With more capacity than the standard 500ml drinks and more portable than traditional 1.5L or 2L family packs, 1L beverages are becoming the new trend. "I launched a private-label soda drink last April, and the 1L SKU is currently the bestseller," Mr. Liu, a Shandong supply chain merchant, told Pin Yin Hui. "In 2023, large bottle drinks sold significantly better than the previous year, with 1L sizes selling the best," added a Hunan distributor. A survey of multiple supermarkets reveals that besides common brands like Uni-President and Master Kong, which have offered 1L packs for years, last year saw Eastroc's 1L "Hydrate" electrolyte drink and Nongfu Spring's Oriental Leaf 900ml large bottle. This year, Genki Forest launched a 950ml Alien electrolyte water, and Uni-President introduced a 1L Sea Word electrolyte drink. According to Nielsen data, the "large immediate consumption" segment (600ml-1249ml) saw the fastest sales growth in 2023, confirming the arrival of the "era of large bottles." Big Opportunities In fact, 1L large bottles are not new; some products have been on the market for years. But market feedback indicates that the past two years have marked a new cycle of popularity for 1L sizes. A convenience store owner noted that large bottle drinks have been around for years, but since 2022, sales have been notably better, with 1L sizes selling best. As consumer demand grew, he adjusted his purchasing ratio: "Previously, large bottles accounted for about one-third of total purchases, but last year it was half and half with small bottles. In terms of sales, 1L tea drinks significantly outperform large carbonated drinks and juices." I believe the most important reason for the popularity of 1L drinks and market changes comes from the consumer side. First, in the post-pandemic era, social gatherings have returned to normal, and people are more inclined to "group living" rather than "solitude," so large-format beverages that are easy to share better match social scenarios. But unlike traditional large-format packaging in the foodservice channel, this wave of large-format packaging has a new characteristic—it's not just about making bottles bigger; manufacturers are now observing consumption trends and making optimal choices like new tea drinks do with "medium," "large," and "extra-large" cups. We all know that Coca-Cola and Pepsi once popularized 1.5L or even 2L bottles, becoming "hard currency" on dining tables besides alcohol. But these "extra-large" cups are often not finished in one sitting, and carbonated drinks lose carbon dioxide over time, deteriorating taste and causing waste. Now, the consumption scenarios for large bottles are diversifying. An industry insider said that in the past, large bottle consumption was often limited to dining and family settings. However, with the emergence of 900ml and 1L sizes, large bottles have become suitable for both solo drinking and sharing, and the capacity that can be finished in a day also increases repurchase rates. Second, the 1L design itself promotes usage in more scenarios, such as outdoor sports and camping, where frequent purchases are inconvenient but hydration is needed. It also provides consumers with a sense of "cost-effectiveness." The Insight Research Institute's "2023 China Consumption Trends Insight" points out that over 30% of respondents said they prefer brands that are affordable and cost-effective, with 39% and 52% respectively. Therefore, large bottle drinks are winning over more young people. On many social media platforms, beverage sharing posts frequently appear, with netizens saying, "500ml for 3.5 yuan, 1L for 4.5 yuan—just one more yuan for double the capacity, truly cost-effective." Behind the trend of bigger drinks is increased consumer demand for large-format packaging. The "2022 China Shopper Report" mentions that premiumization, mid-endization, bulk purchasing, and seeking cost-effectiveness have become new consumption trends, "In food and beverage, consumers' bulk purchasing behavior has a more pronounced stimulus on sales." Mr. Liu's natural soda water products also corroborate this trend. According to Mr. Liu, his new 1L natural soda water sells 500-600 boxes per store per month in campus channels. Wang, a Fujian special channel distributor, also said that 1L large bottles have seen a clear rise in the past two years, "Most best-selling products are following this specification." Big Secrets It can be said that bigger bottles are a trend, a result of brands understanding consumer needs. On the other hand, large bottles are also an important marketing strategy for companies to achieve differentiated competition, especially in tea and functional drinks. A typical example is the competition between Jinmailang and Master Kong. At that time, Jinmailang used the "more for the same price" tactic—launching 750ml products alongside regular 500ml bottles at the same price, highlighting the "cost-effectiveness" of large bottles. However, for Jinmailang, 750ml was not the limit. The company later launched a 1L product, even naming it "Two Bottles," still priced at 3 yuan... This aggressive move did grab attention, and Master Kong and other brands followed suit within months. Large bottles not only help products achieve "off-position competition" and build differentiation but also enable small or new brands to "overtake." According to Nielsen's 2022 domestic beverage retail data, in 2022, retail sales in first-tier cities like Beijing, Shanghai, Guangzhou, and Chengdu declined by over 10% year-on-year, while rural areas accounted for over 45% of market share and saw the smallest decline among all declining city tiers. Therefore, cheap, cost-effective large bottles have become a breakthrough for new brands or products to capture lower-tier market share. Six years ago, Eastroc's 500ml bottle, which offered better value and differentiated from competitors, not only helped Eastroc establish a foothold in the functional drink market but remains its core product. In early 2023, Eastroc launched the electrolyte water brand "Eastroc Hydrate," available in 555ml and 1L sizes. It is understood that the 1L pack is currently the largest in the electrolyte drink market, and the company's financial report states it is to "meet different sweating scenarios." Another noteworthy point is that on JD.com's online supermarket, the northeastern well-known beverage brand Qiulin Kvass has sold over 500,000 units of its 1.5L large bottle, standing out among giants like Coca-Cola, Nongfu Spring, and Wanglaoji. According to Pin Yin Hui's compilation, among the 29 large bottle drinks on JD.com with sales exceeding 50,000 units, 14 are in the 600ml-1.25L range, roughly equal to the number of traditional family packs above 1.25L. Among the 1L large bottles, sugar-free tea, coconut water, and electrolyte water are mainstream. This echoes the data from NielsenIQ's recent "2024 China Beverage Industry Trends and Outlook." The report shows that 600ml-1249ml large immediate consumption has become a new growth point. By category, functional drinks (FD) saw a 213% sales increase compared to 2019, and ready-to-drink tea (RTDT) and carbonated soft drinks (CSD) also doubled. Take Nongfu Spring as an example. Its tea products now come in various sizes. Besides Oriental Leaf, Tea Pi launched a 900ml "refreshing" pack in 2019, and last year added two large-format flavors: grapefruit jasmine tea and grapefruit green tea. Before Oriental Leaf, Suntory's oolong tea in the sugar-free tea segment had already released a 1.25L large bottle, which was well received. Nielsen data shows that large-format ready-to-drink tea (excluding milk) has seen continuous growth, especially the 800-1000ml segment, which has outpaced the overall category growth. Beyond sugar-free tea, other sub-segments are also getting bigger. In 2024, Nongfu Spring's first new product launch was a 900ml Carbon roast bottled black coffee; Genki Forest's Alien launched a 950ml new product; and Uni-President's Sea Word 1L was recently released. Going back two years, Mizone launched a 1L product; Want Want milk launched a 1L Tetra Pak; AD calcium milk launched a 750ml box and 1.5L foodservice pack; and Genki Forest also launched a 1.25L large bottle. Clearly, for giants, large bottles can quickly capture lower-tier markets and build competitive moats. For new brands or products, large bottles are also a low-cost marketing method, being visually appealing and enhancing offline presence, while amplifying differentiated selling points and boosting repurchase rates. Recommended Reading