Soft drinks sales growth rebounds in 2013
Total volume and total current value sales growth of soft drinks in China rebounded in 2013 compared with that of 2012. The major reason for this was that the summer weather in 2013 gave the industry a boost in sales. More sunshine means that more people purchase drinks to enjoy outside and more impulse buys are made in such hot weather. Besides this, new product development in several types of soft drinks also drove consumption in 2013, particularly in RTD coffee and RTD tea as well as in juice.
Niche brands drive innovation in new product development
In 2013, some local niche brands were engaged in product innovation. For instance, Xi’an Tangyun Drinks Co Ltd, a local company, released a new Asian speciality drinks product, Shihuatang, in 2013 and positioned it as a kind of healthy and functional drink with many natural ingredients. The product is focused on the consumer foodservice channel and may pose huge competition for Wong Lo Kat and Jiaduobao in lower-tier cities. Furthermore, some small juice manufacturers have developed premium 100% superfruit juices targeting high-end consumers, such as Changbaigongfang, 100% Blueberry Juice from Changbai Gongfang Technology and Trade Ltd, and Kaiz, 100% Arbutus Juice and 100% Cherry Juice from Haitong Food Group Co Ltd.
Competition within soft drinks is increasingly intense
Increasingly more disputes happened among soft drinks companies in 2013 in China. After a brand ownership dispute between Guangzhou Wanglaoji Pharmaceutical Co Ltd and Guangdong Jiaduobao Beverage & Food Co Ltd came to an end, the two companies started a new round of war through heavy investment in distribution expansion and advertising in order to erode each other’s share of soft drinks and gain more for themselves. Meanwhile, Nongfu Spring Co Ltd and Shenzhen C'est Bon Food & Beverage Co Ltd have been in a raging war of words and the conflict has continued to escalate. Besides these, it is more obvious that more companies have grasped shares of soft drinks through launching similar products. For example, since the flavour of crystal sugar pear has been greatly welcomed, domestic players such as President Enterprises (China) Investment Co Ltd, Hangzhou Wahaha Group and Shanghai Tenwow Food Co Ltd have successively introduced similar flavour products to grasp the opportunity from the increasing popularity of crystal sugar pear flavour.
Modern grocery retailers continues to increase in importance in distribution of soft drinks
Soft drinks manufacturers have continued to increase their penetration in China with distribution within both first- and second-tier cities and expansion of their national coverage by leveraging on modern channels, such as hypermarkets and supermarkets. Furthermore, more hypermarkets and supermarkets are dedicated to penetration into lower-tier cities which also matches the distribution strategy of soft drinks companies. Meanwhile, due to increasing demand for on-the-go products, more soft drinks were sold through convenience stores which rapidly expanded in the review period.
Soft drinks is expected to see dynamic CAGR growth in the forecast period
The soft drinks industry in China is anticipated to register robust growth over the forecast period. Growth will be mainly underpinned by rapidly growing types of soft drinks, such as energy drinks, Asian speciality drinks and functional bottled water as well as RTD tea. These soft drinks obviously present increasing demand of Chinese consumers for health and wellness as well as fast-paced lifestyles. Meanwhile, as some mature types of soft drinks, such as carbonates and juice, will tend to grow moderately, the smaller types will accelerate to gain more shares within soft drinks and drive the dynamics of the industry through more new product innovation, which also indicates that soft drinks will offer more diversified options in the forecast period.
Samples (FAQs about samples):
Sample Soft Drinks Market Research Report
Sample Soft Drinks Data
Delivery: Files are delivered directly into your account within a few minutes of purchase.
Discover the latest market trends and uncover sources of future market growth for the Soft Drinks industry in China with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Soft Drinks industry in China, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in China for free:
The Soft Drinks in China market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Soft Drinks in China?
- What are the major brands in China?
- What potential exists for multinational vs. local soft drinks companies looking to increase market share?
- How have changing social attitudes affected soft drink sales?
- How have sustainability issues; such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, affected the soft drink industry?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Soft Drinks market research database.