Rising juice product prices will drive future revenue growth.
San Francisco, CA (PRWEB) November 04, 2012
The Juice Production industry in China has experienced substantial growth in the past decade. In 2007, both output and revenue of juice surpassed carbonated soft drinks in China, says IBISWorld. Revenue for the industry has been growing 20.1% annually over the past five years to an estimated $18.6 billion in 2012. Large volumes and varieties of readily available fruit and vegetables in China, and increasing household incomes have contributed to the rapid expansion. However, due to surging prices of raw materials, including sugar, fruit and vegetables, the industry profit margin is quite low.
In 2012, the top four companies in the Juice Production industry in China account for a combined market share of about 21.0%, indicating a low industry concentration level. This low level is mainly due to a large number of small and medium-sized firms in this industry and a small number of large companies. The concentration level is much higher for certain product segments. For example, major player Huiyuan dominates the pure fruit juice and 26%-to-99% concentrated fruit and vegetable juice segments. In the 25% or lower concentrated fruit juice segment, Minute Maid (produced by Coca-Cola) is the leader.
Output of fruit juices and beverages will continue growing strongly over the next five years, driven by the improved production capacity of top industry players like Coca-Cola, Huiyan, Uni-President and Master Kong. In addition, rising product prices are expected to lead to high revenue growth, says IBISWorld.
For more information, visit IBISWorld’s Juice Production in China industry report page.
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IBISWorld Industry Report Key Topics
Establishments in the Juice Production industry in China use fresh or frozen fruit and vegetables, such as apples, oranges, pears, mangos, berries, tomatoes and carrots, as raw materials to extract juice. This can then be mixed with water, liquid sugars, additives and preservatives to produce fruit or vegetable juice or beverages. Final products contain at least 10% juice and up to almost 100% pure juice.
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.