Soft drink industry now becomes one of the fastest growing consumption industries in China after the property wave of carbonated beverages, bottled water and tea drinks. In 2015, the output volume of soft drink reached 176.61 million tons and the sales revenue exceeded CNY 600 billion in China. With the rising of resident income and the upgrade of consumption structure, the demand for healthy beverage keeps increasing in China. Fruit & vegetable juice and beverage are healthy drinks, which is becoming popular among consumers in China.
According to CRI, the output volume of fruit & vegetable juice and beverage was 29.49 million tons in 2015, and the CAGR exceeded 10% during 2011 to 2015. In terms of the overall consumption power of fruit & vegetable juice drinks per capita, the consumption value of that is still at the primary stage in China. It is estimated that the market share of fruit & vegetable juice drinks of medium and high concentrations will enjoy a continuous increase with the promotion of consumers’ healthy consumption concepts. Particularly, the fruit & vegetable juice industry of 100% concentrations will have long-term development space.
There are many competitors of strength in fruit & vegetable juice and beverage market in China, of which the product categories are numerous. Competitors all have leading ones in segment market but there is no strong brand. According to market research by CRI, the CR5 of sales revenue of fruit & vegetable juice and beverage was about 9.1% in China in 2015. Numerous small and medium enterprises have no brand advantages, but they occupy certain shares in market segments (markets in small and medium cities) through product duplication and technology innovation of leading enterprises. These enterprises are expected to compete with famous brands for market shares through price competitions. In the fruit & vegetable juice industry in China, large-scale enterprises are confronted with difficulties of declining profit caused by price war while small and medium enterprises face significant pressure in aspects of funds and channels. It can be predicted that the competition among existing competitors will intensify in the long run.