China's Non-Alcoholic Beverage Industry Market Size Expected to Double in the Decade Leading Up to 2028

Industry Overview

China's non-alcoholic beverage sector is expansive, meeting the needs of its vast population of 1.4 billion people. The increasing demand for food and drinks has been a significant driver of growth since 2018, when the industry generated USD 99.55 billion in revenue. By 2023, this figure had risen to USD 147.56 billion, marking continuous expansion. Projections suggest a 5.75% growth in 2024, pushing revenues to USD 156.05 billion. Looking ahead, the industry is expected to nearly double its 2018 revenue, reaching USD 196.46 billion by 2028, underscoring its sustained upward trajectory.

Figure 1. China’s Non Alcoholic Beverage Industry Revenue Forecast

This revenue growth in China's non-alcoholic beverage industry translates into a less steep but still significant increase in volume. In 2023, the industry's volume reached 143.6 billion liters (L). It is expected to grow by 3.27% in 2024, reaching 148.3 billion L. By 2028, the volume is forecasted to continue its upward trend, reaching 167 billion L. This steady volume growth presents a substantial opportunity for companies to introduce new products and innovations into the market.

Market Segmentation

In 2024, China's non-alcoholic beverage industry is projected to reach a total volume of 148.3 billion L. This total volume of non-alcoholic beverages is divided into four main categories, Bottled Water, Juices, Ready-to-Drink (RTD) Coffee and Tea, and Soft Drinks.

Figure 2. China’s Non-Alcoholic Beverage Industry Segments Market Share (in terms of volume)

• Bottled Water: Bottled water dominates China’s non-alcoholic beverage industry with 117.8 billion L, accounting for 79.4% of the total volume. In a country where concerns over water safety are prevalent, packaged water offers a safe alternative. The segment's expansion is additionally driven by urbanization, increasing disposable incomes, and healthier lifestyles. Premiumization trends are also significant, as consumers are increasingly selecting purified, mineral-enriched, and flavored varieties. In 2024, the average price of bottled water is expected to be USD 0.63/L.
• Juices: Accounting for 2.4 billion L, or 1.6% of the market, juices attract consumers seeking natural and nutritious beverage options. Despite being relatively niche, the segment appeals to health-conscious individuals looking for vitamin-rich drinks made from real fruits. The market is influenced by the popularity of cold-pressed and organic juice varieties, driven by perceptions of freshness and health benefits. In 2024, the average price for juices in China is expected at USD 2.99/L. The higher cost and perishability limit widespread adoption compared to other beverage categories.
• RTD Coffee and Tea: With their convenient and on-the-go consumption appeal, RTD coffee and tea, capturing 10.8 billion L and comprising 7.3% of the market, cater to individuals with busy urban lifestyles. This segment benefits from the rising popularity of coffee culture among younger demographics and offers a variety of flavored and functional options, including energy-boosting and herbal-infused variants that cater to diverse consumer tastes. The category is expanding with innovative packaging formats and promotional campaigns emphasizing convenience and variety. In 2024, average pricing for RTD coffee and teas is expected to reach USD 2.93/L.
• Soft Drinks: Soft drinks maintain popularity with a substantial volume of 17.3 billion L, representing 11.7% of the market, due to their refreshing taste, affordability, and widespread availability. This category encompasses carbonated beverages, flavored sodas, and energy drinks, which continue to draw consumers despite growing health concerns over sugar content. The market's growth is driven by continuous product innovations such as reduced-sugar formulations, natural sweeteners, and functional additives, meeting the evolving consumer demand for healthier choices. The average pricing for soft drinks in 2024 is expected to be USD 2.51/L.

Emerging Players

In the Chinese non-alcoholic beverage industry, several emerging players are making significant strides:

HeyTea (喜茶): HeyTea is renowned for its inventive fruit teas and contemporary beverage selections, achieving rapid growth through a commitment to quality ingredients and distinctive flavor combinations. Its appeal is especially strong among younger urban consumers.

Figure 3. HeyTea Beverage Example

Genki Forest (元气森林): Specializing in sugar-free and low-calorie beverages, Genki Forest has carved out a niche with health-conscious consumers. Their lineup includes flavored water, sparkling drinks, and functional beverages, leveraging online platforms for distribution.

Figure 4. Genki Forest Beverage Example

YoyiC (优悦C): Known for its vitamin-enhanced drinks and functional beverages, YoyiC targets health-conscious consumers looking for added nutritional benefits in their yogurts.

Figure 5. YoyiC Beverage Example

These examples highlight emerging players across various product segments, each capitalizing on trends such as health consciousness, premiumization, and innovative flavors and ingredients to gain traction in China's competitive non-alcoholic beverage market.

In conclusion, the Chinese non-alcoholic beverage market offers promising opportunities for growth and innovation. With significant revenue and volume expected to double by 2028, driven by urbanization and a growing trend towards health-conscious choices, the market presents fertile ground for expansion across segments such as Bottled Water, Juices, RTD Coffee & Tea, and Soft Drinks. Premiumization and the rising demand for healthier options are pivotal factors, prompting brands to innovate with new flavors, functional benefits, and sustainable packaging. Furthermore, utilizing digital platforms for distribution and consumer engagement will be essential for capturing market share and maintaining competitiveness in this dynamic industry landscape. As consumer preferences evolve, companies that can adapt quickly and align with these trends are well-positioned to thrive in China's expanding non-alcoholic beverage market.