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source from whatech

Changing consumer preferences are driving the Chinese beverages market

This market research report is an essential tool for keeping up-to-date with the latest industry developments in the China beverage market.

China is one of the largest consumers of food and beverages in the world, simultaneously also being one of the largest producers. Rising incomes are adding more sophistication to the market, with urban residents in particular, spending a larger proportion of their incomes buying packaged and imported beverages from supermarkets. Given these market conditions, the Chinese beverage market will soon be ready to take over US, as the largest consumer of food and beverages in the world.

This report: Quarter Beverage Tracker: China  offers a comprehensive analysis for the beverages market in China, offering data information and market forecasts. The report identifies the key drivers, market trends and presents a detailed market overview.

Market overview

The Chinese beverages industry is growing at an alarming rate with more and more types of drinks being introduced in the market every day, to suit various consumer palates. Overall, the increase in consumption has gone up by a substantial rate with the soft drinks market recording double digit improvements in 2013. The Chinese functional drink market has also witnessed growth. Among the beverages dominating the Chinese beverages market, bottled drinking water and carbonated beverages have accounted for the largest market share, followed by protein beverages and fruit and vegetable beverages. Simultaneously, tea consumption in the country has also gone up and further strengthened the market.

Market drivers

Rising disposable incomes, urbanization drives across the nation, improved brand exposure and retail distribution coupled with rapidly changing lifestyle choices are driving major changes in the consumption patterns of the Chinese population. China has witnessed an average GDP growth of around 10 percent over the past ten years which has led to the creation of a new middle-income group with much higher levels of disposable income. These new sets of consumers have largely contributed to the changing purchase trends given their ability to spend on and experiment with various types of products available in the market. While health consciousness and increased concern for well-being has driven the Chinese functional drinks and health drink markets, changing social and cultural factors including China’s expanding pub culture have strengthened the potential of China’s alcoholic beverage market. Additionally, a rise in the number of women who consume alcohol especially wine has further expanded the Chinese alcoholic beverage market.

Key players

China has seen many new brands like Master Kong enter the market over the last quarter. The immense potential of the market, alongwith the growing popularity of the market has spurred several new brands to venture into the market, thus keeping the Chinese beverage industry very competitive in nature. 

Big brand owners in China, such as Coca-Cola, PepsiCo, Watsons, Robusts have tried to experiment and develop new innovative flavors to attract more consumers. In the sports drinks category Mizone and Gatorade are the main brands while Red Bull and Lipovitan lead the energy drinks market. Jiaduobao and Wong Lo Kat are the main players in the vegetable protein drinks while Yili, Mengniu and Bright are the top three players in the dairy market.