The frozen food production industry in China has developed rapidly during the past decade. In the five years through 2013, industry revenue is expected to increase at an annualized 21.2% to $11.8 billion, according to IBISWorld. The strong growth is mainly due to greater disposable incomes, higher product prices, changing consumption trends caused by the faster pace of modern life, a wider variety of frozen foods, product quality improvements, high growth in mid-range and high-end product segments and the development of new markets.
As competition in the frozen food market intensifies, manufacturers are increasing investment in product innovation and production capability, reported San Francisco, Calif.-based IBISWorld. There is a large market space for high-end frozen food. With improved nutrition and taste, the proportion of mid-range and high-end products produced by this industry will increase. Manufacturers have also started to pay more attention to markets in China’s counties, towns and some developed rural areas.
In 2013, the four largest firms operating in China’s frozen food production sector – Zhengzhou Sanquan Foods, Synear Group, General Mills (China), and Longfong Group – are expected to account for 20.9% of industry revenue, which indicates the industry has a low industry concentration level. The barriers to enter this industry are not high, which results in many small enterprises operating in this industry, especially in smaller cities. Some smaller enterprises have also been acquired by larger enterprises in recent years, or have exited the industry. IBISWorld expects the industry concentration level to increase, with a rise in the number of mergers and acquisitions.
For more information, visit IBISWorld’s Frozen Food Production in China industry report page.
