With growing health consciousness among Chinese consumers, the demand for low-calorie soft drink has increased rapidly even exceeding its US counterparts in terms of growth rate.
GlobalData reported that low-calorie soft drinks volumes increased at a triple-digit rate in China between 2019 to 2022, while volumes grew by only 10% in the US. In 2023 alone, the consumption volume is expected to grow by 11.3% in China, while in the mature and more developed US market, it was only 2.2%.
In 2022, the US has 17% share of the global market for low-calorie soft drinks sector whereas in China, it was 2.4%.
Dragos Dumitrachi, Consumer Analyst at GlobalData said, “Since 2019, the COVID-19 pandemic has accelerated the health trend in the soft drinks sector across the globe. In 2022, the world saw China and the US clash on multiple fronts. In the soft drinks consumer market, a similar opposing evolution scenario is taking place between the 2 countries.”
The carbonated drink category is the biggest winner when it comes to the growth of low-calorie beverages. Major brands such as Coca-Cola and Pepsi are continuing to invest in low-calorie variants and the trend is picking up globally. In China, low-calorie volumes are forecast to increase by 13.1% between 2022-2023, while the US will record a minimal 1.5% rise in volume.
According to another GlobalData consumer survey done in 3rd quarter 2022, 49% of Chinese consumers said it is essential for the product to be good for physical fitness/health, while only 29% of respondents in the US find it essential when making a purchase.
Dumitrachi concluded that since the pandemic outbreak, Chinese consumers are more concerned with making informative health decisions within the beverage space in comparison to US consumers. Manufacturers in China and the US are set to increase the number of launches to capitalize on this trend throughout 2023.
