In recent years, the consumption market sent out a clear signal that more young consumers started looking for healthy products. Among these products are plant-based beverages.
Hebei Chengde LoLo, one of the Chinese leading beverage manufacturers, released its 2021 annual financial report, showing revenue of 2.524 billion yuan (~USD 392 million), up by 35.65% compared with 2020. The company said that the strong performance was attributed to the growing market demand and the company’s efforts in filling gaps in the F&B market.
Another Chinese leading beverage company, Hebei Yangyuan Zhihui, showed revenue of 6.9 billion yuan (~USD 1.1 billion) in 2021, with a year-on-year growth of 55.99%. The company stated that two factors led to the growth: upgrading sales channels with clearer brand positioning and entering the plant-based milk segment.
The plant-based beverage market in China continues to be “hot”!
The demand for healthy products propelled the booming development of the plant-based beverage market. Starting from 2020, extreme events, such as the pandemic, made people realize the significance of being healthy. For most consumers, living a healthy life and consuming healthy diets are the key to improving personal health. Consumers’ demand for healthy food is growing, and plant-based beverage with healthy formula and ingredients is the best choice.
The reason that the plant-based beverage gained recognition in the market lies in the development of media and sales channels. Enterprises and startups alike managed to educate consumers about plant-based beverage concepts through live streaming, short videos, and social platforms. Brands sold products in online and offline stores, convenience stores, and new retail channels, making new plant-based products highly accessible for consumers.
Young consumers’ curiosity and increasing purchasing power are the major key factors to the rapid growth of the plant-based beverage market in China.
The biggest challenges beverage brands face include price and taste. To cut the price, brands need to improve production technology and upscale the production itself. To improve the taste, companies need to invest more time and innovation in R&D.