Coca-Cola is estimating that China will be its third largest market by 2008, in time for the Olympics in the country, according to state media reports.

China is currently Coca-Cola's fifth largest market, but the media reports said the group would invest in production, development and staffing levels to meet its aims.

The China Daily quoted Coca-Cola China president Paul Etchells saying: "With the Beijing 2008 Olympic Games drawing near, Coca-Cola will further unfold its expansion plan in sports."

Coke has a 23% market share in China and is the leading carbonated soft drink brand.