China leads global functional drinks growth

Eastroc Beverage, a major domestic energy drink brand by sales volume for three consecutive years, has also benefited from the functional beverage boom, according to the company.

In the first three quarters of 2024, Eastroc's operating revenue surged to 12.56 billion yuan ($1.73 billion), marking a 45.34 percent year-on-year increase. Net profit attributable to the parent company grew 63.53 percent, demonstrating strong profitability.

By the end of the third quarter of 2024, Eastroc had built a nationwide sales network with 2,982 dealer partners and 3.6 million active retail outlets, reaching over 210 million consumers. The company's direct sales channels (online and offline) grew 69.87 percent year-on-year.

Eastroc's functional drink brand, Water Boost, launched in 2023, has become a key growth driver.

The product generated 1.211 billion yuan in sales in the first three quarters of 2024, with 735 million yuan coming in the third quarter alone. Its revenue share rose from 3.58 percent in the first three quarters of 2023 to 9.66 percent in the first three quarters of 2024, reflecting strong consumer adoption.

Meanwhile, Chi Forest, a leading innovator in China's beverage industry, has also recorded strong growth, particularly with its functional drink brand, Alienergy.

Since its 2021 launch, Alienergy's sales surged to 3 billion yuan in 2023, nearly tripling from the previous year, capturing 25 percent of China's electrolyte water market, according to Sina Finance.

With rising health awareness, strong consumer demand and continuous innovation, China is at the forefront of the global functional beverage market.

China's market stands out with an even stronger emphasis on high-protein beverages. The proportion of new functional beverage launches in China featuring "High Protein Source" claims nearly doubled, rising from 31 percent in June 2020 to 59 percent in June 2024.

This shift aligns with growing consumer awareness of health and fitness. In contrast, the share of high-fiber beverages declined from 26 percent to 21 percent, while probiotics drinks dropped from 18 percent to 15 percent, said the report.

Currently, most functional beverages focus primarily on combating fatigue and providing energy boosts. However, as consumer needs diversify — particularly among younger generations — the demand for sleep aids and mood-enhancing drinks is rising. This shift is pushing the functional beverage market into a new phase of growth, where products cater to a broader range of health and wellness needs, said Zhu Danpeng, an independent food and drink analyst.

wangzhuoqiong@chinadaily.com.cn