3 yuan drinks are disappearing en masse, why can't cheap drinks be bought?

For most people, if you want to ask how much is a bottle of Coke? I believe that many people will blurt out three yuan, but recently the three-dollar drinks are getting fewer and fewer, and in the face of the collective disappearance of three-dollar drinks, what should we think? Why can't cheap drinks be bought?

One or three dollar drinks are disappearing en masse?

According to a report by China's well-off network, the topic of "3 yuan can no longer buy drinks" appeared on the hot search, causing heated discussions among the majority of netizens. Many consumers find that there seem to be fewer and fewer drinks under 3 yuan in supermarkets.

Previously, a notification letter of the price increase of some of Master Kong's drinks had aroused heated discussions among netizens. Among them, medium-sized packaging products (mainly 500ml) rose from 3 yuan to 3.5 yuan, and 1L products rose from 4 yuan to 5 yuan. And the most representative 4 yuan iced black tea, the price has risen by 1 yuan, which has completely shattered the soul harbor of young people.

Master Kong's customer service once said that the price increase was mainly due to the rising cost of raw materials and labor. This price increase is not a phenomenon unique to Master Kong, and earlier in 2023, brands such as Nongfu Spring and Yakult have also raised the prices of some products.

In addition, the price of products of traditional beverage brands such as Coca-Cola, Pepsi, and Uni-President has gradually exceeded "3 yuan", while the product price of more cutting-edge beverage brands is close to 5~7 yuan, and even the price of bottled drinking water is rising.

A bottle of beverage involves raw materials from multiple areas, often including sucrose, PET resin, and cartons. Minsheng Securities Research Report said that in the cost composition of the soft drink industry, sugar accounts for 31%, preform PET accounts for 19%, and cartons account for 18%. For sugary beverages, the ups and downs of the price of white sugar determine the price of the beverage.

Since February 2023, affected by factors such as the international geopolitical situation and high temperature weather, the price of white sugar has risen rapidly. As of the close of trading on November 7, 2023, the price of white sugar futures has reached 6,949 yuan/ton, and the highest point in April 2023 has reached 7,202 yuan/ton, reaching the highest level in recent years.

2. Why can't cheap drinks be bought?

In recent years, it seems that 3 yuan drinks on the market are becoming more and more rare, and this phenomenon has aroused widespread consumer concern.

First of all, in the past consumer market, a drink of 3 yuan a bottle was a psychological price benchmark that was deeply rooted in the hearts of the people. The root cause of this phenomenon lies in the product pricing strategies of industry giants such as Coca-Cola, which fully consider the purchasing power of consumers, market competition, and their own cost-to-profit structure when setting prices. Due to the influence and market share of these big brands, other beverage companies have followed suit, forming a relatively stable low-price beverage range. Consumers are gradually accustomed to using 3 yuan as an important yardstick to measure the cost performance of beverages, which also makes many manufacturers compete fiercely in this price segment.

Secondly, in recent years, the price of raw materials has risen significantly worldwide, including basic raw materials such as water, sugar, fruit juice, tea, coffee, and dairy products needed to make beverages, as well as indirect costs such as packaging materials and transportation costs. In this case, it is becoming increasingly difficult for many beverage manufacturers to maintain the original price position of 3 yuan. At the same time, with the increase in labor costs, environmental protection policies and other factors, the overall increase in production costs makes the low-cost operation model represented by "3 yuan drinks" unsustainable. Therefore, objectively speaking, the rise in the price of raw materials has directly impacted the living space of 3 yuan drinks, causing it to gradually decrease or even disappear in the market.

Third, rising raw material prices are not the only reason for the disappearance of the 3-dollar drink. In fact, the change in psychological expectations has largely driven the decision of beverage companies to increase prices. With the gradual increase in consumers' demand for health and quality, beverage companies need to invest more funds in R&D and brand building to meet the needs of the market. These investments need to be rewarded by increasing the price of the product. At the same time, with the trend of consumption upgrading, consumers' sensitivity to prices is gradually decreasing, which provides room for enterprises to raise prices. As a result, more and more beverage companies are starting to adjust their pricing strategies to improve their profit margins.

Fourth, although consumers are more receptive to beverage prices and are willing to pay higher prices for higher quality or more distinctive products, this does not mean that unlimited price increases will not have a negative impact. If frequent or large price increases exceed the psychological tolerance of consumers, it may cause some consumers to return to more affordable options or reduce the frequency of purchases, thus triggering a short-term or long-term decline in beverage market demand. In this case, while pursuing profit maximization, enterprises also need to balance market demand and consumer satisfaction, and minimize the impact of rising costs on terminal selling prices through refined management, innovative R&D and supply chain optimization.