Market Reports on China presents the report, on “Research Report on Soft Drink Industry in China, 2017-2021”. This industry is in perfect competition because it is not controlled by state-owned capital as in other industries.

In China, soft drinks are natural or artificial drinks with alcohol content of less than 0.5%. Soft drinks can be classified into bottled drinking water, carbonated beverages, fruit and vegetable beverages, tea beverages, vegetable protein and milk beverages, energy drinks and others.

According to during the decade following China joining WTO, China's economy grew rapidly and residents' income increased, driving demand for soft drinks. In 2015, the total production volume of soft drinks in China was 183.45 million tons, increasing by 3.9% YOY. CAGR from 2006 to 2016 was 15.8%, far exceeding China's GDP growth rate. While the production volume was growing, soft drinks have developed into more varieties and product structure has been adjusted. For example, carbonated beverages used to grow fast with a large production volume. However, its shares have been declining in recent years due to unfavorable concerns about the high calorie, poor nutrition and harm to health. By contrast, fruit and vegetable beverages, vegetable protein and milk beverages and energy drinks have been growing fast because of good tastes and rich nutrition.

In China, end consumers are divided into households and catering businesses. There are both similarities and differences between the two markets. analysis in this regard will be included in the report.

According to China's soft drink manufacturers consist of regional leaders as well as national manufacturers such as Coca-Cola, PepsiCo, Wahaha, Master Kong and Tongyi. Due to unbalanced economic development, the landscapes of soft drink markets in high-income first and second tier cities and low-income third and fourth tier cities and rural areas are different. Market shares of national leaders in certain regions might be smaller than that of regional enterprises. This largely depends on product varieties and retail prices. For example, in the third and fourth tier cities and rural areas, soft drinks that sell well are tea beverages priced at CNY 1-1.5 (250ml) and peanut milk priced at CNY 2-3 (500ml). By contrast, in the first and second tier cities, popular products are functional drinks priced at CNY 5-8 (360ml) and juice priced at CNY 3-5 (500ml).

Market research indicates that the sales model of different types of beverage companies vary greatly. National beverage manufacturers are capable of distributing products both online and offline because they invest considerably in advertizing, promotion and channel establishment. In comparison, regional beverage manufacturers rely on conventional offline channels to save marketing costs.

Star products change with time. For example, around 2010, the annual sales revenue of Wong Lo Kat (which was renamed as JDB) herbal tea increased from less than CNY 100 million to over tens of billions of yuan in less than 10 years' time. The sales revenue of Wong Lo Kat is the highest in China's soft drink market. In recent years, energy drinks containing taurine and vitamin have become new hits.

Although China's soft drink industry has been developing fast in the past decade, consumption volume per capita is still lower than that in developed countries and the picture is worse in rural areas. China's soft drink industry is in perfect competition because it is not controlled by state-owned capital as in other industries. Market competition is extremely intense, but vast investment opportunities are also embedded.

It is expected that China's economy will continue to grow at over 6% and Chinese residents' income will continue to increase, promoting the development of the soft drink industry in China.

Readers can obtain the following information or more through this report:
-Economic Environment and Policy Environment in Soft Beverage Industry in China
- Supply and Demand of Soft Drink Industry in China, 2012-2016
- Analysis on Competition in China Soft Drink Market
- Development of and Forecast on Soft Drink Industry in First and Second Tier Cities in China, 2012-2021
- Development of and Forecast on Soft Drink Industry in Third and Fourth Tier Cities and Rural Areas in China, 2016-2021
- Cost Trend of Labor in Manufacturing in China 2014-2016
- Cost Trend of Major Raw Materials of Soft Beverages in China, 2014-2016
- Retail Prices of Soft Drinks in China
- Analysis on Major Soft Drink Manufacturers in China, 2014-2017
- Major Driving Forces and Market Opportunities in Soft Drink Industry in China, 2017-2021
- Threats and Challenges in Soft Drinks Industry in China, 2017-2021

Table of Contents

1 Basic Situation of Soft Drink Industry in China
Definition and Classification of Soft Drinks
Definition
Major Product Categories
Research Methods
Data Sources

2 Development Environment of Soft Drink Industry in China, 2012-2016
Chinese Economy
Global Economy
Policy Environment of Soft Drink Industry in China
Policy Overview
Forecast on Policy Trend

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