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China Condiment Industry Overview, 2016-2020

http://www.shcri.com/food/33320-china-condiment-industry-overview-2016-2020.html

According to CRI, there are thousands of condiment manufacturers while the industry concentration rate is low, and the differentiation of product quality as well as the sanitation level is large. Larger market shares are occupied by brands such as Haitian and Lee Kum Kee. According to CRI, the aggregate market share of top 5 condiment manufacturers was about 12.4% being fully competitive in China in 2015. However, the market concentration rate will be higher of segments such as soy-bean sauce and gourmet powder. More and more enterprises are attracted by this industry due to the large condiment market and high profits in China, which leads to huge threats for domestic brands from foreign-owned ones.

According to CRI, the market size of condiments increased from CNY 192 billion in 2011 to CNY 286 billion in 2015 with the CAGR of about 8%. Generally, the sales revenue of condiments is increasing while the rate is declining, which may be influenced by the economic growth rate.

Major raw materials of the condiment industry are grains such as soybeans, corns and wheat while part of them is meat. Therefore, costs of condiment raw materials are closely related to prices of grains like soybeans. Overall costs of the condiment industry are increasing yearly including that of manpower and marketing.