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1、CONTENTS Error! No text of specified style in document. May 2012 | 1-800-330-3772 | IBISWorld Industry Report 1532 Bottled Water Production in China May 2012 About This Industry . 2 Industry Definition 2 Main Activities . 2 Similar Industries . 2 Additional Resources . 3 Industry Performance 4 Exe
2、cutive Summary . 4 Key External Drivers 4 Current Performance . 5 Industry Outlook 6 Industry Life Cycle . 8 Products any negative effects were offset by increasing domestic demand and industry revenue maintained high growth in 2009 and 2010. Additionally, large enterprises expanded their sales netw
3、orks, driving industry revenue and establishment growth. Industry revenue is expected to increase 13.7% in 2012. Revenue surged 21.6% in 2008 as demand from the Beijing Olympic Games boosted sales. Further, a large number of the industrys enterprises employed more people to operate new establishment
4、s set up especially for the Olympics. Larger companies have been setting up establishments around the country to boost production and expand into new markets. However, in a rush to enter the industry and reduce costs, some new establishments ignored the governments health and quality laws by produci
5、ng sub-standard drinking water, re-using expired barrels or bottles, and using filling processes without proper sanitation. This led to the implementation of sample quality tests by the General Administration of Quality Supervision, Inspection and Quarantine of China, which revealed low passing rate
6、s for firms between 2003 to 2006. Disqualified producers were fined or shut down by local administrations. International trade In 2008 and 2009, bottled water imports declined and were mainly replaced by domestic products. Imports of high-end bottled water products continue to grow, and the value of
7、 imports is set to jump 10.7% in 2012. However, competing imports only account for a very small proportion of domestic demand, an estimated 0.2% in 2012. In 2012, exports are set to increase 8.6% to $516.8 million. However, exports as a proportion of industry revenue have declined from 6.9% in 2007
8、to an estimated 3.8% in 2012. WWW.IBISWORLD.COM.CN Bottled Water Production in China May 2012 6 Industry Outlook In the five years through 2017, industry revenue will grow at an annualized rate of 7.2% to total $19.2 billion. This is much slower than in the past five years, as the industry will be e
9、ntering into the mature phase of its life cycle. ACMR-IBISWorld anticipates that lower raw material prices will offset slower demand growth and profitability will remain stable at about 7.3% of industry revenue. Due to increasing competition, the industrys larger companies are increasing their prese
10、nce in the bottled water market. These companies are rapidly developing their strategies and are expected to play a more important role in this industry in the next five years. These firms have high-end production technologies and capital reserves, as well as long histories of food and beverage manu
11、facturing. Lifestyles are getting faster, which leaves little time for people to boil water themselves. Additionally, water pollution problems in China are far from being resolved. Therefore, demand for bottled, canned and barreled water will continue to increase strongly. The government has impleme
12、nted new laws to control and regulate the safety of manufactured and processed food and beverages, which will standardize the quality requirement for drinking water products. Consumer concerns over the sanitation of plastic water barrels led to the development of bagged water. These water bags are i
13、nexpensive but are not recyclable and therefore raise environmental concerns. In contrast, barrels are relatively costly to produce due to high global crude oil prices but are reusable. The popularity of bagged water is expected to increase in the next five years. Domestic and office tap water purif
14、ying machines are expected to become more common. These machines use electricity to process and purify tap water, and require only periodic replacement of filters. They are more convenient than barreled water machines that require regular barrel replacement. Although these tap water processing machi
15、nes are currently not commonly used due to their high price, in the long term they will be in competition with barreled water produced by this industry. Bottled and canned water also competes with tea beverages (IBISWorld industry report 1539) and fruit juice (1533). WWW.IBISWORLD.COM.CN Bottled Wat
16、er Production in China May 2012 7 WWW.IBISWORLD.COM.CN Bottled Water Production in China May 2012 8 Industry Life Cycle This industry is in the growth stage of its life cycle. Life Cycle Stage Industry revenue and value added growth increased strongly in the past five years The industry has been dev
17、eloping rapidly for almost ten years and is expected to continue to expand moderately Over the next five years, the industry will enter the mature phase of its life cycle Industry value added has been increasing strongly in the 10 years through 2017, at an annual rate of 12.0%. This is significantly
18、 higher than Chinas GDP growth of 9.0% during the same period. Current industry revenue growth is being driven by consumption growth, while the production capacity of existing players is also increasing strongly. And although some of the industrys major companies have acquired smaller firms in the p
19、ast five years, the total number of enterprises operating in the industry has increased by a strong 13.4% per year in the five years through 2012. ACMR-IBISWorld anticipates that the industry will enter the mature phase of its life cycle over the next five years. Industry value added growth is forec
20、ast to slow to an annualized rate of 6.7% in the five years through 2017 as demand growth slows. Additionally, although new products are being developed and launched into the market, there have been limited developments in new manufacturing technologies. WWW.IBISWORLD.COM.CN Bottled Water Production
21、 in China May 2012 9 Products & Markets Supply Chain Key Buying Industries 6512 - Supermarkets in China Supermarkets sell a wide range of food products, including bottled water, to end consumers. supermarkets selling food, groceries, beverages, commodities and other products for retail sale. 6564 -
22、Gas Stations in China Firms in this industry sell bottled and canned beverages, including bottled water, to end consumers. 6710 - Full-Service Restaurants in China Restaurants often serve bottled or canned water to customers. 6720 - Fast-Food Restaurants in China Fast-food restaurants often serve bo
23、ttled or canned water to customers. Key Selling Industries 2651 - Basic Plastics and Synthetic Resin Manufacturing in China Businesses in this industry supply the raw materials for plastic packaging for bottled water. 4610 - Water Supply in China Water supply companies provide the Bottled Water Prod
24、uction industry with water, which it then purifies or otherwise processes. WWW.IBISWORLD.COM.CN Bottled Water Production in China May 2012 10 Products & Services Bottled water 48.0% Bulk or barreled water 44.0% Canned water 7.0% Other water products 1.0% Bottled water Bottled water is drinking water
25、 that is usually packaged in transparent plastic bottles of between 500 millilitres and 4 liters. Bottled water is less expensive due to its plastic packaging. Small bottles are convenient for daily use as they come with resealable caps, making it the most popular product in this industry. Bulk or b
26、arreled water Bulk or barreled water also accounts for a large share of industry revenue at 44.0%. A standard barrel holds 18.9 liters of water, which is suitable for households and offices. Faster lifestyles have changed the way people drink water at home or in the office. Most young and middle-age
27、d people prefer bulk or barreled water, as it saves the time it takes to boil tap water, and it perceived as cleaner and healthier drinking water. Canned water Canned water is drinking water of about 150 millilitres packed into aluminum cans. Canned water accounts for about 7.0% of industry revenue.
28、 It is not as popular as bottled water due to the small volume of water, the cans not being transparent, the perception that only soda drinks are canned, taste issues, and higher production costs. Other water products Other water products include bagged water. The plastic bags are disposable and ine
29、xpensive compared with barrels. However, the associated water machines are expensive and they cannot perfectly handle the bags. Therefore, revenue from this product segment is still very low. Bagged water is used in offices, by travelers and by the military. WWW.IBISWORLD.COM.CN Bottled Water Produc
30、tion in China May 2012 11 Demand Determinants Household disposable income Increases in household disposable income and improvements in consumption enhanced consumer purchasing power and the consumption of bottled and canned water products in the past 10 years. New products Product innovation and div
31、ersification created new demand. For example, in the 1990s there were limited bottled and canned water products, but in recent years numerous products are now available in the market, with different packaging sizes, and different characteristics. These include pure water, mineral water, activated wa
32、ter and flavored water. Innovations in product packaging have further stimulated consumption. Packaging changed from a standard, single size to various sizes, and became more convenient to use, in line with consumer habits. Consumer tastes Bottled and canned water products have become an important b
33、everage for daily consumption, which shows an improvement of the standard of living and a change of consumption habits of the Chinese. Many households prefer bottled water to tap water due to its various benefits, such as purity, safety and convenience. An increasing number of young people prefer bo
34、ttled and canned water to tap water. Bottled and canned water is more convenient and healthier than tap water and other beverages. Available leisure time Time constraints have created higher demand for the industrys products. Longer working hours in China have given people less time for boiling wate
35、r so they prefer bottled and canned water for daily use. Regional differences Consumption of bottled and canned water products differs by region. Regions with lower individual income levels have lower consumption levels. Rural areas have the lowest individual consumption of these products, although
36、the rural population occupies over 60.% of Chinas total population. Improvements in living standards and consumption habits in rural areas will contribute to higher market demand in the future. However, urban populations will remain the main market for bottled and canned water products in future yea
37、rs. WWW.IBISWORLD.COM.CN Bottled Water Production in China May 2012 12 Major Markets Beverage wholesalers 34.1% Beverage retailers 24.6% Supermarkets 24.5% Food service companies 10.5% Exports 3.8% Other 2.5% Beverage wholesalers Beverage wholesalers are the main purchasers of bottled and canned wat
38、er, and account for 34.1% of revenue. Wholesalers can widely distribute these products to many convenience stores, beverage retailers and grocery stores in a region. Supermarkets and beverage retailers Supermarkets and beverage retailers represent a large markets for the sale of bottled and canned w
39、ater. These are critical links with final consumers and their sales are relatively steady, contributing a combined 49.1% of revenue. Water stations that buy batches of barreled water directly from manufacturers and sell them to consumers are categorized as beverage retailers. Since households and of
40、fices increasingly purchase barreled water from water stations, the market segment of retailers is expected to increase in the future. Food service providers Food service providers, such as restaurants, often serve customers with bottled or canned water, and this water is seldom used for cooking pur
41、poses. This market segment accounts for 10.5% of revenue and is expected to remain small in the next five years. Exports Exports account for 3.8% of industry revenue in 2012, and this percentage has been declining in the past decade. The expansion of domestic markets encourages manufacturers to buil
42、d more facilities in China instead of developing foreign markets. Other markets Other market segments include vending machines and direct sales. This share is small because vending machines are not popular in China and few manufacturers offer direct sales services. WWW.IBISWORLD.COM.CN Bottled Water
43、 Production in China May 2012 13 International Trade Exports in this industry are low and steady. Imports in this industry are low and steady. In 2012, exports are set to increase 8.6% to $516.8 million. Natural water is the major export category, accounting for over 95.0% of export values. However,
44、 export values are forecast to increase at the low annualized rate of 6.5% in the five years through 2012, while exports as a proportion of industry revenue will decline from 6.9% in 2007 to 3.8% in 2017. Exports as a proportion of industry revenue have declined from a peak of 76.4% in 1999. This fa
45、ll has been due to the rapid development of the domestic market and lower export demand over the past decade. The main export destinations for bottled water in 2011 were Hong Kong, accounting for 93.8% of exports, and Macau (5.9%). Imports In 2012, competing imports are estimated to increase 10.7% t
46、o $21.8 million and account for 0.2% of domestic demand for the industrys products. During the five-year period through 2012, imports have been growing at an annualized rate of 3.3%. With increasing demand for high-end imported products, the value of imports is forecast to grow 8.3% annually over th
47、e next five years. After Chinas accession to the World Trade Organization (WTO) in 2001, import tariffs were reduced from between 23.0% and 44.0% to between 10.0% and 20.0%, which reduced the price of imported products and thus boosted domestic demand. Import volumes are relatively low as this indus
48、try does not require high technology levels and the majority of domestic demand is satisfied by local production. There are also good, safe and reliable water resources in China. WWW.IBISWORLD.COM.CN Bottled Water Production in China May 2012 14 Bottled water imports and exports Years Import Volume
49、Thousand Tons Growth % change Export Volume Thousand Tons Growth % change 2001 4.9 N/C 860.6 N/C 2002 14.7 200.0 798.4 -7.2 2003 4.9 -66.7 670.5 -16.0 2004 9.1 85.7 1013.6 51.2 2005 11.9 30.8 823.1 -18.8 2006 15.6 31.1 683.6 -16.9 2007 19.1 22.4 813.9 19.1 2008 19.3 1.0 752.6 -7.5 2009 21.7 12.4 871.8 15.8 2010 21.8 0.5 757.2 -13.1 2011 25.9 18.8 890.7 17.6 SOURCE: CHINA CUSTOMS Import sources of bottled water (2011) Import Source Import Value Million Dollars Share of Total Imports Percentage France 12.4 63