Chinese consumers are now consuming healthier and more premium beverages because of rising purchasing power and mounting health awareness. Beverages manufacturers have launched the largest range of naturally healthy products to meet the desired demand by consumers. In 2016, NH beverages had observed a particularly interesting trend-100% concentrate juice was not so popular among first-tier cities. Nevertheless, the new improvement made in China that of cold chain logistics system has proved to be advantageous for the category by making it easier to shift.
According to the market research report “Naturally Healthy Beverages in China“, earlier there were only some domestic brands in China where convenience stores were the main distribution channel offering not from concentrate 100% juices. There was an increase in demand and introduction of new players in the category for not from concentrate 100% juices in the country, especially NongFu Spring, which was recently, launched 17.5 degree are the companies, which enjoy strong positions in other soft drinks category. In NH beverages, this phenomenon has created fiercer competition and on the other side more advertising and promotion for NH beverages was taking place known as proliferation of new players. However, the popularity of this category remained limited to the first-tier and second-tier cities.
Guangdong Jiaduobao beverages maintained the leading position in NH beverages and food company (Jiaduobao) with a 15% value share. Still there was a slower growth recorded in the past years. Long history and high awareness of brands among local consumers were the factors from which the company benefited in the end of review period. It was hard for new players to emulate but still they were higher developed and had well-organized distribution network. In 2008, Jiaduobao relocated its headquarters to Beijing. It enhanced its brand awareness and improved distribution system.
Through advertising and promotion efforts conducted by manufacturers has helped the consumers to become health conscious, this is all because of education campaigns and development of popular media channels like online platforms, which has helped to increase the demand for healthier beverages and NH beverages, had become greater acceptance for consumers in China. In the forecast, NH beverages will continue to develop and become popular amongst the Chinese.
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