Young Chinese with money
Not only has China’s young population gotten more money in their hands, they also prove willing to spend their rising income. Young Chinese consumers under the age of 35 are characterized by a curiosity and openness towards new products and the desire for a modern lifestyle.
Those young Chinese who have grown up during the past 20 years of economic growth, is today contributing to the strong positioned retail sector in China. This is also mirrored in the food industry, where, for example, consumers in the soft drinks market are mainly young Chinese under the age of 35.
New consumer lifestyle
The younger generation of Chinese is changing consumption patterns, and their purchasing power has grown significantly compared to the generation before them. Marketing campaigns are now more commonly aimed towards this young segment of consumers, because it is expected that they will be main contributors of the future growth.
Growing health trends
The young Chinese are also at the same time becoming more aware of product quality and general health. As a consequence of the rising prosperity, China is now experiencing many problems with lifestyle diseases. Many consumers are therefore starting to buy new and healthier soft drink options, such as sugar free sodas and ice teas. According to Euromonitor, this trend will have a particular positive effect on the market for fruitjuice and bottled water.
Still undeveloped markets
The demand for Ready-To-Drink (RTD) products, such as ice tea, ice coffee and smoothies, is expected to gain market shares from regular soft drink products in the coming years. The RTD market is currently relatively underdeveloped, as few producers offer healthier options within this category.
Growth stemming from emerging markets
Various market observers agree that the Chinese soft drink market will develop quickly in the coming years, with a rise in sales of 45, 5% until 2014. Same development is observed in various other sectors, where foreign companies have begun to exploit the opportunities that the young Chinese consumers offer.
