"Consumers' personal interests, various food scares as well as rising health
issues such as obesity, are fuelling demand for innovations in ingredients,
flavours and packaging. Mintel research shows that ingredients that can
provide added health benefits could broaden the appeal of CSDs."
Eileen Ngieng, Senior Research Analyst
Table of Contents
Introduction
- Definition
- Methodology
- Abbreviations
Executive Summary
- The market
- Figure 1: Volume sales of carbonated soft drinks in China (bn litres),
2008-18
- Figure 2: Value sales of carbonated soft drinks in China (RMB bn), 2008-18
- Companies and brands
- Figure 3: Leading carbonated soft drinks companies, % market share, by
volume, 2013
- The consumer
- Consumption of carbonated soft drinks
- Figure 4: Frequency of drinking carbonated soft drinks in the last six
months, January 2014
- Motivation for drinking carbonated soft drinks
- Figure 5: Motivation of drinking carbonated soft drinks, January 2014
- Channels from where consumers buy carbonated soft drinks
- Figure 6: Channels from where consumers buy carbonated soft drink, January
2014
- Important factors of media and communication when buying carbonated soft
drinks
- Figure 7: Important factors of media and communication when buying
carbonated soft drinks, January 2014
- Willingness to pay more for new features and product innovations
- Figure 8: Willingness to pay more for new features and product
innovations, January 2014
- General attitudes towards carbonated soft drinks
- Figure 9: General attitudes towards carbonated soft drink, January 2014
- Key issues
Issues and Insights
- How can brands cater to concerns over sugar content?
- The facts
- The implications
- Figure 10: Brands experiment around fat-blocking CSD, 2012
- How can brands position functional CSDs to bring engagement with
health-conscious consumers?
- The facts
- The implications
- Figure 11: CSD brands that have body cooling functions, Japan and Taiwan,
2012-13
- Figure 12: CSD brands containing vitamins, June 2013
- Figure 13: Products launched in China with herbal ingredients, 2011-13
- Figure 14: Products launched in other countries with herbal ingredients,
2013-14
- How can positioning as energy booster brings new relevance to CSD and
compete with energy drinks?
- The facts
- The implications
- Figure 15: Brands positioning CSD as energy booster, 2012-13
- How can brands tackle trust issues more efficiently?
- The facts
- The implications
- Figure 16: Print screen of beverage benefits from China's Coca-Cola website
- Could re-naming or re-positioning be the answer to the unhealthy image?
- The facts
- The implications
- Figure 17: Huiyan sparkling juice drink fusion use "added bubbles" instead
of carbonated labelling, China, 2011
Trend Applications
- Transumers
- Make it Mine
- Figure 18: Beverage concentrates in Australia and UK, 2014
- Sense of the Intense
Market Size and Forecast
- Key points
- Market size
- Figure 19: Growth trends in China's carbonated soft drinks market, total
volume (bn litres) and total value (RMB bn), 2008-13
- Low per capita consumption expected to increase; but room to grow is
fairly limited
- Figure 20: Total market volume consumption per capita (population) of
carbonated soft drinks, by country, 2013
- CSD is fourth in both volume and value sales in the soft drinks retail
market
- Figure 21: Volume (bn litres) and value (RMB bn) retail sales of soft
drinks, China, 2013
- CSDs losing out to other soft drinks between 2010 and 2013
- Figure 22: Retail value sales (RMB bn) and their percentage of share of
soft drinks, China, 2010 versus 2013
- NPD activity increasing but is significant below that of juice drinks
- Figure 23: Share of NPD activity in the soft drinks market, by category,
2009-13, China
- Market forecast
- Figure 24: Volume sales of carbonated soft drinks in China (bn litres),
2008-18
- Figure 25: Value sales of carbonated soft drinks in China (RMB bn), 2008-18
- Methodology
- Market drivers
- Increasing outdoor activities lead to improved CSD demand
- Affordability keeps CSD competitive
- Figure 26: Average retail price per litre, by beverage category, China,
2013
- Coke and Pepsi brands dominates CSD market
- Plasticizer scandal causes shift to CSDs to a lesser degree
- Market barriers
- CSDs often perceived as unhealthy
- Increase in raw materials costs (sugar and aluminium)
- Competitive soft drinks market
- Seasonal, regional and festival-driven consumption
Market Segmentation
- Key points
- Retail sales outpace non-retail sector
- Figure 27: Total volume and value sales of carbonated soft drinks in
China, by retail and others*, 2008-13
- Standard cola variant still long-term favourite; fruit flavoured CSDs
seems promising
- Figure 28: Frequency of drinking carbonated soft drinks in the last six
months, January 2014
- Figure 29: New product launches by top 10 flavours in the China carbonated
soft drinks, 2011-13
Market Share
- Key points
- Coca-Cola Company and PepsiCo still dominate the market
- Figure 30: Percentage market share of leading carbonated soft drinks
companies in retail volume and retail value, 2011-13
- Smaller brands remains regional due to distribution and flavour factors
Who's Innovating?
- Key points
- Brands play safe with 61.4% NPD launch under "New Packaging"
- Figure 31: New product launches by launch type in the China carbonated
soft drinks market, 2011-13
- Expanding smaller pack sizes varieties to benefit both brands and consumers
- Figure 32: Top 10 new product launches by pack sizes in the China
carbonated soft drinks market, 2011-13
- NPD claims have yet to fulfil consumer demand
- Low/no/reduced calorie plus environmentally friendly packaging are leading
claims
- Figure 33: New product launches by top 10 claims in the China carbonated
soft drinks market, 2011-13
- Figure 34: China Coca-Cola with environmentally friendly packaging, 2013
- Functional claims are overlooked in CSDs
- Figure 35: New product launches by functional claims in the China
carbonated soft drinks market, 2011-13
- Carbonated salty soda water unique functional positioning popular in
Shanghai
- Figure 36: Carbonated salty soda water which is unique in China
- Fruit flavours seem most promising as consumers resonate with its taste
- Fruit flavoured CSDs are popular launches
- Figure 37: New product launches by top 10 flavours in the China carbonated
soft drinks, 2011-13
- Exotic fruit flavours CSD
- Figure 38: Products launched in other countries with exotic fruits
flavours, 2012-13
- Fruits combination flavours CSD
- Figure 39: Products launched in other countries with fruits combination
flavours, 2012-14
- Kvass drink (ie malt drink) gaining popularity
- Figure 40: China CSD containing malt (also known as kvass drink), 2012-13
- Kvass drink helps Wahaha to gain share in CSD market
- Figure 41: Advertisement of Wahaha's kvass drink on Wahaha's official
website
- Marketing campaign innovations
- Coca-Cola in China
- Coca-Cola on signing popular Korean star Kim Soo Hyun
- Coca-Cola 2014 TV campaigns focus on people connection
- Coca-Cola China utilises bottle customization with the aid of Weibo to
boost online awareness
- Coca-Cola globally
- Coca-Cola's emphasis on "happiness" in international campaign
- Coca-Cola "The Ahh Effect" campaign to reach more teens
- Pepsi in China
- Pepsi appointed MoMo Wu as new brand ambassador
- Pepsi collaborated with WeChat for customization people connection
- Pepsi globally
- Pepsi continues its successful "Bring Happiness Home" thematic campaign
Companies and Brands
The Consumer - Consumption of Carbonated Soft Drinks
- Key points
- Frequency of drinking carbonated soft drinks in the last six months
- Figure 42: Frequency of drinking carbonated soft drinks in the last six
months, January 2014
- Standard variant remains the long-term favourite flavoured CSDs
- 20-39-year-olds males and higher income/education groups are heavy CSD
drinkers
- Married people tend to drink less due to health concerns over family
The Consumer - Motivation for Drinking Carbonated Soft Drinks
- Key points
- Motivation for drinking carbonated soft drinks
- Figure 43: Motivation for drinking carbonated soft drinks, January 2014
- Unique fizzy feeling the top motivational factor
- Busier and on-the-go lifestyles encourage impulse purchasing
- Tackling high interest in flavour innovation more efficiently
- Ingredients that aid in functional benefits will help growth of CSD
market, especially towards more mature crowds
- Figure 44: "To give me an energy boost" motivation factor for drinking
carbonated soft drinks, by demographics, January 2014
- Emotional attachment elements are more important for heavy users
The Consumer - Channels From Where Consumers Buy Carbonated Soft Drinks
- Key points
- Channels where consumers buy carbonated soft drink
- Figure 45: Channels from where consumers buy carbonated soft drink,
January 2014
- Supermarkets are the most visited sales channel
- Retail channels benefit from wide presence and competitive prices
- Different demographics embrace different retail channels
- Partnership with other foodservices to capture growing trend for eating out
- Higher monthly household income consumers dominate foodservice purchases
- Faster-pace cities embrace convenience retailing; slower-pace cities
prefer family-oriented channels
The Consumer - Important Media and Communication at Purchase
- Key points
- Important factors of media and communication when buying carbonated soft
drinks
- Figure 46: Important factors of media and communication when buying
carbonated soft drinks, January 2014
- Traditional point of sales methods most effective ways for try out
- Appealing promotions can go beyond price
- New product trials are a good platform to test the market and target
females
- However, social/digital media are increasingly influential
- Word-of-mouth from trusted people scores highly
- Consumers less likely to embrace digital media in health-related purposes
- Conventional media is the best way to reach widest audience
- TV remains the widest-reaching media channel but may not be engaging enough
- On the other hand, advertisements in print media are the least influential
- Outdoor media less charming to consumers
- Content advertising to engage users
- Coca-Cola's efforts on people connection and asserting "happiness" value
- Heavy and light users react differently towards different media
The Consumer - Willingness to Pay More for Different Innovations
- Key points
- Willingness to pay more for new features and product innovations
- Figure 47: Willingness to pay more for new features and product
innovations, January 2014
- Consumers want ingredients benefits without compromising taste
- A trend that is observed across most food and beverage categories
- Brands need to uplift ingredients for young heavy CSD users
- Traditional Chinese Medicine appeals more to older age groups and higher
earners
- Figure 48: Willingness to pay more for new features and product
innovations for "Added nourishing Chinese medicine ingredients (eg gouji
berry, red dates)", by demographics, January 2014
- How can brands promote TCM- CSDs to young heavy CSD users?
- Customization and fruit flavour CSD innovation seems more promising
- Packaging innovation have potential to tap into
- Innovative pack design to capture various usage occasions
- Figure 49: Coca-Cola's innovative CSD pack designs, China, 2013
- Limited, customized and localized designs are best associated with themes
and activities
- Figure 50: Pepsi throwback (vintage) design available through amazon
china, 2013
The Consumer - General Attitudes Towards Carbonated Soft Drinks
- Key points
- General attitudes towards carbonated soft drinks
- Figure 51: General attitudes towards carbonated soft drink, January 2014
- Rationalizing CSD contents to build consumers consumption confidence
- Taking cues from others' product labelling
- Figure 52: The Clever Veg Co. All 5 Of Your 5 A Day Indian Balti Vegetable
Meal, UK, 2013
- Figure 53: Labelling that could do justice for CSD
- Redefining "young" to capture older age group consumers
- Potential in children and the elderly
- Smaller pack sizes for children's CSDs
- Figure 54: CSD products launched in China targeted to children, 2008-12
- Building trust and catering to specific needs to appeal to elderly
- Japan successfully targeting 30s and 40s and can extend to the elderly
market
- Figure 55: Japan CSD targeting adults at their 30s and 40s, 2012-14
- Figure 56: Energy and cordial drinks products targeted for more mature
group, UK, 2013
- Advertisements of CSDs are succeeding in differentiating themselves
- CSD products could do better in penetrating occasions' usage
- Smaller pack sizes with catchy labelling and innovative convenience
features to appeal to on-the-go consumers
- Continuous strong presence at hot spots to retain on-the-go consumers
- CSD is good for socializing
- The "sweet factor" in CSDs is one major concern
- Natural sweeteners to boost appeal of CSD
- Local CSD brands lose out to international brands on distribution and are
niche in flavour
- Keeping options open to fit individual preferences
Appendix - Market Size and Forecast
- Figure 57: Total value sales of carbonated soft drinks (RMB bn), 2008-18
- Figure 58: Total volume sales of carbonated soft drinks (m litres), 2008-18
Appendix - Market Segmentation
- Figure 59: Total retail value sales of carbonated soft drinks (RMB bn),
2008-18
- Figure 60: Total others* value sales of carbonated soft drinks (RMB bn),
2008-18
- Figure 61: Total retail volume sales of carbonated soft drinks (m litres),
2008-18
- Figure 62: Total others* volume sales of carbonated soft drinks (m
litres), 2008-18
Appendix - Carbonated Soft Drinks Had in the Last Six Months
- Figure 63: Carbonated soft drinks had in the last six months, January 2014
- Figure 64: Carbonated soft drinks had in the last six months, January 2014
- Figure 65: Most popular carbonated soft drinks had in the last six months
- Any, by demographics, January 2014
- Figure 66: Next most popular carbonated soft drinks had in the last six
months - Any, by demographics, January 2014
- Figure 67: Most popular carbonated soft drinks had in the last six months
- Standard cola, by demographics, January 2014
- Figure 68: Next most popular carbonated soft drinks had in the last six
months - Standard cola, by demographics, January 2014
- Figure 69: Most popular carbonated soft drinks had in the last six months
- Low or no calorie/diet cola, by demographics, January 2014
- Figure 70: Next most popular carbonated soft drinks had in the last six
months - Low or no calorie/diet cola, by demographics, January 2014
- Figure 71: Most popular carbonated soft drinks had in the last six months
- Lemon-flavoured carbonated soft drinks, by demographics, January 2014
- Figure 72: Next most popular carbonated soft drinks had in the last six
months - Lemon-flavoured carbonated soft drinks, by demographics, January 2014
- Figure 73: Most popular carbonated soft drinks had in the last six months
- Orange-flavoured carbonated soft drinks, by demographics, January 2014
- Figure 74: Next most popular carbonated soft drinks had in the last six
months - Orange-flavoured carbonated soft drinks, by demographics, January 2014
- Figure 75: Most popular carbonated soft drinks had in the last six months
- Others flavoured carbonated soft drinks, by demographics, January 2014
- Figure 76: Next most popular carbonated soft drinks had in the last six
months - Others flavoured carbonated soft drinks, by demographics, January 2014
- Figure 77: Carbonated soft drinks had in the last six months, by most
popular motivation of drinking carbonated soft drinks, January 2014
- Figure 78: Carbonated soft drinks had in the last six months, by next most
popular motivation of drinking carbonated soft drinks, January 2014
- Figure 79: Carbonated soft drinks had in the last six months, by most
popular motivation of drinking carbonated soft drinks, January 2014
- Figure 80: Carbonated soft drinks had in the last six months, by next most
popular motivation of drinking carbonated soft drinks, January 2014
- Figure 81: Carbonated soft drinks had in the last six months, by most
popular channels from where consumers buy carbonated soft drink, January 2014
- Figure 82: Carbonated soft drinks had in the last six months, by next most
popular channels from where consumers buy carbonated soft drink, January 2014
- Figure 83: Carbonated soft drinks had in the last six months, by other
channels from where consumers buy carbonated soft drink, January 2014
- Figure 84: Carbonated soft drinks had in the last six months, by most
popular channels from where consumers buy carbonated soft drink, January 2014
- Figure 85: Carbonated soft drinks had in the last six months, by next most
popular channels from where consumers buy carbonated soft drink, January 2014
- Figure 86: Carbonated soft drinks had in the last six months, by other
channels from where consumers buy carbonated soft drink, January 2014
- Figure 87: Carbonated soft drinks had in the last six months, by most
popular important factors of media and communication when buying carbonated
soft drinks - Rank1, January 2014
- Figure 88: Carbonated soft drinks had in the last six months, by next most
popular important factors of media and communication when buying carbonated
soft drinks - Rank1, January 2014
- Figure 89: Carbonated soft drinks had in the last six months, by most
popular important factors of media and communication when buying carbonated
soft drinks - Rank2, January 2014
- Figure 90: Carbonated soft drinks had in the last six months, by next most
popular important factors of media and communication when buying carbonated
soft drinks - Rank2, January 2014
- Figure 91: Carbonated soft drinks had in the last six months, by most
popular important factors of media and communication when buying carbonated
soft drinks - Rank3, January 2014
- Figure 92: Carbonated soft drinks had in the last six months, by next most
popular important factors of media and communication when buying carbonated
soft drinks - Rank 3, January 2014
Appendix - Motivation of Drinking Carbonated Soft Drinks
- Figure 93: Motivation of drinking carbonated soft drinks, January 2014
- Figure 94: Most popular motivation of drinking carbonated soft drinks, by
demographics, January 2014
- Figure 95: Next most popular motivation of drinking carbonated soft
drinks, by demographics, January 2014
- Figure 96: Motivation of drinking carbonated soft drinks, by carbonated
soft drinks had in the last 6 months, January 2014
Appendix - Channels From Where Consumers Buy Carbonated Soft Drink
- Figure 97: Channels from where consumers buy carbonated soft drink,
January 2014
- Figure 98: Most popular channels from where consumers buy carbonated soft
drink, by demographics, January 2014
- Figure 99: Next most popular channels from where consumers buy carbonated
soft drink, by demographics, January 2014
- Figure 100: Other channels from where consumers buy carbonated soft drink,
by demographics, January 2014
Appendix - Important Factors of Media and Communication When Buying Carbonated Soft Drinks
- Figure 101: Important factors of media and communication when buying
carbonated soft drinks, January 2014
- Figure 102: Most popular important factors of media and communication when
buying carbonated soft drinks - Rank 1, by demographics, January 2014
- Figure 103: Next most popular important factors of media and communication
when buying carbonated soft drinks - Rank 1, by demographics, January 2014
- Figure 104: Most popular important factors of media and communication when
buying carbonated soft drinks - Rank 2, by demographics, January 2014
- Figure 105: Next most popular important factors of media and communication
when buying carbonated soft drinks - Rank 2, by demographics, January 2014
- Figure 106: Most popular important factors of media and communication when
buying carbonated soft drinks - Rank3, by demographics, January 2014
- Figure 107: Next most popular important factors of media and communication
when buying carbonated soft drinks - Rank3, by demographics, January 2014
Appendix - Willingness to Pay More For New Features and Product Innovations
- Figure 108: Willingness to pay more for new features and product
innovations, January 2014
- Figure 109: Willingness to pay more for new features and product
innovations - Customized pack design, by demographics, January 2014
- Figure 110: Willingness to pay more for new features and product
innovations - Localized pack design, by demographics, January 2014
- Figure 111: Willingness to pay more for new features and product
innovations - Innovative pack design, by demographics, January 2014
- Figure 112: Willingness to pay more for new features and product
innovations - Limited edition, by demographics, January 2014
- Figure 113: Willingness to pay more for new features and product
innovations - Added nutritional benefits, by demographics, January 2014
- Figure 114: Willingness to pay more for new features and product
innovations - Added nourishing Chinese medicine ingredients, by demographics,
January 2014
- Figure 115: Willingness to pay more for new features and product
innovations - Using natural ingredients, by demographics, January 2014
- Figure 116: Willingness to pay more for new features and product
innovations - Innovative flavours I've never seen, by demographics, January
2014
- Figure 117: Willingness to pay more for new features and product
innovations - Customizing the flavour of my drink, by demographics, January
2014
- Figure 118: Willingness to pay more for new features and product
innovations - Other exotic fruit flavours, rather than orange or lemon, by
demographics, January 2014
Appendix - General Attitude Towards Carbonated Soft Drink
- Figure 119: General attitude towards carbonated soft drink, January 2014
- Figure 120: Agreement with the statement 'The advertisements of carbonated
soft drinks are too similar to differentiate brands from each other', by
demographics, January 2014
- Figure 121: Agreement with the statement 'Manufactures of carbonated soft
drinks should provide more information on the pack', by demographics, January
2014
- Figure 122: Agreement with the statement 'Carbonated soft drinks are more
suitable for the younger generation than for other age groups', by
demographics, January 2014
- Figure 123: Agreement with the statement 'Carbonated soft drinks are good
to have on the move', by demographics, January 2014
- Figure 124: Agreement with the statement 'Carbonated soft drinks are
suitable for drinking when socializing with others', by demographics, January
2014
- Figure 125: Agreement with the statement 'Carbonated soft drinks of
Chinese brands taste just as good as those of international brands', by
demographics, January 2014
- Figure 126: Agreement with the statement 'Carbonated soft drinks in glass
bottles taste better than in other packages', by demographics, January 2014
- Figure 127: Agreement with the statement 'Low-calorie carbonated soft
drinks taste better than regular products', by demographics, January 2014
- Figure 128: Agreement with the statement 'Carbonated soft drinks available
are too sweet', by demographics, January 2014
- Figure 129: Agreement with the statement 'The artificial sweeteners in
low-calorie carbonated soft drinks have more negative impact on health than
sugar in regular products', by demographics, January 2014
- Figure 130: Agreement with the statement 'I would like to see more
carbonated soft drinks in smaller pack sizes that can be drunk in one go', by
demographics, January 2014
