The proposed new production lines by Coca-Cola in China are likely to be built in Hubei and Guizhou, with the company investing $75.3m into the project


While Coca-Cola was adversely affected by Covid-19 in the first half 2020, it expects its recovery to continue through to 2021 (Credit: Pixabay)

Soft drinks giant Coca-Cola in China’s decision to build new production lines in the country is a smart one, according to analysts at data analytics company GlobalData.

This follows on from the news that the company intends to build the lines and a new factory in Hubei and Guizhou, investing $75.3m in the project.

While carbonate sales are expected to shrink by $891m in 2020 when compared to 2019, this will be a positive move over the longer term.

This is because carbonate sales are predicted to approach pre-Covid predictions by 2023, and combining this with a high-tech industry that has a large consumer base will put Coca-Cola in a good position as the Chinese economy recovers from the pandemic.

And, while Coca-Cola was adversely affected by Covid-19 in the first half of 2020, it expects its recovery to continue through to 2021 – especially in mainland China.


New Coca-Cola production lines expected to use Internet of Things technology

The new facilities are expected to integrate automation and smart manufacturing through cyber-physical systems and the Internet of Things (IoT).

According to GlobalData, this will allow Coca-Cola to make its packaging process more adaptable, allowing for rapid design changes, reduced waste and increased efficiency.

In addition to this, the IoT processing will allow data-driven real-time analytics to optimise new products and supply chains so they are more efficient and will reduce costs.

Asia-Pacific markets were at the epicentre of the pandemic and experienced some of the harshest lockdowns, but are now rebuilding – which, in turn, requires jobs and investment.

According to GlobalData, it’s become clear that China will have a head start on the economic recovery, which is in part evidenced by increasing demand for aluminium imports as the country catches up on orders that were hindered by the pandemic.


Chinese consumers growing more optimistic than other countries, say GlobalData analysts

Research conducted by the data analytics firm also suggests that Chinese consumers are growing more optimistic than those in other countries.

According to its latest consumer survey, while 34% of Chinese consumers describe themselves as “extremely concerned” about their country’s economic situation, this is considerably less than other leading global economies.

For example, 54% of UK consumers and 55% of US consumers described themselves in the same way.

In addition to this, 36% of Chinese consumers said they felt hopeful nowadays, and 37% said they felt happy.