The study shows that three of the five fastest growing categories of the food & beverage industry are beverage kinds, in which alcoholic drinks have the fastest growth.
However, beverage consumption in China is still in its early stages.
Consumption per capita in China lags far behind the world average and that of developed countries.
Therefore, China represents a huge market potential to develop.
The food processing industry has a low concentration, poultry eggs, pork, beef & mutton and fruit, with many small companies.
This is due to the fact that the products have a low added-value and a low barrier to entry.
Moreover, China’s instant food market shows a monopolistic competition.
In the past limited to soda water, the beverage market has now developed to various categories such as carbonated drinks, fruit juices and vegetable juice drinks, etc.In 2005, food expenditure has accounted for 42% of the national household consumption; when looking at the food structure, self-support food expenditure gradually decreased, but demand rose for fresh industrialized products such as convenient food, green food and nutrients food, etc.
As for investments, there will be more investment opportunities in beverage manufacturing (mainly in wine and liquor manufacturing) than in food procession and food production in 2006.
More attention should be paid to the enterprises with influential brands and to opportunities in niche markets.