Soft drink refers to beverage with alcohol content lower than 0.5% in China. Soft drink may contain a small amount of alcohol which is the byproduct for dissolving essence, fragrance and flavor, pigment, etc. from ethanol or lactic acid drink.

In the last 30 years, Chinese economy develops rapidly. With the improvement of living and consumption capacity, China soft drink industry has stepped into fast developing period. Most products are aware to consumers while the market is huge. Currently, there are many kinds of soft drinks with many competitive players in the market.

The output volume of soft drink in China was 176.61 million tons in China in 2015, increasing by 5.9% YOY, about 11.8 times that in 2000. The CAGR of the accumulated production volume of soft drink during 2000-2015 is high up to 17.9%, far higher than the growth rate of GDP, which presents good development capability.

The varieties of soft drink grow daily to provide more choice for consumers while the production volume grows. Drinking water accounts for the largest proportion of the soft drink industry while others are fruit juice, vegetable juice, carbonated beverage, tea drinks, etc.

In China, the beverage market can be broken into household and catering parts. CRI  analyzes both the common features and differences of the two parts.

China beverage market is composed of carbonated beverages, fruit and vegetable juice, packaged drinking water, tea drink, protein drink and other drinks. In the long run, drinking water and carbonated beverage occupy the most market share while protein drink, fruit and vegetable juice and tea drink come as the second. However, the competition pattern of soft drink market undergoes great changes as economy develops and life improves in China. Growing concern about health causes increase in demand for healthy tea drinks, protein drinks and fruit & vegetable juice and decrease in demand for carbonated drinks.

Functional drink is a rising star in soft drink market in China. Including sports drinks represented by Mizone and Gatorade, energy drinks such as Red Bull and Lipovitan, and herbal drinks like Wong Lo Kat and JDB.

The consumption of soft drink per capita in China is lower than that in developed countries; that in rural residents is much lower. Perfect competition attracts a large amount of international soft drink giants into Chinese market. Meanwhile, the competition of products transfers to competition of industry chains. Channel resource, especially terminal resources, becomes target of most enterprises.

The output volume of soft drink is expected to remain above 5% in China in the next few years.

Through this report, the readers can acquire the following information:

-Government Policies of Soft Drink Industry in China

-Operation Status of Sub-industries of Soft Drinks in China

-Supply and Demand Status of Soft Drink Industry in China

-Competition Status of the Market

-Major Manufacturers of Soft Drinks in China

-Household and Catering Consumption of Soft Drinks in China

-Factors Influencing Development and Development Trend of Soft Drink Industry

-Advice of Development and Investment in Soft Drink Industry

The Following Enterprises and People Are Recommended to Purchase This Report:

-Soft Drink Manufacturers

-Upstream Enterprises of Essence, Food Coloring and Packaging

-Trading Enterprises of Soft Drinks

-Investors and Research Institutes Concerned About Soft Drink Industry

Table of Contents

1 Basic Situation of Soft Drink Manufacturing Industry in China

1.1 Definition and Classification of the Products

1.1.1 Definition

1.1.2 Major Categories of Products

1.2 Status of Soft Drink Manufacturing Industry in Chinese Economy

1.3 Overview of Industry Chain

1.4 Features of Industry Development

2 Development Environment of Soft Drink Manufacturing Industry in China, 2011-2016

2.1 Economic Environment

2.1.1 China Economy

2.1.2 Global Economy

2.2 Policy Environment

2. 1.1 Policy Overview

2.1.2 Policy Trend

3 Operation Status of Soft Drink Manufacturing Industry in China, 2011-2015

3.1 Industry Status

3.1.1 Supply Status

3.1.2 Demand Status

3.2 Regional Analysis of the Industry

3.2.1 Supply

3.2.2 Demand

3.2.3 Analysis of Major Production Areas

3.3 Import and Export Status of Soft Drink in China

3.3.1 Export

3.3.2 Import

4 Competition Status of Soft Drink Manufacturing Industry in China, 2011-2015

4.1 Barriers to Entry

4.1.1 Capital Barriers

4.1.2 Technological Barriers

4.1.3 Brand Barriers

4.1.4 Sales Channel Barriers

4.2 Competition Structure of the Industry

4.2.1 Upstream Suppliers

4.2.2 Downstream Customers

4.2.3 Competition among Enterprises in the Industry

4.2.4 New Entrants

4.2.5 Substitutes

4.3 Analysis of Major Marketing Channels

4.3.1 Wholesale Market

4.3.2 Supermarkets and Outlets

4.3.3 Convenience Stores

4.3.4 Vending Machines

4.3.5 Catering Places

4.3.6 Entertainment Places

4.3.7 E-commerce

5 Analysis of Industry Chain of Soft Drink Manufacturing Industry in China, 2011-2015

5.1 Upstream

5.1.1 Fruit Planting

5.1.2 Vegetable Planting

5.1.3 Sugar

5.1.4 Packaging industry

5.1.5 Impact of Upstream on Soft Drink Manufacturing Industry in China

5.2 Downstream

5.2.1 Household Consumption

5.2.2 Catering Industry

5.2.3 Entertainment Industry

5.2.4 Impact of Downstream on Soft Drink Manufacturing Industry

6 Sub-industries of Soft Drink Manufacturing Industry in China, 2011-2015

6.1 Carbonated Beverage

6.1.1 Supply Status

6.1.2 Demand Status

6.1.3 Market Competition

6.2 Bottled Drinking Water

6.2.1 Supply Status

6.2.2 Demand Status

6.2.3 Market Competition

6.3 Juice and Juice Drink

6.4 Milk Beverage and Vegetable Protein Drink

6.5 Tea Beverage

6.6 Energy Drink

7 Analysis of China’s Major Soft Drink Manufacturers, 2013-2016

7.1 Hangzhou Wahaha Group Co., Ltd.

7.2 Master Kong Drinks Holding Co., Ltd.

7.3 Weiwei Group Co., Ltd.

7.4 Uni-president China Holdings Ltd.

7.5 Coca Cola

7.6 Pepsi

7.7 Xiamen Yinlu Food Group Co., Ltd.

7.8 Red Bull

7.9 Nongfu Spring Co., Ltd.

7.10 Huiyuan Group Co., Ltd.

7.11 Coconut Palm Group Co. Ltd.

7.12 JDB Group

8 Prospect of Soft Drink Manufacturing Industry in China, 2016-2020

8.1 Factors Influencing Development

8.1.1 Chinese Economy

8.1.2 Government Policies

8.1.3 Major Driving Factors

8.2 Forecast on Market Supply and Demand

8.2.1 Forecast on Supply

8.2.2 Forecast on Demand

8.3 Development Trend of Products

8.3.1 Health Drink

8.3.2 Compound Drink

8.3.3 Energy Drink

8.4 Investment and Development Recommendations

8.4.1 Investment Opportunities in Sub-industries

8.4.2 Regional Investment Opportunities

8.4.3 Recommendations on Investment and Development

Selected Charts

Chart Major Products of Soft Drink Manufacturing Industry in China

Chart Related Policies in China Soft Drink Manufacturing Industry, 2012-2016

Chart Market Size of Soft Drink Industry in China, 2011-2015

Chart Output Volume of Soft Drink in China, 2011-2015

Chart Output Volume of Soft Drink by Variety in China, 2011-2015

Chart Number of Soft Drink Manufacturers in China, 2011-2015

Chart Proportion of Household and Catering Consumption in Chinese Soft Drink Market, 2011-2015

Chart Output Volume of Carbonated Beverages in China, 2011-2015

Chart Sales Revenue of Tea Beverage and Other Soft Drink Manufacturing Industry in China, 2011-2015

Chart Forecast on Output Volume of Soft Drink in China, 2016-2020

Chart Forecast on Sales Revenue of Soft Drink in China, 2016-2020

The post Research Report on Soft Drink Industry in China, 2016-2020 first appeared on CRI Report.

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 CRI, 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. CRI analysis in this regard will be included in the report.

According to CRI, 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).

CRI 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

– Supply and Demand in Soft Drink Industry in China, 2017-2021

The post Research Report on Soft Drink Industry in China, 2017-2021 first appeared on CRI Report.