Chongqing - On July 14, Ms. Lin entered a Lawson convenience store in central Chongqing, drenched in sweat, and grabbed a bottle of coconut water. Just a day before, the Chongqing Meteorological Bureau issued an orange alert, forecasting temperatures reaching up to 41°C in the coming days.
She’s not alone. As the heat rises, more Chinese consumers are turning to coconut water, a trend booming on Xiaohongshu, a popular Chinese social media and e-commerce platform, where its refreshing taste and health benefits are widely praised.
On July 16, a search for "coconut water" on Xiaohongshu revealed numerous discussions about different brands and their pros and cons. (Photo/ Vivian Yan)
"It helps replenish electrolytes," Lin explained. "I started drinking it during pregnancy because it's additive-free and safe. Now, even after giving birth, it's still my go-to drink."
Among the most popular brands is IF, a Thai-born company headquartered in Singapore, which has quickly risen to prominence in China.
On July 14, IF coconut water went on sale at a Lawson convenience store in Yubei District, Chongqing. (Photo/Zheng Ran)
On July 14, two types of pure coconut water, including one from the IF brand, were seen on the shelf at a Lawson convenience store in Yubei District, Chongqing. (Photo/Zheng Ran)
On June 30, IFBH Limited, the parent company of IF Coconut Water, officially listed on the Hong Kong Stock Exchange at HK$27.8 per share, soaring 57.19% at opening. By midday, the company's market cap reached approximately HK$10.67 billion.
Coconut water's appeal lies in its natural, low-calorie, electrolyte-rich profile. According to China Insights Consultancy (CIC), in 2024, urban white-collar workers made up 45% of consumption, 32% for sports hydration, and the maternal-child demographic 18%.
The growth of this niche has powered IFBH's financial ascent. According to its IPO prospectus, the company posted revenues of US$158 million in 2024, up 80.32% from 2023, with net profit rising 98.9% to US$33.3 million. Notably, revenue from the Chinese mainland alone accounted for US$146 million, or 92.4% of total earnings.
Behind these figures is a lean team: 46 employees, including 20 in sales and marketing and five in R&D. The company operates on a light-asset model, outsourcing production to Thai manufacturers and logistics to third parties, while focusing on brand and market strategy.
Founded by Thai entrepreneur Pongsakorn Pongsak in 2011 through General Beverage, IF entered Hong Kong in 2015 and swiftly became Hong Kong's best-selling coconut juice. In 2017, the brand expanded into the Chinese mainland. As of 2024, it has led the market in both regions, claiming a 60% share in Hong Kong and 34% in the Chinese mainland, according to the prospectus.
In 2022, General Beverage restructured to spin off international operations, including the IF and Innococo brands, into IFBH Limited. That same year marked a turning point: collaborations with top livestream hosts drove a 300% month-on-month sales surge, catapulting IF to the top of Tmall's category rankings. The brand's visibility soared further in 2024 after naming top Chinese celebrity Xiao Zhan as its global ambassador.
Market heats up with domestic and global brands
However, success has invited competition. American brand Vita Coco, which has been present in China since 2014, holds a 12-15% market share. Domestic players like Wahaha, Uni-President, and Coconut Palm have all launched coconut water lines. Retailers such as Freshippo have introduced private-label products, with aggressive pricing, such as 9.9 yuan for a 1L bottle, intensifying the price war.
As the price war intensifies, average prices dropped 23.5% in two years, from ¥1.91/100ml in Q1 2023 to ¥1.46 in Q1 2025, according to Win Win Network. IFBH saw its share fall from 47.48% to 36.42% during the same period. Despite modest price cuts of 9.6%, IFBH faces pressure, especially as Thai-sourced coconuts surged to over ¥20,000/ton in Q3 2024.
Under the pressure, IFBH's Chinese distributor issued a pricing adjustment notice in August 2024, suggesting a 20% price increase, citing the influence of international exchange rates that increased raw material costs.
Coconut water products on display at the Chongqing New Century Department Store (Huarong Modern Plaza Branch). (Photo/Zheng Ran)
Challenges remain. IFBH's dependence on outsourced production limits direct quality control. Its largest OEM partner, General Beverage, also services competing brands. In 2023 and 2024, procurement from its top five suppliers accounted for over 90% of purchasing, exposing its lack of bargaining power.
Despite these hurdles, IFBH remains optimistic. Funds raised from the IPO will be used to strengthen warehousing and logistics, expand brand presence in China, and explore new markets in Australia and the Americas, including potential acquisitions.
CIC projects the global ready-to-drink beverage market to grow from $1.13 trillion in 2024 to $1.52 trillion by 2029. Coconut water is expected to grow from $5 billion to $8.5 billion over the same period. In China, the RTD market is set to rise from $138.4 billion in 2024 to $194.7 billion by 2029. Coconut water stands out as the fastest-growing segment, expected to jump to $2.65 billion at a CAGR of 19.4%.
"The coconut water category in China will continue to expand," said Zhu Danpeng, a food industry analyst. "IFBH has entered a phase of rapid development and brand expansion. But the industry also faces chaos; how to address that will be the next challenge for every coconut water brand."