China Company Transformation Indicator

Food and Beverage Industry 2024

Leading food and beverage companies in China confronted by challenges of demographic change and health-conscious consumers

China’s food and beverage sector, one of the world’s largest and fastest-growing, was previously driven by a growing middle class, rising disposable income, and urbanization. However, these drivers have shifted towards changing appetites, lifestyles, and health concerns among young and middle-aged consumers.

The 2024 IMD China Company Transformation Indicator (CCTI) reveals that top-ranking companies in the food and beverage sector excel in Early Innovation. Companies quick to respond to changing consumer behavior can adjust their product pipeline to meet new demands and secure market share. Coca-Cola, ranked top in the 2024 CCTI, has succeeded in China by providing flavors catering to the Chinese palate.

The Chinese food and beverage sector is characterized by fierce competition and changing tastes. The leading companies perform well across various factors, from R&D and innovation to China Policy Power and Customer Engagement. Success requires a deep understanding of local tastes, commitment to quality, and continuous innovation.

Food and Beverage companies ranking 2024

How Coca-Cola refreshed itself in the face of changing tastes

Unpredictability in the marketplace can quickly burst the bubble of any company not agile enough to adapt to change. Here’s what you can learn from the beverage giant’s successful mission to update and diversify its product range.

Coca-Cola’s unexpected mix: One chart that unveils future readiness

“I don’t really like whiskey, and I rarely drink soda. But when I saw the cans, I picked one up without hesitation.” It’s shocking to see Coca-Cola making an appearance in the alcohol section of the grocery aisles. For more than 100 years, it has stayed away from alcohol, never allowing an association with any booze.

Case Study

Nespresso: Strategy reset for growth: The youth market (Abridged)

Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certai…

Case Study

Kellogg: Localizing foreign entry mode

For more than 100 years, the Kellogg Company of Battle Creek, Michigan, had sold its breakfast cereals around the globe to consumers. With mounting competition and changing consumer tastes, the company had entered into new segments such as snacks …

How to enter China and win: Lessons from failure

Though some foreign companies struggle in China, prospective entrants are better able than ever before to realistically assess their chances and plan for success, say Karl Ulrich and Lele Sang.