China's Flavor and Fragrance Industry Status and Future Forecast
First, comprehensively analyze the market and understand the status of the industry
The total number of the national flavors and fragrances industry is about 600, of which 2/3 are spice production companies, and 1/3 are flavors or flavors and fragrances. The total output value in 1999 is about 10 billion yuan, and the output is about 150,000 tons. In 1999, the total output value of edible flavors and spices was about 1 billion yuan, and the output was about 30,000 tons. Last year, the final perfuming consumer goods accounted for more than 8 billion yuan in sales. Among them, the output value of fragrant food amounts to 600 billion yuan and tobacco 70 billion yuan. (The following analysis was based on food flavors and fragrances).
1. Flavors and fragrances companies are three-nation structure
The foreign-funded enterprises, with their technological and economic strengths, have great potential in the Chinese flavor and fragrance industry. According to statistics, the world’s top ten fragrance and fragrance companies have invested in China. With its famous brand, advanced technology, large-scale investment and standardized business philosophy, the development rate is very rapid. The market has become the unshakable subject, leading the trend of the Chinese flavor and fragrance industry. However, because of its high production costs, few varieties, and low degree of localization, management and business strategies cannot fully adapt to the Chinese market, making its progress and development subject to certain obstacles.
State-owned enterprises are still the main body of the Chinese flavor and spice market. Due to its long history, high brand awareness, stable quality, and low price, state-owned veteran companies are widely favored by users and occupy a major market share. Only the output of the three state-owned enterprises of Peacock, Baihua and West Lake has exceeded that of the flavor and spice market. 1/3 or more, but the state-owned enterprises are currently developing at a slow or even backward rate due to weak basic research, low technical content, inflexible business practices, and weak service awareness.
The township and private enterprises, with the encouragement of the current national policies, have developed rapidly. With their flexible operating mechanisms and good services, they have won favorable comments from users and their market share is continuously expanding. However, for most private enterprises, due to the poor economic and technological foundation, poor brand awareness, unstable product quality, and lack of comprehensive business philosophy, it has made it difficult for them to continue to develop.
A rough analysis of the above three types of companies can be seen that each one survives and develops in its own unique way.
2. National Flavor and Fragrance Products Are Flat Triangles
The national food flavors and fragrances have been sold for about 30,000 tons in production volume in recent years. The average price is around 35 yuan/kg. Most state-owned enterprises and many private enterprises compete brutally in the middle and low-end markets, and their production capacity is excessive. The situation of the war. The share of state-owned private enterprises in middle-to-high-end products is not large, and a large share of them is occupied by foreign-funded enterprises. Among the one billion spices, cold drinks accounted for about 51%, candy baking accounted for about 24%, seasoning accounted for about 17%, and others accounted for about 7%. In the distribution of market share, foreign-funded enterprises accounted for about 17%, state-owned enterprises accounted for about 55%, private enterprises accounted for about 24%, and others accounted for 4%.
3. Market structure has changed dramatically in recent years
The development of China's food industry in the past 10 years has been in a good state and has maintained a sustained, rapid, and healthy development. According to relevant data, the total output value of the food industry from 1993-1998 increased from 343 billion yuan to 600 billion yuan, with an average annual increase of 12%. The canned food was 2,545,700 tons, an increase of 10.54%; the soft drink was 12 million tons, an increase of 134.93%; and the fruit juice drink was 1,193,500 tons, an increase of 49.1%. The food industry invested in, produced and Sales and other aspects are gradually escaping the shackles and influence of the traditional planned economy and entering the market economy in all directions. The average annual balance of net fixed assets in the food industry increased by 155.4%. In the food industry capital, the proportion of foreign capital reached 23.32%. The technological content of production technology in the food industry is relatively increasing, and deep processing and precision machining are developing in depth, especially for convenience foods, snack foods, and health foods. In frozen foods, cooked food products, a variety of condiments, gift foods, tea drinks and fruit and vegetable beverages, there will be greater room for development.
Second, forecast the market prospects and find the direction of development
With China's accession to the WTO, the rapid development of the network economy, and the further liberalization of the country’s macro economy, China’s economic structure will be substantially adjusted in the next five years, and people’s change in the concept of market economy operations will exceed the speed of the previous 20 years. China will gradually become the world's largest consumer market. Although most companies will be eliminated, the vast majority of industries will eventually be dominated by ethnic enterprises.
1. Flavors and fragrances industry will change dramatically
Some experts commented that China's overall level of flavor and fragrance industry is at least 20 years apart from the international advanced level. However, China has always been a large country for the cultivation, production, and consumption of spices. Advanced technology will flow into China through economic leverage in the process of global economic integration, making China's flavor and fragrance industry close to or synchronized with international advanced level in a short time, and China This piece of land with a special history, culture and economic development background is difficult for other foreign forces to assimilate. She can quickly learn from others and improve herself. This can be corroborated from other industries. For example, foreign brands in the color TV industry have basically withdrawn from the Chinese market; foreign brands in the computer industry have reached their highest peak, and Chinese brands are pouring into the market; three years later, mobile phones from foreign brands will all be withdrawn from China. At the same time, due to the country's macroeconomic adjustments, private economy and other economies are encouraged to enter state-owned capital. Therefore, state-owned enterprises will change the most in the next 3-5 years. Among the adjustments, some are blindly reformed due to the enjoyment of state preferential policies and are incompatible with economic development. Their future can be imagined. Others will not only continue to maintain their dominance in the Chinese market, but will also be able to unleash the bondage and enhance their vitality. Therefore, in the next few years, the technology level of the flavor and fragrance industry will be greatly enhanced, and the capital structure will be greatly improved. Adjustment, a period of great changes in business concepts. The relationship between enterprises will transform from simple differentiation, price wars, disorderly or low-level competition in price alliances to strategic alliances. This alliance is no longer for the purpose of obtaining monopolistic profits. Instead of abusing market forces, it is to form a loose community of interests sharing resources, technical cooperation, complementing each other, and combining strengths. It is in the context of global economic integration. Next, it forms an effective worldwide competition.
2. The structure of the consumer market will also change
Health and nutrition will be the main requirements for food in the future. The cold beverage market will still maintain an annual growth rate of over 20%. Variety pattern does not change much. The beverage market has a growth rate of at least 20%, of which tea beverages, fruit and vegetable beverages and milk beverages will have a greater growth, especially the tea beverage market will grow exponentially. Tea beverages such as Japan and the United States have already accounted for 25% of the total amount of beverages, and China currently accounts for only 2%. The candy market is unlikely to grow. The annual growth rate of baked goods will exceed 10%. The instant noodles market is basically saturated, and meat products and frozen convenience foods will have greater development. At the same time, with the entry of the WTO, the elimination of tariff barriers and the imported foods will also occupy part of the market and affect the market structure. However, China’s unique food habits will not be changed substantially. Traditional foods will continue to be the main consumers of food. Similarly, the export of Chinese foods will also become a new bright spot for economic growth.