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CRI Report - Analysis Of China Aerosol Industry Characteristics, 2012

Jul. 15, 2013 11:34 PM ET
Eileen Gu profile picture
Eileen Gu's Blog
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(CRI-report) - According to the latest report "Research Report on Global and China Aerosol Industry, 2013-2017" by CRI, there are over 1 thousand brands of aerosol in the Chinese market, concentrating in insecticide, paint and auto-care products. In the early development of the industry, most manufacturers mainly introduced rather old foreign technology production lines to produce low-end products or conduct product processing with low technologies. In terms of products, they adopted market-oriented strategies. In recent years, along with the rapid rising of ASEAN and other BRIC countries, a number of industry leaders such as Shenzhen Rainbow Fine Chemical Industry Co., Ltd. actively invest in research and development, introduce advanced foreign production lines and actively develop highly profitable new aerosol products of independent intellectual property rights and high-tech content.

At present, there is a wide variety of aerosol products in the Chinese market, mainly including insecticide aerosol, paint aerosol, household aerosol, personal-care aerosol, auto-care aerosol, food aerosol, pharmaceutical aerosol and industrial aerosol.

China aerosol industry mainly shows the following features.

1. It develops rapidly and possesses huge market prospects. China aerosol industry started in early 1980s and the aerosol output volume was only 30 million cans in mid 1980s. However, the volume reached 560 million cans in 2000, increasing by over 18 times in 15 years, and 1.467 billion in 2011, making China one of the biggest aerosol manufacturers in the world. Though the base production volume was very big, the average annual compound growth rate of aerosol production still reached 11.9% from 2009 to 2011, higher than the GDP growth rate. However, the annual consumption per capita of aerosol in China was only 0.65 can and 1.07 cans in 2007 and 2011 respectively, which lagged far behind the annual consumption per capita of 2 cans in the world and was less than one tenth that of the 12.2-can annual consumption per capita in the U.S. in 2006. The data show that aerosol possesses huge potential in China market, which offers excellent development opportunities for aerosol production enterprises at home and abroad. (source: www.cri-report.com/industry-manufacturin...)

2. Product structure is under adjustment. Insecticide and paint aerosols possess the highest proportions in China aerosol market, while personal-care and household aerosols are the top two aerosol products in the international market, accounting for 40% and 30% respectively in mature markets like Europe and America. CRI has found by survey that proportions of insecticide and paint aerosol products in China aerosol market have indeed declined and that of personal-care and household aerosol products have grown significantly. Insecticide aerosol accounted for 44% of China aerosol market in 2000, but it decreased to 34% after seven years of development. The major reason lies in the rapid development of Chinese economy in recent years. Household and auto-care products are closely related to people's living, so the consumption of household and auto-care products grows with the increase in people's disposable income year by year. Therefore, the market of China aerosol products is also huge in terms of product structure. (source: www.cri-report.com/industry-manufacturin...)

3. Industry concentration is growing. As various countries enter into Montreal Protocol and constantly promulgate related systems and standards, small scale enterprises with backward technologies are being rapidly eliminated in aerosol manufacturing industry. As the market gradually matures, leading enterprises continuously expand the production scale and develop high value products. They will occupy an increasingly high share in the market. Although there are various aerosol brands scattered in the market, aerosol market will grow increasingly concentrated. (source: www.cri-report.com/industry-manufacturin...)


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