The Chinese Energy Drink Market is projected to value US$ 16.19 Billion in 2030, according to the report. As consumer awareness regarding health and energy drink supply concerns continues to grow, China has experienced an upsurge in demand for energy drinks. China energy drink market is the world's largest, offering a wide variety of flavors to suit diverse consumer preferences. The energy drink market in China is experiencing rapid growth, driven by factors such as evolving lifestyles, increasing demand for fitness, and a youth-dominated demographic.
Moreover, as more Chinese individuals reduce their consumption of carbonated beverages, energy drinks are emerging as a popular alternative. While energy drinks are traditionally associated with sports activities, their consumption during work hours to enhance performance and focus has gained traction due to the demanding work culture. Interestingly, in China, energy drink consumption is prevalent during work hours and leisure activities, rather than solely being limited to sports. From traditional citrus and berry flavors to unique herbal blends and exotic fruits, China's energy drinks cater to different tastes. These beverages often include herbal ingredients like ginseng, goji berry, and green tea extract, known for their potential health benefits and energy-boosting properties.
China's "fan economy," predominantly driven by social media and the millennial market, presents opportunities for brands to engage with consumers. Digital trends and visual branding play a significant role in targeting millennial consumers. Social media campaigns and innovative marketing strategies generate buzz and excitement around products. International beverage brands have the opportunity to leverage China's digital and fan culture, as seen in Starbucks' integration of WeChat campaigns and adaptability in store formats. As Chinese consumers become more health-conscious, there is an increasing demand for beverages with less processed ingredients and natural flavors. This provides opportunities for brands to create beverages using locally sourced ingredients and flavors that appeal to specific regional tastes. When incorporating natural ingredients and flavors, the benefits should be clearly communicated to resonate with health-conscious Chinese consumers.
China energy drink market is projected to exhibit a CAGR of 8.89% from 2022 to 2030
The health-conscious nature of Chinese consumers, driven by rapid growth and lifestyle changes, has created a promising market for energy drinks. Consumers in China are increasingly seeking an active lifestyle and prioritizing both physical and mental well-being. They are willing to pay more for products that are perceived as healthier and contribute to their overall sense of well-being and happiness. This shift towards healthier choices has also led to an interest in energy drinks.
Chinese consumers are growing more concerned about sugar levels, creating a demand for carbonated soft drink (CSD) options with reduced or no sugar content. In addition to making healthier food and drink choices, Chinese consumers are actively pursuing a more active lifestyle, further contributing to the potential of the energy drink market in China. Growth in this market has been promising over the past five years, and brands are focusing on marketing to regular consumers beyond just specialized athletes.
Looking ahead, the China energy drinks market will be influenced by functional energy drinks, the growth of online retail, and the increasing consumption of energy drinks by women. The market is gaining popularity due to the saturation of the traditional energy drink market. Factors such as the growth of online retail, the rising consumption of energy drinks by women, and government support contribute to the china energy drink market expansion. This presents opportunities for both domestic and international brands to enter and compete in the market, catering to the growing demand for functional energy drinks that enhance energy levels and overall well-being.
Energy shots are projected to be the fastest-growing segment in the energy drinks market in China
Energy Drinks, Energy Shots, and Energy Mixers are the major types in the China energy drinks market.The Chinese government promotion of sports and fitness activities has increased the demand for performance-enhancing energy drinks. Energy shots have become a popular choice, providing a quick and effective energy boost. The growing popularity of online shopping in China has opened new opportunities for energy drink brands to reach consumers, with energy shots being conveniently available for online purchase. Foreign energy drink brands are also gaining popularity in China, particularly energy shots, as they are perceived as more premium and sophisticated compared to local brands, appealing to consumers seeking foreign options.
The urbanization and industrialization in China have increased working hours and stress, leading to a rising demand for products that provide alertness and focus. Energy drinks have become a convenient solution, with brands like Red Bull and Monster successfully building awareness through marketing and distribution networks. Fruit-flavored varieties appeal to Chinese consumers' taste preferences, while the affordable average price of around RMB 5 makes energy drinks accessible to a wide range of consumers.
In the energy drinks market of China, hypermarkets, supermarkets, and mass merchandisers maintain their dominance, even with the increasing growth of online channels
By Distribution Channel, the China energy drinks market is categorized into Hypermarket, Supermarket, mass merchandisers, Convenience stores, Food service outlets, Online, and Others. Hypermarkets, supermarkets, and mass merchandisers dominate the distribution of energy drinks in China, benefiting from their extensive customer base, convenience, and brand awareness initiatives. These channels offer a wide selection of energy drinks, attractively displayed, and promoted, with competitive pricing to drive sales.
So, they currently hold the largest market share, a trend expected to continue due to their convenience, brand awareness, and affordability. While online sales are growing, traditional channels remain dominant. The highly competitive market fosters innovation and product development among established brands. Furthermore, emerging government regulations may impact future marketing and sales strategies for energy drinks in China.
E-commerce boom is reshaping the China energy drinks market, fueled by consumer demand for convenient online shopping through mobile devices and digital payment options. Intense competition prompts innovation, while government regulations influence online marketing and sales. Online platforms offer branding opportunities and targeted marketing, with competitive pricing due to lower operational costs, making online energy drink purchases appealing. Embracing the online distribution channel is crucial for brands to grow their customer base and capture market share.
PET packaging is preferred by energy drink manufacturers in China for its cost-effectiveness, lightweight design, and durability
The packaging type in the China energy drinks market are PET, Glass bottles, Cans, Cartons, and Others. PET allows for easy transportation and storage of energy drinks, commonly sold in bulk. PET's breakage resistance ensures consumer safety, and its recyclability aligns with increasing environmental awareness. Dominating the China energy drinks market, PET packaging is expected to remain dominant despite potential regulations. Ongoing innovation provides opportunities for brands. Versatile, affordable, lightweight, durable, and recyclable, PET packaging will continue to maintain its stronghold in China energy drinks market.
As Chinese consumers prioritize eco-friendly packaging, carton packaging gains preference over PET due to its renewable and recyclable nature. With its portability, enhanced brand image, cost-effectiveness, transit durability, and recyclability, carton packaging is becoming increasingly popular in the China energy drinks market. It helps brands differentiate themselves and attract environmentally conscious consumers in a competitive market. Despite potential regulations, the upward trend of carton packaging is expected to continue, providing innovation opportunities for energy drink brands.
Competitive Landscape
The China energy drinks market is dominated by industry leaders such as Red Bull, Monster Beverage Corporation, Taisho Pharmaceutical Holding Company, Dali Food Group Co. Ltd., Coca-Cola, PepsiCo, Southland Trade Company Ltd., and Hangzhou Wahaha Group Co., Ltd.
In February 2022, Coca-Cola announced that it would be launching a new energy drink called "Fresca Energy" in China. Fresca Energy is a low-calorie, sugar-free energy drink that is made with natural flavors and caffeine. It is designed to appeal to young adults who are looking for a healthier alternative to traditional energy drinks.
Report Scope
This report provides a complete study of the the China Energy Drinks Market.
Type - China Energy Drinks Market break up in 3 viewpoints
- Energy Drinks
- Energy Shots
- Energy Mixers
Distribution Channel - China Energy Drinks Market break up in 5 viewpoints
- Hypermarket, Supermarket, mass merchandisers
- Convenience stores
- Food service outlets
- Online
- Others
Packaging Type - China Energy Drinks Market break up in 5 viewpoints
- PET
- Glass bottles
- Cans
- Cartons
- Others
Company has been covered from 3 Viewpoints:
- Overview
- Recent Developments
- Revenue
Company Analysis:
- Red Bull
- Monster beverage corporation
- Taisho Pharmaceutical Holding Company
- Dali food group co ltd.
- Coca-Cola
- PepsiCo
- Southland Trade Company Ltd.
Table of Contents
Companies Mentioned
- Red Bull
- Monster beverage corporation
- Taisho Pharmaceutical Holding Company
- Dali food group co ltd.
- Coca-Cola
- PepsiCo
- Southland Trade Company Ltd.
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 100 |
| Published | June 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 8.19 Billion |
| Forecasted Market Value ( USD | $ 16.19 Billion |
| Compound Annual Growth Rate | 8.8% |
| Regions Covered | China |
| No. of Companies Mentioned | 7 |
