China's new standards for tap water will increase competition for bottled water producers.
San Francisco, CA (PRWEB) October 21, 2012
In the past five years, the Bottled Water Production industry in China has developed rapidly. Driven by increased domestic demand and higher output levels over the five years through 2012, revenue has been growing at an annualized rate of 19.0% to an estimated $31.1 billion, says IBISWorld.
The government has implemented several industry standards and regulations that have provided confidence in the market and to consumers. The competitive landscape has also changed, with growth in foreign and private capital and investment across the industry. State-owned enterprises were the main players in the industry 20 years ago, but now most have withdrawn from the industry. Private and stock companies now make up the largest proportion of the industry's firms. The top four companies, Hangzhou Wahaha Group, Ting Hsin International Group, Nongfu Springm and Jiangxi Runtian Natural Beverage and Food, account for over a third of industry revenue. Foreign and joint venture companies in China benefit from advanced technologies and equipment for bottled and canned water production. They generally have larger capital reserves and invest more to research and develop new products. Danone and Nestle are among the top food enterprises in the world that own or control industry enterprises in China.
The industry concentration ratio is expected to increase as small firms and some medium-sized enterprises are acquired by larger firms. This is particularly likely for the companies that do not have stable access to high-quality water sources or cannot ensure product quality. Competition is also set to intensify as the Bottled Water Production industry in China enters the mature phase of its life cycle, says IBISWorld. In particular, the implementation of the new standard for drinking water in July 2012 will facilitate of development of household and office tap water purifying machines, which will increase external competition for this industry.
For more information, visit IBISWorld’s Bottled Water Production in China industry report page.
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IBISWorld industry Report Key Topics
The Bottled Water Production industry in China comprises companies involved in the collection and packaging of water. Water is sourced from underground mineral water reserves and other water supplies in accordance with the government’s Standards for Drinking Water Quality. It is then sealed in plastic bottles, cans, glass bottles, barrels or other containers, without any additives.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.