The Chinese food and beverage industry is one of China’s largest industries and can be divided into 9 sub-industries: Chinese spirits (Baijiu), Dairy, Foods (consumables), Meats, Beer, Condiments, Soft drinks, Red wine and ‘Other’ beverages (containing 91 stocks).
This report will focus on the Baijiu sub-industry.
The Baijiu industry accounts for 33% of the total revenue of the food & beverage industry. In the first half of 2018, the Baijiu industry maintained high growth; total revenue was ¥107.633 billion, an increase of 31.47% YoY and net profit was ¥36.863 billion, an increase of 39.94% YoY.
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Source: Wind data-provider
Characteristics of the Baijiu Industry
- Large Markert Capacity
- Competitive Environment
Bullish Industry Points
- The Consumption Structure Changes and the Industry Recovery Accelerates
- The Increase in Demand of all levels of Baijiu; Growing Sales Growth
Potential Cautions for the Industry
- The Development of Health Consciousness May Affect the Consumption of Baijiu
- Industrial policy risk