Health trend pushes down soft drink mar­ket

China Daily (Canada) - - NEWS CAPSULE -

The na­tion’s soft drinks mar­ket shrank be­cause of the eco­nomic down­turn and con­sumers buy­ing bev­er­ages that of­fer health ben­e­fits, an in­dus­try an­a­lyst said.

Sales in the bev­er­age in­dus­try rose only 2 per­cent yearon-year in the first half of 2016, ac­cord­ing to Nielsen data.

“The eco­nomic down­turn led to the growth rate de­cline of the en­tire re­tail in­dus­try, in­clud­ing soft drinks,” said Yan Qiang, a con­sumer goods an­a­lyst at He­jun Con­sult­ing Co. Con­sumers are turn­ing in­creas­ingly to bev­er­ages that of­fer well­ness or func­tional ben­e­fits, he added.

The rev­enue of the Co­caCola Co ex­ceeded $ 21.821 bil­lion in the first half of the year, down 4.6 per­cent yearon-year, the com­pany said in its semi-an­nual re­port.

Rev­enue from the tea drinks busi­ness, how­ever, in­creased 13.6 per­cent as com­pared with the same pe­riod last year, and juice drinks ac­counted for 13.4 per­cent of the en­tire mar­ket share, main­tain­ing sec­ond place in the na­tion’s drinks mar­ket in terms of sales.

Nielsen fore­cast that Chi­nese con­sumers have grow­ing de­mand prod­ucts with health ben­e­fits.

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