For the complete report, get in touch with us at : info@netscribes.com The food processing industry in China is still at a nascent stage but is growing at an impressive rate. Growth in this sector is being propelled by increasing income in the hands of the Chinese consumers along with rise in food retailing. The report begins with an introduction of the food production market in China which includes food manufacturing, food processing and beverage manufacturing. This is followed by the market overview section which discusses the market size and growth. The market overview section analyses the food processing segment in South China, North China, East China and South-west China. An analysis of the drivers influencing the industry growth includes rise in income, increase in food retailing, urbanization and changing consumer lifestyle. The key challenges identified are import of food processing equipment, absence of storage infrastructure and dearth of food supply chain standards. The report discusses the various government initiatives taken in the area of food safety as well as other initiatives undertaken. An analysis of the trends shows that there has been an emergence of online food retailers, increasing number of acquisition deals and collaborations happening, entry of newer processed food products. The competition section discusses the business overview, financial overview and future plans of the players.

1. Food Processing – China
October 2010

2. Executive Summary
Food Processing industry in China is still in its nascent stage and is developing
Compared to developed countries where ratio between processed food and agricultural food is
Market a:b, in China the ratio stands at b:a
In most of the provinces, processing of seafood, meat, dairy are the main focus areas
LE
Drivers: Challenges:
– Rise in income – Import of food processing equipment
P
Drivers & – Absence of infrastructure
– Rise in food retail
Challenges
M
– Growth in urbanization – Dearth of food supply chain standards
Trends
–
SA
Changing consumer lifestyle
Emergence of online food retailers
Increasing number of acquisitions and collaborations
Entry of new processed food products
In China, a number of food processing companies are present
– Between 20-- and 20--, number of food processing firms grew by o % p.a.
Competition
Some of the players in the market are Company A, Company B, Company C, Company D, Company
E, Company F
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 2

3. •Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 3

4. Food processing sector leads among the food production
segment
Food Production
Food Manufacturing Food Processing Beverage Manufacturing
Includes cereals, wheat,
PLE
Includes rice milling, flour Includes alcoholic
tea, coffee
M
milling, oil refining, animal
A
slaughtering and aquatic
S
product processing
beverages i.e., distilled
spirits, beer and wine,
soft drinks and tea
No. of firms in the Sectors (%) (20--) Sales Revenue from the Sectors (%) (20--)
E% H%
Food processing
F% Food manufacturing I%
G% J%
Beverage manufacturing
Source:
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 4

5. Food processing segment is at its infancy with huge
potential to grow
Market Overview Market Size & Growth
•Food processing industry in China is still in its
nascent stage and is developing USD bn
Compared to developed countries where ratio 700 O% Q
between processed food and agricultural food is
600
LE
a:b, in China the ratio stands at b:a P
•It is estimated that by 20--, processed fruits 500
and vegetables will constitute k-l% of the total
fruits and vegetables in China
MP 400
300
•There are m food processing companies in the
country while this includes n large food
processing companies
•Between 20-- and 20--, number of food
SA 200
100
0
processing firms grew by c% p.a. 20-- 20--
•In China, processed food is also known as
Note: Figures are for the respective calendar year
convenience food
Source:
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 5

6. Meat, seafood along with fruits and vegetables dominates
the food processing sector in south China
South China – Overview Output Value Of Provinces (20--)
• Local companies and foreign companies operate USD bn
business in the city of B Y
Focus of these companies is on food safety, taste, quality, 15
packaging, display, and services
• C is a coastal province. Roasted eels are the largest 10 X
LE
V W
item of export of processed food
All major D processed food enterprise invest in TV 5
advertisement and have celebrity spokespersons
• The tropical island of E is famous for production of
fruits and vegetables
MP 0
U
A
Hainan Hunan Fujian Guangxi Guangdong
Processed products in Hainan mostly include canned
coconut juice
• In 20--, Hunan’s total output of processed food rose
by s%. It mostly included basic needs products such
S
pineapple, fruit in syrup, coconut candies and canned
as condiments, meat items, oil, rice, liquor, fruit and
Number of Food Processing Firms (20--)
10,000 P
vegetable 8,000
Hunan aims at achieving food processing market of USD P 6,000
bn by 20--
• Processed food produced in B is mostly sold in the 4,000
province. It is lesser developed than the other 2,000 N O
provinces in South China L M
0
Hainan Guangxi Hunan Guangdong Fujian
Source:
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7. Drivers & Challenges – Summary
Challenges
Drivers Import of food processing equipment
Rise in income Absence of storage infrastructure
Rise in food retail Dearth of food supply chain standards
Growth in urbanization
Changing consumer lifestyle
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 7

8. Trends
Emergence of online food
retailers
Key
Trends
Increasing number of
Entry of new processed
acquisitions and
food products
collaborations
FOOD PROCESSING INDUSTRY IN CHINA 2010.PPT 8

9. Domestic Players (1/10)
SAMPLE
Company Snapshot: Company A
Corporate Information Financial Performance
Revenue
Headquarters Shanghai Revenue Profit
Profit / Loss
USD mn USD mn
Founded 20--
1,500 s 40
m q
t p 20
Products Dairy products 1,000
0
-20
Key People Jia Fen Wang – Chairman of the Board 500
-40
0 -60
20-- 20-- 20-- 20-- June 20—
to July 20--
Business Highlights
• The Company is principally engaged in processing, production and distribution of dairy products
• It is partly owned by the R municipal government and Compa Holdings Co
• The registered capital of the company stands as USD Z mn
• Company A is planning to acquire UK based Company B from V Group and U. Popular food products from Company B
include YZ and XY cookies
• It is expected that the acquisition will be worth USD W bn
Source:
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10. Thank you for the attention
The Food Processing Industry - China report is a part of Netscribes’ Food & Beverage Industry
Series.
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