Summer has always been the peak sales season for the beverage industry, but this year the entire industry has shown a lackluster performance. According to data from the big data company Mars Win Brand CT, from May to August 2026, the sales of beverages decreased by 13.67% year-on-year, and the number of units sold dropped by 14.38%. Analysts in the industry believe that it is difficult for the overall industry to return to the high growth period across all categories as in the past.
A report from “China Business News” on October 17, according to data from Mars Win, in the second quarter of 2026, sales of beverages decreased by 11.8% year-on-year. Specifically, traditional Chinese health water decreased by 20.1%, while carbonated drinks and ready-to-drink fruit juice fell by 12.2% and 14.8% respectively. Only ready-to-drink coffee and unsweetened tea saw increases of 0.35% and 16.1% respectively.
According to Nielsen IQ data, most categories of beverages are in a shrinking phase, with milk drinks, sodas, and others seeing declines of over 20%. Packaged fruit juices, sweetened teas, sports drinks, and others also generally experienced declines ranging from 10% to 20%, with only unsweetened tea maintaining a positive growth rate.
As the beverage industry cools down, the performance of beverage companies also declines. Unilever’s financial report for the first half of 2026 showed a 0.3% year-on-year decrease in revenue from its Chinese beverage business. Revenue from tea drinks declined by 3.5% year-on-year, while juice business revenue declined by 5.5%. Kang Shifu Beverage saw a 0.7% year-on-year increase in revenue for the first half of 2026. However, apart from tea beverages, the other three categories all experienced declines: juice revenue decreased by 13%, which is the largest decline in any category, packaged water revenue dropped by 4.9%, and carbonated and other beverages revenue declined by 2.8% year-on-year.
In response to this trend, renowned strategic positioning expert and founder of Fujian Huace Brand Positioning Consultation, Zhan Junhao, told the media that the lackluster performance of beverages this summer is a result of multiple factors such as weather, consumer expectations, and accumulated industry issues. He believes that this is not a one-time fluctuation, but rather the beginning of the industry moving away from broad growth and entering a phase of structural consolidation, making it difficult to return to the high-growth period across all categories as in the past.
“Sina Finance” also believes that for distributors, the only survival rule for the future is: a business without turnover is not a profitable business.
“China Business News” cited analysis from several industry insiders, stating that the competitive logic of the beverage industry has changed. The competition in the beverage industry is no longer limited to promotional activities during peak seasons but now includes comprehensive competition in product innovation, supply chain efficiency, brand value, and more.