Falling Chinese demand for carbonated drinks underpins demand for healthy drinks

Chinese market growth for carbonated drinks has slipped to 1% despite the fact that major producers such as Cocoa-Cola and Pepsi invested huge sums on advertisements. The decline has mainly been related to the changing consumer behavior as Chinese people are now becoming more health conscious.

This trend has also been emerging across the globe. For instance, Coca-Cola’s sales were down 3% in the second quarter in 2015 compared to the same period last year.

Since carbonated drinks have been proving unhealthy, Chinese people also started to reduce its consumption, and prefer to use more healthy drinks and plain water. In order to meet the changing consumer preference, Coca-Cola acquired the Xiamen-based Culiangwang from state-owned China National Cereals, Oils and Foodstuffs Corporation for producing drinks made from whole grains. Similarly, Pepsi allied with Jingdong, a Chinese popular on-line retailer, to launch a new vegetable-protein-based beverage.

Commodity Inside anticipates that Chinese beverage manufacturers will have to focus on producing more healthy drinks and offer more choices on juices, tea, vegetables, vitamins and sports drinks. With promotion of such a wide range of healthy products will not only increase the companies’ profits, but will also promote a healthy life style going forward.