Dallas, TX (PRWEB) April 12, 2014
In China, soft drinks refer to natural or synthetic beverages with less than 0.5% of alcohol content, which may result from fermentation of sugars in an unsterile environment and the preparation of the flavoring extracts such as vanilla extract.
The demand for soft drinks kept growing as Chinese people's consumption level increased in the last 30 years. There are a wide range of products and many powerful competitors in the market.
In 2013, the total production volume of soft drinks was 149.268 million tons (up by 14.61% YOY), approximately 10 times of that in 2000. The CAGR of the total production volume was 19.4% in 20002013, far ahead of GDP over the same period.
Varieties of soft drinks increase as the production volume goes up.
In China, most soft drinks are consumed by households and catering market. Similarities and differences of the two segmented markets will be analyzed in detail in the CRI report.
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The soft drink market in China mainly consists of carbonated drinks, fruit&vegetable juice, bottled water, tea drinks, protein drinks and other drinks, while bottled water and carbonated drinks occupy most of the market. However, the competition pattern has undergone massive changes recently. Growing concern about health leads to increase in demand for healthy tea drinks, protein drinks and fruit&vegetable juice and decrease in that for carbonated drinks.
As a rising star in the market, functional drinks are sports drinks represented by Mizone and Gatorade, energy drinks such as Red Bull and Lipovitan, and herbal drinks like Wong Lo Kat and JDB.
In China, the consumption per capita of soft drinks, especially in rural areas, is lower than that in developed countries. Perfect competition in the emerging industry attracts a large amount of international soft drink giants. The competition transfers from products to the industry chain while the marketing mode of brand operation is gradually replaced by channel management, making the channels major targets for soft drink manufacturers.
In the coming years, the growth rate of the production volume of soft drinks is expected to remain above 10%, higher than that of GDP.
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