《Fruit and Vegetable Juice and Beverage Manufacturing in China 2010-2016.pdf》由会员分享，可在线阅读，更多相关《Fruit and Vegetable Juice and Beverage Manufacturing in China 2010-2016.pdf（35页珍藏版）》请在三一文库上搜索。
1、 IBISWorld and ACMR China Industry Report 20 November 2009 Fruit and Vegetable Juice and Beverage Manufacturing in China: 1533 DISCLAIMER This product has been supplied by IBISWorld Inc. (IBISWorld) solely for use by its authorized licenses strictly in accordance with their license agreements with I
2、BISWorld. IBISWorld and All China Marketing Research Co., Ltd. (ACMR) makes no representation to any person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawful
3、ly disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. and All China Marketing Research Co., Ltd. (ACMR). The publication is
4、sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed tha
5、t it will be sourced to IBISWorld Inc. Contents Industry Definition 3 ACTIVITIES (PRODUCTS AND SERVICES)3 SIMILAR INDUSTRIES3 DEMAND (2) Companies from mainland China, such as Huiyuan and Wahaha, that have well-established beverage products in the domestic market; (3) Small juice manufacturing compa
6、nies that service local areas and have a limited distribution network; (4) Companies that have a lower profile in China, but have very large export markets and therefore have a larger proportion of market share within the industry. Examples of these companies include Shandong Jilong Group and Yantai
7、 North Andre (Group); and (5) International companies, such as The Coca-Cola Company and PepsiCo Inc, that are looking to increase their presence in the entire food and beverage sector in China. There are several major brands in this industry, including Huiyuan, Wahaha, Nongfu Orchard, and Uni-Presi
8、dent. These brands have already built a strong brand image in the market, and it is becoming increasingly difficult for new entrants to develop and build an image. Market shares in particular regions are mainly held by several large brands, and there is little product differentiation. Competition an
9、d barriers to entry in the industry are increasing, resulting in companies competing in various ways, including materials sourcing; product research and development; manufacturing; marketing and other business processes. Consumers are paying more attention to juice quality, rather than advertising a
10、nd promotion. Product differentiation is low, and industry participants use similar distribution and promotion methods. As such, one of the main ways that firms distinguish themselves from other competitors is to offer juice products that have a quality that is commensurate with its price. Reducing
11、costs is an effective method to compete in the Fruit and Vegetable Juice and beverage Manufacturing Industry in China. Fruit and vegetable juices are highly substitutable, with a very high price sensitivity and elasticity. Therefore, MARKET CHARACTERISTICS Fruit and Vegetable Juice and Beverage Manu
12、facturing in China 20 November 2009 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 15 price is an important basis of competition in this industry. To retain profits, firms in this industry often need to reduce costs, while maintaining an appropriate product quality. Competiti
13、on for retailers is very important for achieving a long-term advantage. After several years of industry development, competitive methods have become mature and steady, and companies are finding it increasingly difficult to obtain competitive advantages with current operating methods. Some manufactur
14、ers have gained advantages by establishing strong relationships with retailers, which also contributes to stock and ordering control. External competition for this industry is strong from products such as bottled pure water, carbonated beverages, bottled tea beverages, milk drinks and other packaged
15、 drinks. LIFE CYCLE Life Cycle Stage The life cycle stage is growth Life Cycle Reasons Value added increased strongly in the past five years Per capita consumption of fruit juice is still quite low in China Enterprise number have increased in recent years Foreign investment in this industry has been
16、 increasing Life Cycle Analysis Industry revenue and valued added are expected to increase at annualized growth rate of 27.1% and 25.4%, respectively, in the five years to 2009. This is much higher than the average GDP growth rate of roughly 10% in the same period. These high growth rates indicate t
17、hat the industry is in the growth phase of its life cycle. Annual per capita consumption of juice in China is less than 1kg, almost one-tenth the world average and just 2.5% of the level in developed countries. If per capita juice consumption in China reaches the world average level of about 8kg per
18、 year, the market volume in China should be 91 million tons. This shows that there is still large potential for future industry growth. The number of enterprises has increased in the past five years at an annualized rate of 10.4%, and this is expected to continue growing in the near future. However,
19、 industry consolidation will increase the importance of economies of scale, brand image and product differentiation, which will in turn increase industry entry barriers. INDUSTRY CONDITIONS Fruit and Vegetable Juice and Beverage Manufacturing in China 20 November 2009 Copyright 2010, IBISWorld Inc.,
20、 All China Marketing Research Co., Ltd. 16 Industry Conditions BARRIERS TO ENTRY Barriers to entry in this industry are medium These barriers are increasing In the Fruit and Vegetable Juice and Beverage Manufacturing Industry in China, economies of scale are becoming increasingly important. As great
21、er competition turns the industry into a price-based industry, participants can gain a performance advantage by minimizing marginal costs. As brand image is a very important success factor in the Fruit and Vegetable Juice and Beverage Manufacturing Industry in China, investment in advertising and ot
22、her marketing activities are important for firms willing to compete at nation-wide level, or in large and developed markets in big cities. Product differentiation plays an increasingly important role in this industry, and enterprises need to invest in product R (2) Value-added Tax (VAT) - 17%; (3) C
23、ity Construction and Maintenance Tax - 7%; and, (4) Educational Surcharge - 3%. The Corporate Income Tax Law of the Peoples Republic of China was passed by the National Peoples Congress in March 2007 and implemented from January 1st, 2008. It unifies the previously different income tax polices for f
24、oreign and domestic enterprises. Within the new system, income taxes will be levied on both domestic and foreign enterprises at a rate of 25%, with favorable tax rates applicable to high-technology enterprises (15%) and small-size domestic enterprises (20%). The VAT in this industry however varies f
25、or different product segments. The average tax rate is at 17%, while some products enjoy lower tax rates of 13% or are even tax exempted. City maintenance and construction tax is levied at different rates based on different locations of the enterprise. An enterprise in urban areas pay the tax at 7%
26、of its real value added tax amount. If it is located in a rural area, the rate is only 1%. Enterprises in counties and prefectures pay the tax at 5%. The educational surcharge applies to all domestic enterprises, which should pay the surcharge by 3% of their real value added tax; foreign-funded ente
27、rprises are exempt of educational surcharge. INDUSTRY CONDITIONS Fruit and Vegetable Juice and Beverage Manufacturing in China 20 November 2009 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 17 INDUSTRY ASSISTANCE The level of Industry Assistance is high The trend of Industry
28、 Assistance is steady Key Tariffs Goods Low Rate* High Rate* Frozen orange juice 7.5 90.0 Orange juice not frozen, with a sugar content not exceeding 20% 30.0 90.0 Grapefruit juice with a sugar content not exceeding 20% 15.0 90.0 Lemon juice with a sugar content not exceeding 20% 18.0 90.0 Pineapple
29、 juice with a sugar content not exceeding 20% 10.0 90.0 Tomato juice 30.0 80.0 Grape juice with a sugar content not exceeding 30% 20.0 90.0 Apple juice with a sugar content not exceeding 20% 20.0 90.0 Coconut milk 10.0 90.0 Mango juice 20.0 90.0 Passion fruit juice 20.0 90.0 Guava juice 20.0 90.0 Ve
30、getable juice 20.0 80.0 Mixtures of fruit juice 20.0 90.0 Mixtures of other juices 20.0 80.0 *Percentage of value unless otherwise specified Import tariffs on juice products protect domestic juice manufacturers from competing imports to a certain extent. Generally, the import duty rate for fruit jui
31、ces is 90% and for vegetable juices is 80%, which are very high, while the import VAT rate is 17%. For MFNs (Most Favored Nations), the import duty rates are much lower, the lowest of which is 7.5%. Conversely, the current export rebate rate for juice is 15%, an increase from 13% prior to June 1 200
32、9 to stimulate repressed exports. Under the Bangkok Agreement (BA), tariff rates are even lower. The rate for lemon juice is 16.8%, and that for coconut milk is 9%. The rates of mango juice, passionfruit juice, guava juice and juice mixtures are all 17.4%. INDUSTRY CONDITIONS Fruit and Vegetable Jui
33、ce and Beverage Manufacturing in China 20 November 2009 Copyright 2010, IBISWorld Inc., All China Marketing Research Co., Ltd. 18 REGULATION AND DEREGULATION The level of Regulation is medium The trend of Regulation is steady In November 2006, China Standard Administration Council (SAC) set up Gener
34、al Rules of Beverages, which was implemented in 2007, setting up standards for beverages. In March 2002, the Ministry of Economic Trade for Foreign Countries implemented Regulation No. 21 to encourage foreign investment in China in different industries including fruit juice manufacturing. In 1995, S
35、tandards of Organic Green Food without Pollution were published, including NY/T 290-1995 for orange juice and concentrate, NY/T 291-1995 for guava juice, and NY/T 292-1995 for passion fruit juice. In 1991, the Ministry of Sanitation enacted GB12695-90, Hygienic Specifications of Beverage Factories,
36、regulating health and hygiene standards of juices. COST STRUCTURE Year: 2009 Item Cost % Purchases 60.9%* Tax and Interest 11.9%* Wages 3.2%* Depreciation 3.1%* Rent 2.8%* Management and Administration 1.9%* Utilities 1.6%* Research and Development 1.1%* Other 6.5%* Profit 7.0%* Profits Profit margi
37、ns in this industry were increasing prior to 2008 due to higher product prices and stable raw material costs. However, due to the negative impact of the global financial crisis and falling final prices, industry profitability decreased in 2008 and 2009. ACMR-IBISWorld estimates average industry prof
38、it margins were 7% in 2009, although these vary significantly between firms, generally with larger companies being more profitable than smaller companies. INDUSTRY CONDITIONS Fruit and Vegetable Juice and Beverage Manufacturing in China 20 November 2009 Copyright 2010, IBISWorld Inc., All China Mark
39、eting Research Co., Ltd. 19 Costs Raw material purchases account for the largest part of a companys costs in this industry at about 60.9% of total revenue. This includes costs for raw materials such as fruits, vegetables, pure water, other additives and packaging materials. Labor costs in China are
40、low, and the Fruit and Vegetable Juice and Beverage Manufacturing Industry in China is not a typically labor-intensive industry. Wages are estimated to make up 3.2% of industry revenue. Depreciation is relatively moderate at 3.1% of revenue. However, along with the improving mechanization level in t
41、his industry and the more common use of equipment for processing or preserving fruits and juices, its share of total revenue is expected to slightly increase in the future. Other costs include transportation, fuel, insurance, office equipment, marketing and sales costs, and other miscellaneous expen
42、ses. CAPITAL AND LABOR INTENSITY The level of Capital Intensity is medium Labor costs are relatively low in this industry More facilities and equipment are being used Introduction of foreign technologies may raise capital intensity of the industry Establishments within the Fruit and Vegetable Juice
43、Manufacturing Industry in China spend approximately two dollars on labor for every dollar invested in capital. Although this tends to be a capital-intensive industry, considering the large number of workers employed in this industry and the relatively low labor costs in China, ACMR-IBISWorld rates t
44、his industry as having medium capital intensity. An increasing number of foreign companies are investing in this industry in China. With the joint-venture entry method currently used by many foreign firms, this increases the capital investment within the industry. With the development of new technol
45、ogies and new equipment, this industry continues to shift from labor-intensive to capital-intensive. TECHNOLOGY AND SYSTEMS The level of Technology Change is medium Technologies, such as high-temperature fast sterilization, sterilization packing, mechanized bottling, mechanized production and others
46、, have developed rapidly in recent years. The use of advanced technologies largely improved the manufacturing process in terms of packaging, preserving, transportation, etc. A great number of world-leading equipment and technology has been imported from Germany, Switzerland, Italy, Japan and other c
47、ountries and regions. This equipment is used in sterilization, juice extraction, bottling, washing, filtering, etc. Many of the major players in the Fruit and Vegetable Juice and Beverage Manufacturing Industry in China have R per capita income growth; higher foreign demand; and increasing consumpti
48、on across particular consumer groups, such as women and children. Industry revenue growth slowed to 8.4% in 2009 due to the global financial crisis, lower prices and significant declines in exports. An export decline in 2008 also resulted in industry revenue increasing by a relatively modest 19.2% f
49、or the year, down from very high growth of 46.2% in 2007 and 42.6% in 2006. In 2000, the juice market in China was relatively undeveloped, and competition was not well-developed. In the market, there were only several small brands, and profit margins were relatively high. Uni-President almost monopolized the market until some other large international and domestic companies entered the market in 2002. Profit margins in the industry were increasing prior to 2008 due to increasing product prices and stable raw material costs. However, due to the negative imp