Coca-Cola (NYSE:KO), the world’s largest soft-drink maker, reported on Tuesday that its third quarter net income increased from $2.22 billion in the third quarter last year, by 4 percent to $2.31 billion (50 cents a share).

Total operating revenue rose 1 percent to $12.34 billion; while worldwide sales volume grew by 4 percent in this quarter: 1 percent growth in Europe, 2 percent in North America, 5 percent in Latin America and 11 percent in the Eurasian and African regions.

Particularly, Coca-Cola’s once reliable growth engine – the Chinese market-- has shown signs of slowing down as sales volume in China rose just 2 percent in the third quarter, while in the second quarter this year, the growth rate was 7 percent.

“China is slowing down a little bit for the long-term benefit of China. As China will settle, there’s a little bit of adjustment,” the company’s chief executive, Muhtar Kent, said in an interview.

However, some beverage industry experts say that the decline of the carbonated beverage market in China is the main reason for Coca-Cola’s slow growth.

With Chinese people increasingly health consciousness, their demands for carbonated beverages are on the decline, said Yang Jianxin, consultant at Adfaith Consulting.

Chen Gong, spokesman of Tingyi Holding Corp (00322.HK), one Chinese food and beverage giant observes that in the beverage sector, tea drinks, energy drinks and juices have all grown rapidly and even water has kept stable growth. Only carbonated beverages are suffering from a decline.

Chinese local beverage companies also impose great pressure on the international beverage giant. One example is the JDB Group, whose popularity hit a peak as the title sponsor of one of the hottest TV show over the summer - “The Voice of China”. According to report from JDB group, the sales volume of JDB herb tea was about 16 billion yuan in 2011.

Last year, PepsiCo, the world’s second largest soft-drink maker, largest snack-food maker and the main competitor of Coca-Cola, sold its bottled drinks business to Chinese Tingyi Holding after suffering great losses in China due to the lack of understanding of the Chinese market.

Coca-Cola may suffer the same difficulties as PepsiCo as carbonated drinks the major profitable products in Chines market.

As an international beverage giant, Coca-Cola is still a strong market competitor in China. Coca-Cola had announced last year to invest $7 billion in China from 2012 to 2017, which has been confirmed by Muhtar Kent this year.