The China beverage market was valued at USD 206.17 Billion in 2025. The market is expected to grow at a CAGR of 9.90% during the forecast period of 2026-2035 to reach a value of USD 529.91 Billion by 2035.
The beverage market in China is shifting from traditional mass volumes to more fragmented, health-conscious, and digitally influenced consumption patterns, while thriving on innovation and localisation. Consumers are increasingly inclining towards functional and premium beverages, particularly in cities like Hangzhou and Shenzhen. At China’s NHEC 2024 Nutrition & Health Conference, functional beverages were recognized as a key focus for innovation, supported by market data showing that China’s new functional drink product launches surged 58% from 2022 to 2023, and the country’s launch index hit 253 by mid‑2024, more than double the Asia-Pacific average of 11%. This sharp growth reflects rising demand in cities like Hangzhou and Shenzhen, where consumers are opting for premium, health-oriented, digitally connected drinks tailored to local tastes.
Government initiatives are further boosting the China beverage market development. China’s "Healthy China 2030" plan encourages beverage makers to reformulate sugar content and integrate traditional Chinese medicine (TCM) into drink portfolios. In response, brands like Nongfu Spring launched herbal-infused RTD teas that blend ancient ingredients with modern taste profiles. Meanwhile, the Ministry of Commerce's promotion policies are backing new retail models, boosting smart vending machines and social commerce for beverages.
Beverage start-ups are increasingly leveraging AI for flavour modelling and consumer prediction. For example, F5 Future Store uses machine learning to optimise its SKU across urban micro markets. International players are also pivoting their R&D to suit China’s regional palates. PepsiCo and Asahi are introducing osmanthus-infused sparkling beverages, accelerating greater demand in the China beverage market.
Base Year
Historical Period
Forecast Period
Health-conscious consumers are increasingly seeking high-quality ingredients and innovations in packaging for tea, coffee, and health drinks. As a result, this surge has opened up partnership opportunities for global suppliers and private-label manufacturers, further boosting the growth in the China beverage market.
Beverages that are significantly low in sugar, functional and plant based have strongly aligned with the health goals of modern consumers. China has even introduced ‘Nutri-Grade System’ to reduce the sugar content in beverages. For example, Auntie Jenny, a local tea milk brand, modified one of its products to reduce sugar by 31.5% ahead of grading criteria. Hence, B2B suppliers of clean-label ingredients, herbal extracts, and wellness formulations, hence, find an expanding market to partner with local brands and large retail distributors.
E-commerce and live streaming platforms have significantly contributed to the industry value. Hence, B2B companies ought to focus on digital supply chain integration and collaborate with platforms like Alibaba, JD.com, and Douyin to enhance visibility, logistics, and consumer data-driven product innovation.
Compound Annual Growth Rate
9.9%
Value in USD Billion
2026-2035
*this image is indicative*
|
China Beverage Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
206.17 |
|
Market Size 2035 |
USD Billion |
529.91 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
9.90% |
|
CAGR 2026-2035- Market by Region |
Zhejiang |
11.9% |
|
CAGR 2026-2035- Market by Product Type |
Non-Alcoholic Beverages |
10.9% |
|
CAGR 2026-2035- Market by Distribution Channel |
Off-Trade |
11.1% |
Consumers, especially Gen Z and millennial white-collar professionals, are actively choosing drinks that offer more than hydration. Functional beverages with adaptogens, probiotics, and natural nootropics are seeing sharp demand in China beverage market. At the 2024 National Nutrition Week, organized by the National Health Commission, consumer surveys revealed that probiotic-and adaptogen-enhanced drinks, particularly those fortified with mushroom extracts and live cultures, recorded 45% year-on-year growth, with urban white-collar Gen Z and millennial consumers in second-tier cities like Hangzhou and Shenzhen accounting for over 60% of sales. Moreover, domestic beverage brands are also collaborating with wellness technology firms like iCarbonX to personalise drink formulas based on biometrics.
China is leading in AI-driven beverage customisation, globally. From Coca-Cola’s smart vending in Chengdu that suggests drinks based on weather to HeyTea’s AI-flavour testing, consumers are offered hyper-personal experiences, boosting the China beverage market trends and dynamics. These innovations fall under the Ministry of Industry and Information Technology’s digital transformation agenda. In addition, the global “Share a Coke” campaign in spring 2025 enabled mobile-driven personalisation via QR-triggered AI recipe generation, allowing users to craft bespoke drinks with custom names and stickers.
China beverage companies are crafting SKUs specific to regional flavour profiles. Genki Forest’s recently launched jasmine rice drink caters exclusively to Fujian culinary preferences. Supported by local government agricultural initiatives, beverage players are now integrating regional farm produce into recipes, driving both localisation and rural supply chain value. This strategy, although operationally complex, is gaining consumer loyalty and shelf share across regional chains.
Younger Chinese consumers are drinking less alcohol, but they are not abstaining it completely. This shift gave rise to a wave of "alcohol-lite" drinks with lower ABV but high flavour depth. Beverage brands in China like Jiangxiaobai are now launching sparkling rice wines under 3% ABV in vibrant cans. Supported by the National Development and Reform Commission's call to rejuvenate traditional liquor culture, micro-distilleries are springing up across Sichuan and Anhui. From baijiu-infused cocktails to collagen-spiked beers, craft innovation is being localised by mood and social occasion.
As per the China beverage market report, environmental concerns are increasingly shaping purchasing decisions. Chinese consumers have become willing to pay 10% more for sustainably sourced products and ingredients. Brands like Nongfu Spring and Wahaha are trialling plant-based bottles and refill kiosks, while Alibaba-backed Cainiao is partnering with beverage distributors to implement AI-enabled reverse logistics that track carbon impact in real time. Backed by the 14th Five-Year Plan’s circular economy goals, beverage firms are rethinking packaging along with their entire logistics, including electric delivery and smart recycling.
The EMR’s report titled “China Beverage Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product Type
Key Insight: China’s beverage market comprises wide range of products. Bottled water is dominating the industry due to safety trust, while RTD tea and coffee emerge at a fast pace through urban, tech-savvy consumption. Soft drinks hold steady demand among mass buyers, while energy and sports drinks grow in popularity due to fitness trends. Alcoholic drinks like beer and spirits remain popular, but lighter versions and regional craft launches are now gaining traction. Functional beverages are merging wellness, tradition, and convenience.
Market Breakup by Distribution Channel
Key Insight: Supermarkets maintain dominance in the China beverage market revenue share through scale and structured logistics, while the on-trade channel represents the fastest-growing segment via immersive brand storytelling and premium experiences. Convenience stores bridge immediacy and location relevance, particularly near schools and offices. Meanwhile, digital-first approaches are pushing beverage demand through social commerce, livestreams, and vending automation. With growing consumer demand for discovery and experience, brands are investing in hybrid retail formats that combine QR-based customisation, AI upselling, and sustainable delivery integration.
Market Breakup by Region
Key Insight: Regional variations in China’s beverage market are mostly propelled by differing climates, palates, and digital maturity. While Guangdong remains the largest market due to heritage and consumption scale, Zhejiang is growing fast with technology and youth-driven market dynamics. Jiangsu’s industrial backing helps beverage logistics, while Shanghai’s cosmopolitan taste boosts premium imports. Beijing influences branding narratives, and second-tier cities across western China are expanding via e-commerce penetration.
By Product Type, Bottled Water Represents the Dominating Segment in the Market
Bottled water continues to dominate the China beverage industry, driven by safety concerns and health preferences. While major players like Nongfu Spring and C’estbon lead volume-wise, the market observes a growing niche for mineral-enriched and lightly flavoured waters. Consumers in urban areas show preference for premium water sourced from mountain springs. Sustainability trends are pushing players to introduce aluminium and glass bottle variants. The market also benefits from corporate wellness programmes and school hydration policies, pushing daily usage volumes.
Ready-to-drink tea and coffee is the fastest-growing subsegment in the China beverage market, owing to the increasing demand among the young workforce. Brands like Saturnbird and Nestlé are introducing cold brew cans with herbal infusions and no added sugar. Tech-enabled formats, such as self-heating cans and smart cup packaging with temperature indicators, are gaining ground. Local giants like HeyTea are expanding into RTD shelves using e-commerce and O2O channels. The segment is benefiting from urban café culture and China’s historical tea heritage being reinvented in convenient form. Government support for TCM-based product innovation has further sparked interest in chrysanthemum, goji, and ginseng-infused teas.
By Distribution Channel, Supermarkets/Hypermarkets Acquire the Major Share of the Market Revenue
Supermarkets and hypermarkets dominate the beverage market revenue in China, particularly in Tier 2 and Tier 3 cities. Retailers like Sun Art Retail Group and Yonghui are integrating digital tools for inventory and recommendation engines. Beverage brands utilise these channels for mass sampling campaigns, AR-enhanced packaging, and seasonal promotions. Brick-and-mortar setups are also deploying automated restocking systems and cold-chain beverage lockers, enhancing product freshness. Strategic co-branding events in these outlets further engage foot traffic, particularly during festivals. The format’s scale enables bulk promotions and multi-pack deals, making it an efficient outlet for high-turnover SKUs.
The on-trade channel, comprising bars, cafés, restaurants, and event venues, is rapidly accelerating its share in the China beverage market. Premium RTD cocktails, kombucha on tap, and branded water menus are reshaping beverage offerings across foodservice. Recently Starbucks China announced that the company will reduce the cost of several of its iced drinks nationwide by an average of 5 yuan (USD 0.70). Government support for night-time economies in cities like Nanjing and Chengdu has opened new opportunities.
Guangdong Holds the Leading Position in the Market
The Guangdong beverage market experiences continuous growth due to its population density and long-standing beverage culture rooted in herbal and floral infusions. The region’s humid climate drives consistent demand for cooling beverages like RTD teas and functional waters. Beverage R&D centres in Shenzhen are blending wellness with technology creating smart packaging, rapid-infuse sachets, and biometric-integrated vending machines. In November 2023, China Daily (under gov.cn) highlighted that Shenzhen-based beverage brand Heytea introduced a high-protein milk blend specifically tailored for new-style tea beverages. This innovation aimed to capture urban consumers' evolving tastes. The same report noted that as of August 2023, Guangzhou, Shenzhen, and Dongguan each hosted over 6,000 new-style tea outlets, underscoring Guangdong’s leading position in the sector. Government support for TCM and local ingredient use further benefits beverage manufacturers sourcing jasmine, osmanthus, and goji locally. Strategic proximity to Hong Kong also opens cross-border beverage trial opportunities.
Zhejiang’s beverage market is emerging rapidly, spurred by rising disposable incomes and strong digital infrastructure. The provincial government has invested in smart retail pilot zones and supports beverage SMEs through tax incentives and AI research funding. Hangzhou-based beverage brands like Chi Forest are scaling fast with online-to-offline (O2O) logistics. Young consumers in this region ae opting for beverage subscription models and virtual beverage tastings.
|
CAGR 2026-2035- Market by |
Region |
|
Zhejiang |
11.9% |
|
Jiangsu |
10.9% |
|
Shanghai |
XX% |
|
Beijing |
XX% |
|
Others |
XX% |
The China beverage market players like Nongfu Spring and Genki Forest are increasingly investing in R&D activities, brand storytelling, and digital-first distribution. Meanwhile, global players like PepsiCo, Coca-Cola, and AB InBev are localising their offerings aggressively, often through joint ventures or targeted acquisitions. They are aiming for hyper-personalisation by leveraging big data analytics, regional preferences, and functional expectations. Smart vending partnerships, NFT loyalty tokens, and metaverse-ready branding are becoming key differentiators. Moreover, China beverage companies are investing in circular supply chains, carbon-neutral production facilities, and low-impact packaging, especially with the government's 2060 carbon neutrality targets in mind. Tech-forward disruptors like Saturnbird are gamifying consumption, using mobile-first loyalty ecosystems to keep users engaged. Beverage subscription services, rapid delivery tie-ups with Meituan, and social influencer collaborations are redefining the market dynamics.
Nestlé is a world-renowned food and beverage player. The company has a broad portfolio in bottled water, coffee, and health beverages. Headquartered in Vevey, Switzerland, and established in 1866, the company has a strong foothold in the Chinese market targeting the needs of health-oriented and premium beverage drinkers.
Established in 1898 and headquartered in New York, PepsiCo manufactures a wide variety of products such as sodas, bottled water, juices, and energy drinks. The company keeps introducing healthier as well as functional products to suit local profiles.
Established in 1892 and headquartered in United States, Coca-Cola is one of the leading players in the beverage industry globally. Other than its signature cola, the company has much more to offer in its portfolio, such as tea, water, and energy drinks tailored to the local taste and preference.
Established in 1977, Anheuser-Busch InBev SA is a Belgian-based multinational company that has become the largest producer of beer brands worldwide. Anheuser-Busch InBev SA operates in China by targeting the premium and craft beer market with higher-quality alcoholic drinks.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the China beverage market report are Suntory Holdings Limited, Red Bull GmbH, Hainan Laizhi Industry Co., Ltd., and Hangzhou Wahaha Group Co. Ltd., among others.
Explore the latest trends shaping the China Beverage Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on China Beverage Market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the China beverage market reached an approximate value of USD 206.17 Billion.
The market is projected to grow at a CAGR of 9.90% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 529.91 Billion by 2035.
Key strategies driving the market include focusing on digital-first launches, co-developing region-specific SKUs, piloting AI-driven retail formats, enhancing packaging sustainability, and partnering with TCM innovators.
The key challenges are fragmented regional tastes, complex regulatory landscape, volatile ingredient pricing, and short product lifecycles.
The major regions in the market are Shanghai, Zhejiang, Guangdong, Jiangsu, Beijing, and others.
The various product types considered in the market report are alcoholic beverages and non-alcoholic beverages.
The various distribution channels considered in the market report are on-trade and off-trade.
The major players in the market are Nestle S.A., PepsiCo Inc., Coca-Cola Co., Anheuser-Busch Inbev SA, Suntory Holdings Limited, Red Bull GmbH, Hainan Laizhi Industry Co., Ltd., and Hangzhou Wahaha Group Co. Ltd., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product Type |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
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| Competitive Landscape |
|
| Companies Covered |
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