Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Excluded
Executive Summary
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- The market
- Stable retail market value growth with challenges and opportunities
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- Figure 1: Best- and worst-case forecast for soft drinks, by value, 2013-23
- Juice is the main value contributor
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- Figure 2: Soft drink sub-categories, by value, 2018
- New production technologies and blurring trend can push growth
- Companies and brands
- Traditional CSD players tapping into more sub-categories
- Local leading brands expand in healthy drinks
- Fan economy targeting young generation
- From the inside out encourage frequent usage
- The consumer
- Different sub-categories see opportunities and challenges
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- Figure 3: Consumption frequency of soft drinks, China, July 2018
- Consumers choose drinks based on occasions
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- Figure 4: Consumption occasions of soft drinks, China, July 2018
- Boosting energy and health are important consumption reasons
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- Figure 5: Consumption purposes of soft drinks, China, July 2018
- Promotion strategies for different types of consumers
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- Figure 6: Selected purchase triggers of soft drinks, by age, China, July 2018
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- Figure 7: Selected purchase triggers of soft drinks, by employment, China, July 2018
- Figure 8: Selected purchase trigger of soft drinks, by monthly personal income, China, July 2018
- More than half of the population purchase in offline channels
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- Figure 9: Attitudes towards soft drink consumption, China, July 2018
- Sparkling texture is gaining popularity
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- Figure 10: Attitudes towards soft drink consumption, China, July 2018
- Increasingly consumers want to know what exactly they are drinking
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- Figure 11: Attitudes towards soft drink consumption, China, July 2018
- More interests in natural and functional ingredients
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- Figure 12: Interests in innovation, China, July 2018
- What we think
Issues and Insights
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- Consumer demand for nutrition keeps driving innovation
- The facts
- The implications
- Occasion-wise products can be better differentiated
- The facts
- The implications
- Potential opportunities in cooperating with food delivery services
- The facts
- The implications
The Market – What You Need to Know
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- Growth from consumers’ status of being outside
- Sports and energy drinks retain high growth rate
- Slowing acceleration in the market
Market Drivers
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- Consumers’ status of being outside contributes to the market growth
- Blurring between different sub-categories offers growing opportunities
- New production technology may help drive tea and juice consumption
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- Figure 13: Instantaneous nitrogen filling process in an aluminium pot, China, 2018
Market Segmentation
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- Juice as the most value generating sub-category
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- Figure 14: Soft drink segmentation, by sales value, 2018
- High growth in sports and energy drink sub-categories
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- Figure 15: Market value of sports and energy drinks, China, 2013-18
- Plant protein drinks have slowed down their growth
Market Size and Forecast
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- Slower growth rate with opportunities to improve
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- Figure 16: Best- and worst-case forecast for soft drinks, by value, 2013-23
- Forecast market value will reach RMB872 billion by 2023
Key Players – What You Need to Know
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- Coca-Cola and PepsiCo investing in healthy products
- Domestic brands have adapted marketing mix
- New players with product lines of their expertise
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- Figure 17: Soft drinks by Yuanqisenlin
Competitive Strategies
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- Making healthy drinks with low/no/reduced sugar…
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- Figure 18: Sugar level of carbonated soft drinks new launches in China, October 2015-September 2018
- Figure 19: New launches in energy drinks category with claim of L/N/R sugar, China, October 2015-September 2018
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- Figure 20: Soft drinks having claim on sugar level, China
- …or adding additional nutrients
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- Figure 21: New launches in energy drinks with claim on vitamin/mineral-fortified, China, October 2015-September 2018
- Figure 22: New launches in sports drinks with claim on vitamin/mineral-fortified, China, October 2015-September 2018
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- Figure 23: Soft drinks with probiotics, China
- Figure 24: Chun Yue, bottled water with additional fibre, by Coca-Cola, China
- IP collaboration
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- Figure 25: Ri Jia Man energy drink collaboration with online game, China, 2018
- Borrow ideas from foodservice
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- Figure 26: New products of Uni-President, China, 2018
- Sponsorship with variety shows
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- Figure 27: Receiving more voting rights by purchasing Nongfu Spring soft drinks, China, 2018
- Figure 28: Celebrity customised soft drinks, by Nongfu Spring, China, 2018
Who’s Innovating?
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- Energy drinks that can prevent hangover
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- Figure 29: B4 energy drink with claims of hangover prevention supplement, US, 2016
- Shift towards natural ingredients
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- Figure 30: Examples of soft drinks with natural ingredients in China, 2018
- From the inside out: Beauty as a new path to explore
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- Figure 31: Top sub-categories with beauty-related claims, China, October 2015-September 2018
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- Figure 32: Examples of soft drinks with collagen in other markets
- Figure 33: Examples of soft drinks with Hyaluronic acid in other markets
- Figure 34: Examples of soft drinks with rejuvenation and antioxidant claims
- Probiotic drinks on demand
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- Figure 35: Examples of soft drinks with probiotic
The Consumer – What You Need to Know
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- Consumers seek functional benefits from soft drinks
- Offline channels are important for promoting new products
- Consumers’ preference of different drinks is occasion-based
Consumption Frequency
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- Families with one child drink more bottled water
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- Figure 36: Soft drinks consumption frequency, China, July 2018
- Post-1980s and post-1990s are medium users of tea and infusions
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- Figure 37: Consumption frequency of tea and infusions, by generation, China, July 2018
- Attracting females can help increase juice consumption frequency
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- Figure 38: Juice consumption frequency, by gender and age, China, July 2018
- Carbonated soft drinks still have chance to revive
- 25-29-year-olds consume sports and energy drinks the most frequently
Consumption Occasions
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- Tea and energy drinks compete on the occasion of studying or working
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- Figure 39: Consumption occasion of tea and energy drinks, China, July 2018
- Occasion of pairing with food could be an opportunity for juice
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- Figure 40: Consumption occasion of juice, China, July 2018
- Carbonated soft drinks are best for entertainment
- Opportunities of cooperating with food delivery services
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- Figure 41: Consumption frequency of soft drinks with the purpose of pairing with food, China, July 2018
Consumption Purpose
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- Demand of boosting energy worthy of attention
- Consumers are indeed dining with soft drinks
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- Figure 42: Consumption purpose of soft drinks, China, July 2018
- Juice can impress consumers through its health benefits
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- Figure 43: Consumption frequency of soft drinks at once a day or more, by selected consumption purposes, China, July 2018
Purchase Triggers for New Products
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- The top three purchase driving forces for soft drinks
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- Figure 44: Purchase triggers for new products, China, July 2018
- Promotion strategies for new launches
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- Figure 45: Selected purchase triggers, by gender and age, China, July 2018
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- Figure 46: Selected purchase triggers, by selected employment, China, July 2018
- Through photo social networking platforms to reach high-income consumers
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- Figure 47: Consumers whose purchase trigger is recommendations on social media, by monthly personal income, China, July 2018
Attitudes towards Consumption
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- In-store promotion with free samples attract 20-24s the most
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- Figure 48: Attitudes towards consumption, China, July 2018
- Figure 49: Attitudes towards consumption, by age, China, July 2018
- Adding sparkling texture would help to gain more market share
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- Figure 50: Attitudes towards consumption, China, July 2018
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- Figure 51: Attitudes towards consumption, by age and gender, China, July 2018
- Most consumers are soft drink label readers
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- Figure 52: Attitudes towards consumption, China, July 2018
Interest in Innovation
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- Probiotics are still in trend especially for the tea market
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- Figure 53: Interests in innovation, China, July 2018
- Naturalness is the key selling point
- High potential in soft drinks with traditional Chinese medicine
Meet the Mintropolitans
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- Innovation attracts Mintropolitans on soft drink consumption
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- Figure 54: Interests in innovation, by consumer classification, China, July 2018
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- Figure 55: Attitudes towards consumption, by consumer classification, China, July 2018
- Clear labelling and dedicated packaging are valued by Mintropolitans
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- Figure 56: Attitudes towards consumption, by consumer classification, China, July 2018
Appendix – Market Size and Forecast
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- Figure 57: Value sales of China’s soft drinks retail market, 2013-23
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Appendix – Market Segmentation
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- Figure 58: Value sales of China’s soft drinks retail market, by sub-categories, 2018
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Appendix – Methodology
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- Methodology
- Fan chart forecast
- Abbreviations
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