The fruit and vegetable juice market in China was up until year 2000 an undeveloped one but in the past decade, the industry has experienced strong growth with the trend expecting to continue, according to Western Farm Press.com.
The report, citing research by IBISWorld, America’s largest publisher of industry research, said revenue is forecast to grow at an average annualised rate of 22.5% over the next five years to US$43.34 billion in 2016.
In 2007, China’s Fruit and Vegetable Juice Manufacturing industry overtook the carbonated beverage segment in both output and revenue. According to IBISWorld, market saturation and health concerns about sugary sodas have allowed juice manufacturers to capitalise on a thirsty nation with increasing per capita income. The industry averaged 26.1% annual revenue growth over the past five years.
Higher product prices, continuous introduction of new products and industry concentration levels are expected to lead to higher profit margins in the industry. Total output of fruit and vegetable juice is expected to increase 28.9% from 2010.
Output of fruit juices and beverages is expected to continue growing strongly in the outlook period as many players' previous investments will be realised via improved production capability. In addition, rising product prices are expected to lead to higher industry revenue growth. Economic improvements in developed countries are expected to drive a strong rebound in industry exports, while imports will continue growing due to increasing domestic demand.
Source: Western Farm Press