China's Packaging Machinery Market Research Report - PMMI

14.3 THE BEVERAGE INDUSTRY
The Current Status of China’s Beverage Industry (CBI)
China’s beverage industry (CBI) is newly developed. The annual output of beverages
was 288 thousand tons in 1980, 1 million tons and 1985, 3.3 million tons in 1990,
and 11.2 million tons in 1995. In 1999, it reached 14 million tons. With the rise in
output, more varieties appeared, with better quality, and the packaging styles
demonstrate a clearer diversity. There are two major reasons:
(1) Consumers’ increasing need for higher-grade and health-care beverages, due to
their rising income and desire for better quality products.
(2) The state adopts the free-competition policy regarding the industry, which better
adapts the development of market channels and paves the way for the growth of
CBI manufacturers.
However, China Beverage Industry still faces problems:
� Adjustment of the enterprise structure has yet to be made;
� Regional distribution is not quite rational;
� Quality of products need improvement;
� More efforts have yet to be made to open up more rural and international
markets.
The Prospects for China’s Beverage Industry Development (CBI)
(1) There is still more room for CBI’s development. China is rich in fruits and
vegetables, and there is enormous market potential for the consumption of
beverages. In spite of being one of the fastest developing industries, the per
capita consumption volume is far behind the average amount of the world.
China’s annual per capita consumption is only 8 Kg, 1/5 of that of the average
level of the world, 1/24 of Western Europe developed countries. China’s annual
per capita of juice and juicy drinks is 1 Kg, 1/40 of W. European countries. The
Beverage Industry will find vast room for further development in China with the
unceasing increase of the people’s living standard.
(2) CBI’s orientation: “Natural, Nutritious, Fine, Varied in Kinds & Grades”.
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