Health trend pushes down soft drink market
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.