 0 calories • Featuring 0 sugar, 0 fat and 0 in 2020
• Featuring 0 calories and 0 and no-sweetener calories • Aiming to open up the
sugar market for young people
Spindrift LaCroix Yuanqi Forest Hankou No. 2 Factory
Fast-
• Has completed 7 • Had sales of $65 million • Born in 2016 • Born in 2017
growing rounds of financing in 2010 • The latest valuation reached 4 • Its estimated that annual
start-ups • The latest valuation • Sales reached $226 billion sales will reach 300 million.
exceeds $500 million million in 2015 • Revenue of RMB 800-1000 • Rich flavor
million (estimated)
Sparkling RTD tea: one of the most potential directions for RTD
tea innovation sparkling RTD
tea market
》9%
Big players in beverage industry have already Growth rate
Emerging start-ups are driving innovation
taken actions to seize the trend of sparkling RTD 2017-2021 in sparkling RTD tea
tea
• Teatulia is a privately owned tea
company based in Denver
Nongfu Spring has launched 4 products in the last 15 • Launched sparkling RTD tea in 2019
years, aiming to find the perfect combination of • Emphasizes the origin of tea materials
“sparkling+tea+juice"
• Sound launched sparkling tea in 2019
• Its products has USDA organic
certification, with 0 sugar and 0 calories
• Sparkling Ice produce all kinds of
2005 2010 2018 2020 beverages with bubbles,inclunding
Qi Tea Black Tea Soda Paopao Tea TOT sparkling RTD tea
• It has more than 20 flavors, some
contains caffeine
In 2015, Pepsi and In 2019, Starbucks • SkinTe was launched in 2018
Unilever launched brand Teavana • Its products contain herbs and
the Lipton Sparkling launched sparkling antioxidants, gluten-free
Ice Tea tea
Source： Technavio
Innovation strategies for sparkling RTD tea: focusing on source &
ingredients, healthy benefits and mix with other elements
Focus on source of tea and Sugar substitute & no-additives are Mix or infuse with other elements to
use organic label commonly used for healthy benefits enhance functional values
• No pollution, natural ingredients, • 0 sugar 0 calories • By adding specific elements and
safer strengthening certain functions, the main
• No added preservatives, artificial flavors target groups and market segments
• Healthy and nutritious
• Use sucrose and erythritol as sweeteners • Herbal elements are widely used, such as
• Selected planting area, tea flavor horsetail, passionflower, nettle root, etc.
can be better preserved
➢Teavana launches
sparkling tea in 2019
➢Free of artificial flavors
➢Including sucrose and
sugar-free products in
three flavors
Sound, emphasizing
➢Teatulia Organic Tea sells health labels such as Minna will add no
SkinTe emphasizes
sparkling tea at its Denver organic, 0 sugar 0 more than 45mg
its health and beauty
Tea Bar in 2012 cards and non-GMO of caffeine to
functionality by
➢It has 3,000 acres of some products
adding collagen and
organic tea gardens in while emphasizing
herbs sparkling tea
Bangladesh Source：Amazon 0 sugar 0 cards
Sparkling innovation is coming into coconut water category
Quite a few existing coconut water brands are New brands targeting sparkling coconut
introducing sparkling lines as an innovation strategy water category specifically are emerging
Vita Coco Kalena sprakling coconut water
• Launched sparkling coconut water in • A young brand
2018 • 6 SKUs
• Contains only 25 calories and 4g sugar • USDA organic certification
•Blue Monkey
• Established in 2009
• Production of coconut beverages and
snacks
• Contains many flavors of coconut water Trader Joes
• Launched its private brand of
Jax Coco
sparkling coconut water in 2018
• Founded in 2012
• Contains 10g of sugar and 60
• The target is the middle and high-end
calories
• The price is 30% higher than vita coco
Thirsty Buddha
• A plant-based food and beverage brands
• Including coconut water and sparkling
coconut water
Source： Technavio，
Innovation strategies for sparkling coconut water:
Infusing with more fruit elements other than The innovation logic of “coconut water going
coconut is a common way to enhance the flavor of sparkling” can be applied to other juice-based
sparkling coconut water beverage categories
Vita Coco Good Hope Water
• 4 fruit flavors • Born in 2019;
• including pineapple passion fruit, • 3 fruit flavors, including
grapefruit, lemon ginger hawthorn juice, peach juice and
apricot juice
• Common in hot pot restaurants
Coco joy and barbecue
• 4 fruit flavors
• including Grapefruit, Pineapple,
Pomegranate, Strawberry Appletiser
• Coca-Cola buys Appletiser in
2014
Thirsty Buddha • Appletiser added sparkling to
• 5 fruit flavors natural apple juice
• including Grapefruit , Lime , Peach • Entered China in March 2020
Mango , Pineapple , Watermelon
