China's soda water market, poised for growth, may face a chaotic battle. Recently, I have observed many companies making moves to enter the soda water sector. In May this year, Genki Forest launched its sugar-free "Qi" soda sparkling water; in July, Tsingtao Beer introduced Prince Seaweed Soda Water; in October, Uni-President released its new Qingbo soda water. Additionally, I learned from insiders at Nongfu that in November, Nongfu Spring will also launch a new soda water product...
It is clear that major brands have already begun to enter the fray. In fact, soda water is an imported product. Our earliest understanding of soda water likely comes from American movies, where a handsome protagonist in an elegant restaurant says to the waiter, "Please give me a glass of soda water." However, the foreign term "soda" actually refers to carbonated water, which is not the same concept as soda water. With the strong market growth of sparkling water abroad, the Chinese market has also sensed business opportunities. I have noticed that various types of soda water products are becoming increasingly diverse, and the soda water market is showing signs of recovery. More and more soda water products are imitating trendy sparkling water by artificially adding carbonation.
-01- Soda Water and Sparkling Water: Confusingly Similar, Do You Really Know the Difference?
I asked many friends about their understanding of soda water. Some said soda water is sweet because the first soda water they drank was Mingren. Others said soda water is alkaline and good for health, improving one's constitution. As for sparkling water, some think it's just water with gas, while others believe it's the same as soda water.
In reality, these understandings are incomplete or even mistaken. Strictly speaking, soda water can be understood as an aqueous solution of sodium bicarbonate (commonly known as baking soda), which is weakly alkaline. Sparkling water, on the other hand, is carbonated mineral water, where carbon dioxide is dissolved in water, making it slightly acidic.
So, soda water does not contain gas, while sparkling water does. Natural soda water and sparkling water are formed by unique geographical environments and geological movements, making them very scarce. Most products on the market are artificially produced.
To distinguish between the two, one must first understand four elements:
- NaHCO3 (sodium bicarbonate): The main element of soda water, naturally formed or artificially synthesized.
- CO2 (carbon dioxide): The main element of sparkling water, naturally formed or artificially synthesized.
- Natural mineral water: Pure and natural.
- Purified water: Artificial.
These four elements can combine in various ways to form the main components of most products. Simply put, adding carbon dioxide is the process of artificial carbonation, while adding sodium bicarbonate is the process of adding baking soda. With these elements in mind, I will use a simple formula to help you distinguish:
- Natural soda water = Natural mineral water containing NaHCO3
- Artificial soda water = Natural mineral water/purified water + NaHCO3
- Carbonated soda water = Natural mineral water/purified water + NaHCO3 + CO2
- Natural sparkling water = Natural mineral water with gas (free CO2 content exceeding 250mg/L)
- Artificial sparkling water = Natural mineral water + CO2
According to my research, many products on the market confuse soda water with carbonated water. Carbonated water is an artificially synthesized carbonated beverage made by pressing carbon dioxide into purified drinking water and adding sweeteners and flavors. Strictly speaking, it cannot be called sparkling water or soda water. I have compiled a systematic analysis of products currently on the market that bear the label "soda water" or "sparkling water." If the above formulas are still not helpful, you can directly refer to the chart below:
From the chart, we can see that most "soda water" products on the market are likely similar to sugar-free cola or non-carbonated sweetened water.
-02- Why Did the Old Product Soda Water Catch Fire First, While the Trendier Sparkling Water Remains Unpopular?
Sparkling water is not as bland as plain water, not as sweet as fruit juice, and lacks the intensity of alcohol. Its taste is just right, and in many European and American countries, it has become a staple at home or in restaurants. Soda water, which has dominated American tables for years, is losing favor, while European-style sparkling water is becoming increasingly popular in the United States.
From 2015 to 2017, the U.S. sparkling water market nearly doubled in sales, reaching $8.5 billion. Sparkling water has completely taken off in Europe and America. So why is it that in China, soda water has caught fire instead of sparkling water? I believe there are several reasons.
Market Education is Difficult, and Consumers Have Limited Understanding of Sparkling Water
Sparkling water is often used as a table drink with heavy meat dishes or for mixing cocktails. The first sparkling water product to gain attention in China was Perrier. This small green bottle, often seen with celebrities and fashionistas, has been sought after by high-end consumers and trendy youth.
However, due to its high price and taste that is not widely accepted, sparkling water remains a high-end imported product on shelves, with many consumers not understanding it. The sparkling water market in China has not yet opened up. Currently, Perrier and San Pellegrino still focus on hotels, Western restaurants, and cafes as their core channels in China.
For Safety's Sake, Soda Water Has More Recognition Than Sparkling Water
Sparkling water is popular abroad. Haven't brands noticed the trend? No, on the contrary, they have noticed but are hesitant. Why are brands still focusing on soda water when launching new products?
Currently, there is no unified definition of soda water in the Chinese market. However, because the word "soda" is transliterated as "苏打" in Chinese, and abroad "soda" means carbonated water, many people mistakenly believe that soda water and sparkling water are the same product. Additionally, soda water has some consumer recognition; it has been on the market for years, with familiar brands like Watsons Soda Water, Mingren Soda Water, and Wahaha Soda Water, which have established a certain reputation and consumer base.
So, under the guise of soda water, various carbonated copycat products have appeared, which may not actually be intended as soda water.
Niche Brands Educate the Market, Big Brands Harvest It
If one truly wants to make sparkling water, it will be niche brands that dare to try. Big brands are trapped in their comfort zones and will only react when the market matures, relying on their strong brand effects and market networks to harvest.
However, there are cases where niche brands surpass big brands, such as Jiangxiaobai. In new fields, niche brands can also do well, and one day they may become mainstream.
-03- What Does the Future Hold?
Soda water is not a new product; it has been sold in the Chinese market for many years, but it has always lacked a leader, sitting inconspicuously on supermarket shelves. In my view, the recovery of the soda water market may be short-lived. If the market continues to sell concepts to influence consumers, this path will eventually fail. For soda water, consumer awareness is still stuck on old concepts, while for sparkling water, consumer awareness is almost blank. If the two are conflated, the result may be that neither succeeds.
In recent years, with the popularity of healthy eating, high-sugar beverages have fallen out of favor, and zero-calorie sparkling water has emerged from Europe to become a global favorite. In my view, sparkling water is a potential stock; as a substitute for carbonated drinks, it is almost perfect. How to stand out in the soda water chaos requires deep thinking from brands.
Consumer awareness is upgrading, lifestyles are upgrading, and spending power is upgrading. In the age of information explosion, everything is changing rapidly. Currently, major brands such as Coca-Cola, Uni-President, Wahaha, Nongfu Spring, and Tsingtao Beer have entered the soda water battle. In 2020, I speculate that more big brands like Nestlé, Master Kong, Yili, Pepsi, Budweiser, C'estbon, and Want Want are also likely to prepare to enter the market with new products. At that time, a chaotic battle is inevitable. Whether the sparkling water trend can be seized, I look forward to seeing a standout brand emerge.
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