April 30, 2024
(press release)
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There is growing awareness of diet and its impact on health among Chinese consumers, given the high prevalence of diabetes in the country. This scenario has prompted the local government to swing into action and introduce a new labeling scheme for sugary drinks. The move could result in the nationwide rollout of the new such labeling regulations for beverages in China, says GlobalData, a leading data and analytics company. Meenakshi Haran, Consumer Lead Analyst at GlobalData, comments: “Chinese consumers have become mindful of the ingredients they consume in order to lead healthier lifestyles, with 78% of shoppers concurring that they pay high/very high attention to the ingredients in the food & drinks they consume#, while 58% admit they are always/often influenced by the impact of a beverage on health before making purchase decisions*. This, in turn, is fueling demand for low-calorie beverages in the country.” “The desire to stay fit and healthy has led to Shanghai’s local government introducing a pilot scheme for sugary beverages to display colored labels indicating the level of sugar content. For instance, RTD beverages with “Grade A” labels should contain non-dairy sugar under 0.5g per 100ml, while trans-fats and saturated fats cannot exceed 0.3g/100ml and 0.75g/100ml, respectively. The new labeling scheme is similar to the UK’s Nutri-score and Singapore’s Nutri-grade labeling initiatives aimed at helping consumers make better choices.” Elyn Gao, Business Development Director, GlobalData China, adds: “Given the rising incidence of diabetes and other lifestyle diseases, Chinese consumers are taking the time to read labels for health information, as affirmed by 62% of respondents that they are always/often influenced by information on sugar content on product labels.+” Haran continues: “Brands are paying attention to this consumer disposition for limiting sugar and calorie intake by launching no/low sugar RTD beverage options in the market. For instance, Boncafe International announced plans to launch its “no added sugar” range of RTD coffee in China.” Gao concludes: “The country’s large youth population is strongly motivated to lead healthier lifestyles amid growing health concerns of high sugar intake, spurring opportunities for low-calorie and no-/low-sugar beverages. Coupled with the government’s initiative to make it easier for consumers to make informed choices, more RTD beverage makers will formulate their products to comply with the influence of the new labeling system. In addition, the success of these measures may well pave the way for a nationwide rollout of similar regulations.” *GlobalData 2023 Q4 Consumer Survey – Asia & Australasia, published in December 2023, 6,000 respondents #GlobalData 2023 Q1 Consumer Survey – Asia & Australasia, published in April 2023, 6000, respondents +GlobalData 2023 Q2 Consumer Survey – Asia & Australasia, published in August 2023, 6,000 respondents
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