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Soft Drinks in China
December 2021
Soft drinks in 2021: A return to modest growth in 2021
Soft drinks witnessed both volume and value declines in both the off-trade and on-trade channels in 2020 because of the COVID-19 pandemic. During the tough period when the government called a nationwide lockdown, home seclusion resulted in a significant loss of drinking occasions, especially for impulse consumption, which accounted for a large proportion of total off-trade consumption of soft drinks.
Health trend continues to influence sales
The health and wellness trend continues to profoundly influence soft drinks in China. Reduced-sugar, low-calorie and other health-related soft drinks have gradually become a prominent factor shaping consumer demand.
Cross-border innovative players intensify the competition in soft drinks
Within overall soft drinks, multinational players maintain the leading positions in the off-trade channel in both value and volume terms, thanks to their long-established distribution channels and brand recognition. Tingyi (Cayman Islands) Holdings Corp (Ting Hsin International Group) and Coca-Cola China occupy the first and second places in soft drinks, followed by local enterprise Nongfu Spring and Red Bull Vitamin Drink.
Retailing developments
Soft drinks are available in a number of retail channels in China, the most popular of which are independent small grocers and supermarkets. However, convenience stores and supermarkets located in neighbourhoods became the first choice for consumers when buying daily necessities, including soft drinks, during and even after the pandemic, as most wanted to avoid unnecessary travel to larger stores and those in out-of-town locations.
Foodservice vs retail split
In 2021, the majority of volume sales of soft drinks still came from the off-trade, leaving only a single-digit share attributable to the on-trade channel, as most soft drinks are targeted for impulse on-the-go consumption. Another reason is that the on-trade channel usually has greater mark-ups on these products than the off-trade, which results in less consumer incentive to buy soft drinks with a meal.
What next for soft drinks?
Soft drinks is expected to see moderate growth over the forecast period in both current value and volume terms, both off-trade and on-trade. In pursuit of healthy lifestyles, health-related ready-to-drink beverages such as bottled water, 100% juice, RTD coffee, naturally healthy RTD tea and energy drinks will continue to contribute to the growth of soft drinks.
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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
EXECUTIVE SUMMARY
Soft drinks in 2021: A return to modest growth in 2021
Health trend continues to influence sales
Cross-border innovative players intensify the competition in soft drinks
Table 1 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2016-2021Table 2 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2016-2021Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2016-2021Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2016-2021Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2020Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2020Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2020Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2020Table 9 Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2016-2021Table 10 Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2016-2021Table 11 Off-trade Sales of Soft Drinks by Category: Value 2016-2021Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2016-2021Table 13 Sales of Soft Drinks by Total Fountain On-trade: Volume 2016-2021Table 14 Sales of Soft Drinks by Total Fountain On-trade: % Volume Growth 2016-2021Table 15 NBO Company Shares of Total Soft Drinks (RTD): % Volume 2017-2021Table 16 LBN Brand Shares of Total Soft Drinks (RTD): % Volume 2018-2021Table 17 NBO Company Shares of On-trade Soft Drinks (RTD): % Volume 2017-2021Table 18 LBN Brand Shares of On-trade Soft Drinks (RTD): % Volume 2018-2021Table 19 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2017-2021Table 20 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2018-2021Table 21 NBO Company Shares of Off-trade Soft Drinks: % Value 2017-2021Table 22 LBN Brand Shares of Off-trade Soft Drinks: % Value 2018-2021Table 23 Distribution of Off-trade Soft Drinks (as sold) by Format: % Volume 2016-2021Table 24 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2021Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2021-2026Table 26 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2021-2026Table 27 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2021-2026Table 28 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2021-2026Table 29 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2021-2026Table 30 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2021-2026Table 31 Forecast Off-trade Sales of Soft Drinks by Category: Value 2021-2026Table 32 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2021-2026Table 33 Forecast Sales of Soft Drinks by Total Fountain On-trade: Volume 2021-2026Table 34 Forecast Sales of Soft Drinks by Total Fountain On-trade: % Volume Growth 2021-2026
APPENDIX
Fountain sales in China
Trends
DISCLAIMER
SOURCES
Summary 1 Research Sources
Carbonates in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Reduced-sugar and sugar-free carbonates outperform regular carbonates
Coca-Cola China continues its localisation
Home seclusion boosts sales via e-commerce as consumers protect themselves
PROSPECTS AND OPPORTUNITIES
Carbonates expected to thrive in the forecast period
International players to expand by launching sugar-free products
Coca-Cola aims to maintain its dominance of carbonates through production expansion
CATEGORY DATA
Table 35 Off-trade vs On-trade Sales of Carbonates: Volume 2016-2021Table 36 Off-trade vs On-trade Sales of Carbonates: Value 2016-2021Table 37 Off-trade vs On-trade Sales of Carbonates: % Volume Growth 2016-2021Table 38 Off-trade vs On-trade Sales of Carbonates: % Value Growth 2016-2021Table 39 Off-trade Sales of Carbonates by Category: Volume 2016-2021Table 40 Off-trade Sales of Carbonates by Category: Value 2016-2021Table 41 Off-trade Sales of Carbonates by Category: % Volume Growth 2016-2021Table 42 Off-trade Sales of Carbonates by Category: % Value Growth 2016-2021Table 43 Total Sales of Carbonates by Fountain On-trade: Volume 2016-2021Table 44 Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2016-2021Table 45 NBO Company Shares of Off-trade Carbonates: % Volume 2017-2021Table 46 LBN Brand Shares of Off-trade Carbonates: % Volume 2018-2021Table 47 NBO Company Shares of Off-trade Carbonates: % Value 2017-2021Table 48 LBN Brand Shares of Off-trade Carbonates: % Value 2018-2021Table 49 Forecast Off-trade Sales of Carbonates by Category: Volume 2021-2026Table 50 Forecast Off-trade Sales of Carbonates by Category: Value 2021-2026Table 51 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth 2021-2026Table 52 Forecast Off-trade Sales of Carbonates by Category: % Value Growth 2021-2026Table 53 Forecast Total Sales of Carbonates by Fountain On-trade: Volume 2021-2026Table 54 Forecast Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2021-2026
Juice in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Consumers move to products with a higher juice content
E-commerce sees a strong rise in its distribution share
Sales of juice via independent small grocers fall
PROSPECTS AND OPPORTUNITIES
No off-trade volume recovery in the forecast period
Higher juice content products will have the best potential over the forecast period
Changes expected in the competitive environment and new launches likely to cause category blurring
CATEGORY DATA
Table 55 Off-trade Sales of Juice by Category: Volume 2016-2021Table 56 Off-trade Sales of Juice by Category: Value 2016-2021Table 57 Off-trade Sales of Juice by Category: % Volume Growth 2016-2021Table 58 Off-trade Sales of Juice by Category: % Value Growth 2016-2021Table 59 NBO Company Shares of Off-trade Juice: % Volume 2017-2021Table 60 LBN Brand Shares of Off-trade Juice: % Volume 2018-2021Table 61 NBO Company Shares of Off-trade Juice: % Value 2017-2021Table 62 LBN Brand Shares of Off-trade Juice: % Value 2018-2021Table 63 Forecast Off-trade Sales of Juice by Category: Volume 2021-2026Table 64 Forecast Off-trade Sales of Juice by Category: Value 2021-2026Table 65 Forecast Off-trade Sales of Juice by Category: % Volume Growth 2021-2026Table 66 Forecast Off-trade Sales of Juice by Category: % Value Growth 2021-2026
Bottled Water in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Still bottled water returns to stronger volume growth as out-of-home consumption recovers
Innovations aim to address declining sales
Nongfu Spring maintains its lead and Nestlé sells mass water brands to Tsingtao Brewery
PROSPECTS AND OPPORTUNITIES
Large pack sizes set to grow in importance in still bottled water
Premiumisation likely to continue in still bottled water
Prospects for product developments which include hyaluronic acid
CATEGORY DATA
Table 67 Off-trade Sales of Bottled Water by Category: Volume 2016-2021Table 68 Off-trade Sales of Bottled Water by Category: Value 2016-2021Table 69 Off-trade Sales of Bottled Water by Category: % Volume Growth 2016-2021Table 70 Off-trade Sales of Bottled Water by Category: % Value Growth 2016-2021Table 71 NBO Company Shares of Off-trade Bottled Water: % Volume 2017-2021Table 72 LBN Brand Shares of Off-trade Bottled Water: % Volume 2018-2021Table 73 NBO Company Shares of Off-trade Bottled Water: % Value 2017-2021Table 74 LBN Brand Shares of Off-trade Bottled Water: % Value 2018-2021Table 75 Forecast Off-trade Sales of Bottled Water by Category: Volume 2021-2026Table 76 Forecast Off-trade Sales of Bottled Water by Category: Value 2021-2026Table 77 Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth 2021-2026Table 78 Forecast Off-trade Sales of Bottled Water by Category: % Value Growth 2021-2026
Sports Drinks in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Sports drinks rebounds in 2021 as gyms reopen and the Olympic Games loom
Beneficial ingredients increase consumption occasions other than hydration
Leading player Guangdong Jianlibao Group enters the sugar-free segment
PROSPECTS AND OPPORTUNITIES
Sports drinks to witness a wider consumer group and segmentation by function
Beijing 2022 Winter Olympics likely to drive the consumption of sports drinks
Sponsorship of sports events has potential in the future as the pandemic recedes
CATEGORY DATA
Table 79 Off-trade Sales of Sports Drinks: Volume 2016-2021Table 80 Off-trade Sales of Sports Drinks: Value 2016-2021Table 81 Off-trade Sales of Sports Drinks: % Volume Growth 2016-2021Table 82 Off-trade Sales of Sports Drinks: % Value Growth 2016-2021Table 83 NBO Company Shares of Off-trade Sports Drinks: % Volume 2017-2021Table 84 LBN Brand Shares of Off-trade Sports Drinks: % Volume 2018-2021Table 85 NBO Company Shares of Off-trade Sports Drinks: % Value 2017-2021Table 86 LBN Brand Shares of Off-trade Sports Drinks: % Value 2018-2021Table 87 Forecast Off-trade Sales of Sports Drinks: Volume 2021-2026Table 88 Forecast Off-trade Sales of Sports Drinks: Value 2021-2026Table 89 Forecast Off-trade Sales of Sports Drinks: % Volume Growth 2021-2026Table 90 Forecast Off-trade Sales of Sports Drinks: % Value Growth 2021-2026
Energy Drinks in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Return of consumption occasions boosts growth of energy drinks
Red Bull trademark dispute finally settles down...for now
Budweiser Brewing Company China enters energy drinks
PROSPECTS AND OPPORTUNITIES
Continued prospects for growth for energy drinks
Sugar-free likely to gain popularity in energy drinks
Four Red Bull brands continue to co-exist in the Chinese market
CATEGORY DATA
Table 91 Off-trade Sales of Energy Drinks: Volume 2016-2021Table 92 Off-trade Sales of Energy Drinks: Value 2016-2021Table 93 Off-trade Sales of Energy Drinks: % Volume Growth 2016-2021Table 94 Off-trade Sales of Energy Drinks: % Value Growth 2016-2021Table 95 NBO Company Shares of Off-trade Energy Drinks: % Volume 2017-2021Table 96 LBN Brand Shares of Off-trade Energy Drinks: % Volume 2018-2021Table 97 NBO Company Shares of Off-trade Energy Drinks: % Value 2017-2021Table 98 LBN Brand Shares of Off-trade Energy Drinks: % Value 2018-2021Table 99 Forecast Off-trade Sales of Energy Drinks: Volume 2021-2026Table 100 Forecast Off-trade Sales of Energy Drinks: Value 2021-2026Table 101 Forecast Off-trade Sales of Energy Drinks: % Volume Growth 2021-2026Table 102 Forecast Off-trade Sales of Energy Drinks: % Value Growth 2021-2026
Concentrates in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Continued sales decline attributed to poor performance of powder concentrates
Liquid concentrates sees higher growth thanks to liquid coffee concentrates
Fragmentation reduces in concentrates thanks to success of Hangzhou Yuxi Trading
PROSPECTS AND OPPORTUNITIES
Powder concentrates set to continue to decline, while liquid concentrates will thrive
The rise of other categories will threaten concentrates
Continued growth expected for Hangzhou Yuxi Trading
CATEGORY DATA
Concentrates conversions
Summary 2 Concentrates Conversion Factors for Ready-to-Drink (RTD) FormatTable 103 Off-trade Sales of Concentrates (RTD) by Category: Volume 2016-2021Table 104 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2016-2021Table 105 Off-trade Sales of Concentrates by Category: Value 2016-2021Table 106 Off-trade Sales of Concentrates by Category: % Value Growth 2016-2021Table 107 LBN Brand Shares of Off-trade Concentrates (RTD): % Volume 2018-2021Table 108 NBO Company Shares of Off-trade Concentrates: % Value 2017-2021Table 109 LBN Brand Shares of Off-trade Concentrates: % Value 2018-2021Table 110 NBO Company Shares of Off-trade Liquid Concentrates (RTD): % Volume 2017-2021Table 111 LBN Brand Shares of Off-trade Liquid Concentrates (RTD): % Volume 2018-2021Table 112 NBO Company Shares of Off-trade Powder Concentrates (RTD): % Volume 2017-2021Table 113 LBN Brand Shares of Off-trade Powder Concentrates (RTD): % Volume 2018-2021Table 114 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2021-2026Table 115 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2021-2026Table 116 Forecast Off-trade Sales of Concentrates by Category: Value 2021-2026Table 117 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2021-2026
RTD Tea in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Street stalls/kiosks remain a challenge to the growth of RTD tea
Ambiguous claims on Genki Forest Milk Tea packaging
Decline for Vitasoy International Holdings due to political reasons
PROSPECTS AND OPPORTUNITIES
Reduced sugar and sugar-free RTD tea will drive growth
Premiumisation set to continue in RTD tea
Launch of alcoholic RTD tea variants will blur category lines
CATEGORY DATA
Table 118 Off-trade Sales of RTD Tea by Category: Volume 2016-2021Table 119 Off-trade Sales of RTD Tea by Category: Value 2016-2021Table 120 Off-trade Sales of RTD Tea by Category: % Volume Growth 2016-2021Table 121 Off-trade Sales of RTD Tea by Category: % Value Growth 2016-2021Table 122 Leading Flavours for Off-trade RTD Tea: % Volume 2016-2021Table 123 NBO Company Shares of Off-trade RTD Tea: % Volume 2017-2021Table 124 LBN Brand Shares of Off-trade RTD Tea: % Volume 2018-2021Table 125 NBO Company Shares of Off-trade RTD Tea: % Value 2017-2021Table 126 LBN Brand Shares of Off-trade RTD Tea: % Value 2018-2021Table 127 Forecast Off-trade Sales of RTD Tea by Category: Volume 2021-2026Table 128 Forecast Off-trade Sales of RTD Tea by Category: Value 2021-2026Table 129 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth 2021-2026Table 130 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth 2021-2026
RTD Coffee in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
Nestlé (China) witnesses robust growth over the entire review period
Carbonated RTD coffee appears in the market
New players enter RTD coffee, increasing the competition
PROSPECTS AND OPPORTUNITIES
Positive outlook for RTD coffee as caffeine consumption is low
Consumption upgrading likely to drive value sales
New variants and flavour innovations will contribute to growth
CATEGORY DATA
Table 131 Off-trade Sales of RTD Coffee: Volume 2016-2021Table 132 Off-trade Sales of RTD Coffee: Value 2016-2021Table 133 Off-trade Sales of RTD Coffee: % Volume Growth 2016-2021Table 134 Off-trade Sales of RTD Coffee: % Value Growth 2016-2021Table 135 NBO Company Shares of Off-trade RTD Coffee: % Volume 2017-2021Table 136 LBN Brand Shares of Off-trade RTD Coffee: % Volume 2018-2021Table 137 NBO Company Shares of Off-trade RTD Coffee: % Value 2017-2021Table 138 LBN Brand Shares of Off-trade RTD Coffee: % Value 2018-2021Table 139 Forecast Off-trade Sales of RTD Coffee: Volume 2021-2026Table 140 Forecast Off-trade Sales of RTD Coffee: Value 2021-2026Table 141 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2021-2026Table 142 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2021-2026
Asian Speciality Drinks in China
KEY DATA FINDINGS
2021 DEVELOPMENTS
No rebound in sales in 2021 either off-trade or on-trade
International soft drinks giants enter drinking vinegar
Asian speciality drinks remains fragmented
PROSPECTS AND OPPORTUNITIES
Decline set to continue as consumers move to other soft drinks categories
A niche segment, beauty-oriented beverages, might have potential
Potential by achieving nationwide coverage
CATEGORY DATA
Table 143 Off-trade Sales of Asian Speciality Drinks: Volume 2016-2021Table 144 Off-trade Sales of Asian Speciality Drinks: Value 2016-2021Table 145 Off-trade Sales of Asian Speciality Drinks: % Volume Growth 2016-2021Table 146 Off-trade Sales of Asian Speciality Drinks: % Value Growth 2016-2021Table 147 NBO Company Shares of Off-trade Asian Speciality Drinks: % Volume 2017-2021Table 148 LBN Brand Shares of Off-trade Asian Speciality Drinks: % Volume 2018-2021Table 149 NBO Company Shares of Off-trade Asian Speciality Drinks: % Value 2017-2021Table 150 LBN Brand Shares of Off-trade Asian Speciality Drinks: % Value 2018-2021Table 151 Forecast Off-trade Sales of Asian Speciality Drinks: Volume 2021-2026Table 152 Forecast Off-trade Sales of Asian Speciality Drinks: Value 2021-2026Table 153 Forecast Off-trade Sales of Asian Speciality Drinks: % Volume Growth 2021-2026Table 154 Forecast Off-trade Sales of Asian Speciality Drinks: % Value Growth 2021-2026
The following categories and subcategories are included: