"Did You Think Low Prices Would Win Them Over?"... Chinese Consumers Shun 'Two Bottles for 1,000 Won' Ultra-Low Price Deals

More Young Consumers Prioritize Health, Driving Preference for Sugar-Free Drinks
Sugar-Free Carbonated Beverages Account for 41.2% in China

The share of sugar-free products in China's carbonated beverage market is growing rapidly. According to China's The Paper on August 5, sugar-free carbonated beverages accounted for 41.2% of total carbonated beverage sales in the first half of this year. This figure has increased by more than 7% compared to two years ago.

Carbonated Beverage. Pixabay

Data from Euromonitor also show that overall carbonated beverage sales in China rose by 4.3% year-on-year. Most of this growth came from sugar-free products, while sales of sweetened carbonated beverages actually declined.

This change is driven by growing health awareness and a spreading perception of the need to reduce sugar intake. Changes in consumption patterns among younger generations have also played a significant role. According to market research firm Nielsen, more than 68% of Chinese consumers aged 18 to 35—the main consumer group—check for 'zero sugar' or 'low sugar' labels first when making a purchase. Leading beverage companies are responding by reducing the share of sweetened carbonated beverages and strengthening their lineups of sugar-free carbonated drinks, electrolyte beverages, and functional drinks.

Price competitiveness is no longer what it used to be either. In China, there is a saying that "the first sip of a 3-yuan cola is worth 2.5 yuan," reflecting high summer demand for carbonated drinks. This year, the trend has changed. Recently, a sweetened carbonated beverage from a major brand was sold at a discount—5 yuan (about KRW 1,050) for two bottles—in some convenience stores in downtown Wuhan, yet there were few buyers. While some have argued that the drop in sweetened carbonated beverage sales is somewhat exaggerated, The Paper reported that the market downturn is undeniable.

The photo is not related to the specific content of the article. Pixabay

The slowdown is also evident in companies' financial results. China Foods, which handles the production and distribution of Coca-Cola products in 19 Chinese provincial-level regions, saw its carbonated beverage business revenue increase from 16.373 billion yuan in 2024 to 16.684 billion yuan last year, but its revenue growth rate fell from 2.5% to 1.9%.

The sugar-free beverage market is expected to continue its growth trend. According to market research firm iiMedia Research, the size of China’s sugar-free beverage market was 61.56 billion yuan (about KRW 13 trillion) last year. It is projected to exceed 81.5 billion yuan (about KRW 17 trillion) by 2028.

This content was produced with the assistance of AI translation services.