Beverage has always expanded and developed at a significant speed in the Chinese market, both in flavor or brand. Although it seems to be huge enough in China, it is still a small one compared with beverage market in other countries and the industry revenue rate is more than 30% now. Thus, market potential deserves people’s attention and exploitation. The beverage market in China is expected to be the biggest one worldwide.
Huge Market Scale
China’s beverage market is already huge in terms of market scale and diverse players as well as products. In terms of market scale, the value of retail sales in 2015 was 196.1 billion RMB, the growing rate of which was 15.3%. The industry grows, at least, four times bigger than that ten years ago. On the diversification side, both market players and products are devoid of single structure. In the past, the whole beverage market was occupied by Coca-Cola and Pepsi alone. People’s choices are also single, for there are mostly carbonated beverages in the market. But now, besides the two companies, Wahaha, Mater Kong, Uni-president, Nongfu Spring, Danone, Nestle, Huarun Group and others also share and support the market together.
If comparison with beverage markets in other countries and Chinese people’s demand for flavors are taken into consideration, Chinese beverage market shows huge potential.On one hand, in 2012, the consuming of beverage per person in China was on average of 96 liters, far below the data of 263 liters in the United States in the same year and 140 liters in Japan in 2007. Thus, the conclusion can be drawn that Chinese beverage market is still small. On the other hand, consumers’ demand for the products is diverse. People from different countries, ages, genders and classes have different requirements for a beverage. Some may prefer healthy drinks while others may concern more about prices and portability. The companies can design various flavors, packaging and prices to targeted consumers in order to meet their needs.