Business / news

Chinese Beverage Brands Build Local Operations to Chase Southeast Asia's $29.7B Soft Drinks Market

Chinese drinks makers are pouring investment into local manufacturing, distribution and product tailoring across Southeast Asia, a soft drinks market forecast to reach $29.7 billion in retail value sales by 2030.

Retail value sales of soft drinks in Southeast Asia are projected to climb to $29.7 billion by the end of the decade, expanding at a compound annual growth rate of 3% between 2025 and 2030, according to Euromonitor International. Capturing that growth is pushing Chinese beverage companies beyond exports and into on-the-ground operations.

Euromonitor said lasting gains depend on adapting the whole operating model rather than just the product. "Sustainable growth requires brands to localise their entire operating model, including distribution partnerships, supply chain infrastructure, manufacturing capabilities, and marketing strategies," the research firm said.

One early example cited is Eastroc Beverage, which notched 9% volume growth in Malaysia's energy drinks category after reworking the packaging and marketing of its flagship Dongpeng drink for local shoppers, with a particular focus on blue-collar workers.

The company paired that positioning with affordable pricing and placement through the convenience retail chain 99 Speedmart, a route to market that reaches high-frequency, price-sensitive consumers.

The mix of local production, distribution tie-ups and product adaptation points to a playbook in which Chinese brands compete on proximity and relevance rather than imports alone across the region's soft drinks aisle.