Soft drink consumers in China have demonstrated a growing preference for healthier beverages which is now a key driver for the category, new data shows.
GlobalData, Just Drinks’ parent group, has reported that low-calorie soft drinks grew in volumes by 39.6% annually in 2023 in China as consumers opted for low-sugar drinks.
Meanwhile, fruit-based categories, juice and nectars registered growth rates of 9.6% and 11.8%, respectively, which were considerably higher than carbonates at 1.5%.
The report added that even low-calorie carbonates suffered in the year in China after the World Health Organization (WHO) listed aspartame, often used as a sugar alternative in low-calorie carbonates, as a potential cancer-causing agent.
GlobalData’s report said: “In 2024, the (carbonates) category’s volume growth will slow down to 1.1%, with consumers’ growing health awareness hampering the demand for these sugary beverages.”
Note: pp represents percentage point. Credit: GlobalData
It claimed: “Amplified health awareness following the Covid-19 pandemic pushed more people towards healthier lifestyles and encouraged them to reduce their consumption of sugary beverages. This trend restricted the demand for high-sugar beverages such as fruit powders and carbonates.”
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By GlobalDataIt added that off the back of Covid-19, the economy recovered considerably in 2023. According to China’s Statistics Bureau, its GDP increased by 5.2% annually in 2023. Businesses started operating more freely in light of the relaxation of restrictions and consumers’ purchasing power increased.
Consumer prices increased by 0.2%, with inflation easing from 2% in 2022. As a result of these factors, consumers’ expenditure on beverages increased.
Total soft drinks volumes increased by 5.6% annually in 2023.
Between 2020 and 2023, soft drinks volume sales increased at a CAGR of 6.9%. Sales through online platforms saw “notable growth and played a key role in pushing up volumes amid the COVID-19 pandemic”, according to the data research company.
The report noted: “Iced/RTD tea drinks grew in volume by 18.3% annually, because of the growing health awareness among consumers. No-sugar RTD tea grew considerably because of its perception as a healthy beverage among consumers.”
Soft drinks is the second largest sector in Chinese beverages, accounting for around 176.4 billion litres. It stands behind hot beverages which comprises circa 203.9 billion litres.
Last year, GlobalData estimated that China’s soft-drinks market could hit $5.89bn by 2027 compared to $2.89bn in 2022.
Meanwhile, alcoholic drinks only accounts for 53.4 billion litres of China’s beverage industry.
Alcohol consumption seems to be diminishing in the Asian country as it was revealed that approximately 24.7% less wine was consumed in 2023 compared to 2022.
Preliminary figures estimate 6.8m hectolitres of wine was drunk in China in 2023, making it the ninth-largest wine-consuming nation in the world.
