Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

China Soy Sauce Industry Overview, 2017-2021


Soy sauce is the leading product in China's condiment industry with the largest annual output volume, presenting huge potential for growth. In recent years, China's soy sauce output volume has been constantly increasing. It exceeded 10 million tons in 2016 according to CRI market research.

In the past few years, in terms of output volume, leading enterprises were Foshan Haitian Flavoring & Food Co., Ltd., Jonjee Hi-tech Industrial & Commercial Holding Co., Ltd., Jiajia Food Group Co., Ltd., Lee Kum Kee and Shanghai Totole Food Co., Ltd. They are all national enterprises with nationwide sales channels. There are also some regional soy sauce producers with regional sales channels. Currently, with specification of channels and products, leading enterprises in China's soy sauce industry are rapidly expanding through nationwide advertising, multi-channel marketing strategies, acquisitions and restructuring. They are becoming integrators of the industry based on diversified operations.

In China, soy sauce is mainly produced in high-salt liquid and low-salt solid, and the former produces higher-quality soy sauce with rich flavors. Major consumers are from the catering industry and households. In recent years, with the improved consumption standards and nutrition awareness of Chinese consumers, demand for soy sauce with special features has been increasing. In addition, inexpensive soy sauce also enjoys a large market mainly in the third and fourth tier cities and rural areas. However, soy sauce products will move from the middle end to the high end and structural adjustment is a long-term trend given the overall consumption upgrading of the society.