Starting from the reform and open-up, China’s beverage manufacturing industry is development hot area and a new growth point in China’s consumptions. During the 30 years, this industry has become developed and mature from small scale, single product structure, and disordered competitions to a larger scale, a higher intensive degree and a more reasonable structure. It has made great achievements in brand development with more than a dozen Chinese brand enterprises and 22 brands in five categories products are rewarded as China top brands. In recent years, China’s beverage manufacturing has become one of the markets that develop at the fastest speed in China’s food industry.
Chinese local beverage enterprises mainly operate separately with a relatively small scale. The expansion of beverage market is restricted by factors such as short of capital, single financing channel, small technical content and weak strength. Along with the market internalization and local enterprises’ brand operation for so many years, a loyal brand consumption group has been formed gradually, which creates positive conditions for the development of products and market in new era. In a long period in future, China’s beverage enterprises will usher in a wider market and a better development environment.
In 2008, the total industrial output value of beverage manufacturing industry accounted for 6.68% of the value of light industry. Beverage manufacturing industry is an important industry, including alcohol manufacturing, alcoholic drinks manufacturing, soft drinks manufacturing and refined tea manufacturing.
From 2004 to November 2008, the number of beverage manufacturing industry increases from 3,469 to 4,807. The assets increased from 325.2 billion yuan to 567.1 billion yuan. The total industrial output value and industrial sales value increase from 244.1 billion yuan and 569.7 billion yuan to 238.9 billion yuan and 402 billion yuan respectively. The contribution margin increase from 15.5 billion yuan to 46.8 billion yuan.
Figure 5 105 Scale growth of beverage manufacturing industry 2004-2008
The industrial output value of alcohol manufacturing industry reached 10.7 billion yuan in 2004 and increased to 45.5 billion yuan in 2008. The industrial output value of alcoholic drinks manufacturing was 136.3 billion yuan in 2004 and 346.9 billion yuan in 2008, accounting for 50.5% of beverage manufacturing industry. The total output value of soft drinks manufacturing increased from 137.6 billion yuan in 2004 to 229.9 billion yuan in 2008, accounting for 36.7 of the output value of beverage manufacturing industry. Refined tea manufacturing generated a total industrial output value of 8.8 billion yuan in 2004 and increased to 34.9 billion yuan, accounting for 5.5% of beverage manufacturing industry.
Figure 5 106 Total output value of major sectors of beverage manufacturing industry 2004-2008
The sales costs of beverage manufacturing industry increased from 164.4 billion yuan in 2004 to 402 billion yuan in 2008. The management expenses increased from 16.3 billion yuan in 2004 to 25 billion yuan in 2008.The financial expenses increased from 3.2 billion yuan to 5.0 billion yuan. January to November in 2008 saw a year-on-year growth of 25.8% in sales costs, 25.2% in management expenses and 34.1% in financial expenses.
Figure 5 107 Costs and expenses of beverage manufacturing industry 2004-2008
Sales costs (100million RMB)
Year-on-year growth (%)
Management expenses (100million RMB)
Year-on-year growth (%)
Financial expenses (100million RMB)
Year-on-year growth (%)
Source: China National Light Industry Council
The asset growth ratio of beverage manufacturing industry kept a very high growth during 2004 to 2008, and peaked at 20.4% in 2007, followed by 18.7% in 2008. The asset-liability ratio maintained a steady change, which reached as high as 56.8% in 2004 but dropped slighted to 52.5% in the first 11 months in 2008. The contribution margin increased remarkably during 2005 to 2008. The profit growth rate was 48.3% in 2007. It kept a rapid year-on-year growth at 21.5% in the first 11 months in 2008 of the world economic depression and the domestic economic slowdown. The annual employee growth ratio was 9.2% in the first 11 months in 2008 and 9.5% in 2007.
Figure 5 108 Profit growth of beverage manufacturing industry 2004-2008
The output of fermented alcohol was 2.86 billion kilolitres in 2004, up by 12.5% on a year-on-year basis and increased to 6.81 billion kilolitres in 2008, up by 4.1% on a year-on-year basis. In 2008, the alcoholic drinks output was 48.823 million kilolitres, up by 7.0% on a year-on-year basis. The Chinese Baijiu output was 5.693 million kilolitres, up by 15.8% on a year-on-year basis. The beer output was 41.031 million kilolitres, up by 5.5% on a year-on-year basis. The wine output was 70,000 kilolitres, up by 23.8% on a year-on-year basis. The soft drinks output was 64.151 million ton, up by 19.1% on a year-on-year basis. Sodas output was 1.107 million ton, up by 10.4% on a year-on-year basis. Refined tea output was 98,000 ton, up by 10.9% on a year-on-year basis.
Figure 5 109 Output of major products of beverage processing industry 2004-2008