Soft drinks in 2024: The big picture
In 2024, both off-trade volume and current value growth of soft drinks in China are set to maintain mid single-digit increases. Health remains a crucial factor influencing the consumption behaviour of Chinese consumers, especially in soft drinks.
2024 key trends
In 2024, Chinese consumers’ pursuit of health in soft drinks is not only reflected in their preference for reduced sugar and sugar-free products, but also in their increasing focus on simpler and cleaner ingredient lists. Products such as pure tea beverages, with their clean ingredient profile and refreshing taste, have seen steadily rising sales.
Competitive landscape
In terms of overall off-trade value sales in soft drinks in China in 2024, Tingyi (Cayman Islands) Holdings Corp is set to maintain its leadership, due to its steady performance in categories such as regular still RTD tea, bottled water, and carbonates. Meanwhile, thanks to its continuous growth in RTD tea and sports drinks, Nongfu Spring Co Ltd is expected to surpassed Tingyi (Cayman Islands) Holdings Corp in overall soft drinks in terms of off-trade volume sales for the first time in 2024.
Retailing developments
In 2024, supermarkets and small local grocers are expected to remain the primary distribution channels for Chinese consumers to purchase soft drinks, followed by convenience stores and hypermarkets. Meanwhile, with ongoing urbanisation, the coverage and penetration rate of convenience stores in China has gradually increased.
Foodservice vs retail split
In 2024, sales through the retail channel (off-trade) are set to continue to dominate total volume sales of soft drinks, while foodservice (on-trade) is expected to account for only a single-digit share of total sales. Although the growth rates for soft drinks volume and value sales in foodservice have rebounded compared with the pandemic period, changes in the economic environment have meant that consumer spending on dining out has not resurged significantly.
What next for soft drinks?
During the forecast period, the total consumption of soft drinks in China is expected to continue its slow growth trajectory, despite significant differences between various categories. Overall, Chinese consumer demand for soft drinks remains relatively stable.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft Drinks industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft Drinks industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Soft Drinks in China report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Soft Drinks in China?
- To what extent are health considerations impacting consumption of Soft Drinks in China?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in China?
- Which are the leading brands in Soft Drinks in China?
- What potential exists for multinational or domestic soft drinks companies to expand in China?
- How are products distributed in Soft Drinks in China?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in China
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in China
Trends
DISCLAIMER
Bottled Water in China
KEY DATA FINDINGS
Expanding variety of household consumption scenarios fuels the development of bottled water
The concentration of still bottled water in China remains high
The functionality of bottled water tends to be a focus of consumers
Bottled water brands offer a wider variety of sparkling flavours to attract younger consumers
Chinese consumers’ bottled water consumption scenarios have become increasingly segmented
Rapid growth of large-pack still bottled water shows a good opportunity for the future
Carbonates in China
KEY DATA FINDINGS
Off-trade volume growth of carbonates slows significantly, but average unit prices rise
Growth continues for reduced sugar carbonates, yet the rate of increase notably slows
The introduction of new flavours in carbonates has become increasingly frequent
Carbonates faces fierce competition from other soft drinks categories
Cross-category collaborations between carbonates and alcoholic drinks have emerged as a significant growth opportunity in China
Although the off-trade accounts for the majority of sales in carbonates, on-trade growth is expected to accelerate in the future
Concentrates in China
KEY DATA FINDINGS
Lacking product differentiation and innovation, demand for concentrates is weak and falling
Liquid concentrates is highly competitive, while Tang continues to lead powder concentrates
Manufacturers emphasise their health positioning
Forecast decline in off-trade RTD volume and value sales, driven by powder concentrates
Liquid concentrates set to maintain growth, but will still experience challenges
Lemon Republic launches lemon liquid concentrates to meet consumer preferences amidst intense competition
Concentrates conversions
Juice in China
KEY DATA FINDINGS
The demand for healthy and natural juices is increasing
Scenario-based marketing for juice
Innovative flavours and combinations
Future trends in distribution channels for juice
Nutrient supplementation: Juices will continue to become more functional
The continued rise of premiumisation in juice
RTD Coffee in China
KEY DATA FINDINGS
Changes in consumer preference and competition weaken demand for RTD coffee
More players launch RTD coffee for portfolio diversification
Packaging diversification supports a wide range of consumption scenarios in a highly competitive market
The introduction of health-oriented RTD coffee and flavour innovations will drive growth
RTD coffee expected to see further segmentation, driven by diverse consumer demand
Omnichannel strategy key for both leading and emerging brands
RTD Tea in China
KEY DATA FINDINGS
Health and sugar reduction trends drive rapid growth for reduced sugar still RTD tea
Upgrades and innovations in RTD tea further propel growth
Reduced sugar still RTD tea has become increasingly crowded, leading to intensified competition
RTD tea expected to capture share from freshly-made tea drinks in the future
Convenience stores is becoming a growing distribution channel for RTD tea
Live-streaming e-commerce may further stimulate sales of RTD tea
Energy Drinks in China
KEY DATA FINDINGS
The usage scenarios for energy drinks are becoming increasingly diverse
The competition in energy drinks is becoming increasingly intense
The ingredients in energy drinks are also becoming more diverse
Reduced sugar energy drinks expected to be an important focus
The distinction between energy drinks and sports drinks is becoming increasingly blurred
Concerns amongst Chinese consumers regarding sugar and caffeine intake may affect the prospects for energy drinks
Sports Drinks in China
KEY DATA FINDINGS
Popularity of outdoor sports drives the growth of sports drinks
Alienergy sees sustained sales growth, taking the lead in sports drinks in value terms
Focus on electrolytes in sports drinks in China
Sports drinks expected to offer benefits beyond basic hydration
Packaging and product formats for sports drinks have become a new focus area for brand development
Consumers are expecting new flavour innovations in sports drinks
Asian Speciality Drinks in China
KEY DATA FINDINGS
Rising demand for health-driven Asian speciality drinks – fruit vinegar leads the way
Long-term potential for bird’s nest drinks is questionable
Tiandi No 1 leads sales and growth in Asian speciality drinks, with Aqua More following
Expansion of retail e-commerce channels
Packaging will continue to see innovation and adaptation to fast-paced lifestyles
Functionality and health benefits will continue to provide opportunities for Asian speciality drinks
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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