Page 258 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
female consumers are driving growth in several China's beverage production and sales
sectors of the global economy, such as healthcare, registered stable growth during the first four
e-commerce and education. According to global months of 2022, official data shows. In the
consultancy Accenture, there are nearly 400 million January-April period, major beverage firms
female consumers aged 20-60 in China, who control produced 57.9 million tons of beverages, up 1%
consumption expenditures of up to 10 trillion RMB from the same period in 2021, according to the
annually. UBS earlier expected China to take a Ministry of Industry and Information Technology.
further share of global consumption over the next In April, the beverage output of these companies
decade, reaching the current level of the United topped 14.1 million tons, down 8.5% year-on-year.
States in 2030, implying roughly US$6 trillion in Major producers are companies with an annual
household consumption growth over the next 10 revenue of at least 20 million RMB (US$2.97
years. People's consumption concept has changed million). China's beverage retail sales climbed
since the COVID-19 outbreak, especially a focus on 10.4% year-on-year to 93.8 billion RMB in the first
"health"/"ease of purchase" over "brand"/"price" four months of 2022, according to earlier data
that seems likely to last. The higher ratio of young (Xinhua, “China’s Beverage Production, Sales Up in
females to males in education would have a small First Four Months of 2022”).
negative (about 5%) impact on consumption
growth over the next decade, potentially hitting China's food industry saw stable expansion
traditional consumer sectors but benefiting in terms of production and sales in the first two
investments. Improving finances for women in months of the year, according to data from the
China, along with the rising share of single-person Ministry of Industry and Information Technology.
households, could shift the consumption structure, The value-added industrial output of the
with more spending in sectors such as luxury, pets, agricultural and sideline food processing sector
healthy food, beer, and autos. Chinese women rose 6.5% year on year in the period, while that
are consumers, as well as investors. It is expected of the food manufacturing sector climbed 7.4%
that female-driven evolution in consumption year on year, according to the ministry. The sector
behavior and household structure would favor of wine, beverage and refined tea manufacturing
asset management and insurance. In 2020, female saw its industrial added value surge by 15.4% over
investors controlled 33% of total global personal 2021. In the January-February period, retail sales of
discretionary wealth, up from 31% in 2016, and grain, oil and food hit 310.26 billion RMB (US$48.85
the figure is expected to further increase to 35% by billion), up 7.9% year on year, while those of
2025, according to a report from UBS Global Wealth beverages and tobacco and alcohol rose 11.4% and
Management (China Daily, “Women’s Spending 13.6%, respectively (Xinhua, “China’s Food Industry
Power Grows in China”). Posts Steady Growth in Production, Sales”).
Food and Beverage Textiles
Major beverage producers in China registered China's exports of textile and apparel
double-digit growth in output in 2021, which maintained growth momentum in the first four
is expected to continue into 2022 and beyond. months of 2022, said the China National Textile
In 2021, major beverage producers saw their and Apparel Council, citing data from Chinese
output rise 12% year-on- year to over 183 million customs. Textile and apparel exports rose 8.65%
tons, according to the Ministry of Industry and year on year to US$95.84 billion from January to
Information Technology. In December 2021 April, the data showed. Textile exports reached
alone, the beverage output amounted to 13.59 US$48.82 billion, up 11.14% from 2021, and
million tons, up 8.3% year-on-year. Major apparel exports were US$47.02 billion, an increase
producers refer to companies with annual of 6.17% year on year. In April alone, the country's
revenue of more than 20 million RMB which is textile exports edged up 1.63% year on year to
about US$3.16 million (Xinhua, “China’s Beverage US$23.59 billion (Xinhua, “China’s Textile, Apparel
Industry Records Solid Growth in 2021”). Exports Up 8.65% in First Four Months”).
258
female consumers are driving growth in several China's beverage production and sales
sectors of the global economy, such as healthcare, registered stable growth during the first four
e-commerce and education. According to global months of 2022, official data shows. In the
consultancy Accenture, there are nearly 400 million January-April period, major beverage firms
female consumers aged 20-60 in China, who control produced 57.9 million tons of beverages, up 1%
consumption expenditures of up to 10 trillion RMB from the same period in 2021, according to the
annually. UBS earlier expected China to take a Ministry of Industry and Information Technology.
further share of global consumption over the next In April, the beverage output of these companies
decade, reaching the current level of the United topped 14.1 million tons, down 8.5% year-on-year.
States in 2030, implying roughly US$6 trillion in Major producers are companies with an annual
household consumption growth over the next 10 revenue of at least 20 million RMB (US$2.97
years. People's consumption concept has changed million). China's beverage retail sales climbed
since the COVID-19 outbreak, especially a focus on 10.4% year-on-year to 93.8 billion RMB in the first
"health"/"ease of purchase" over "brand"/"price" four months of 2022, according to earlier data
that seems likely to last. The higher ratio of young (Xinhua, “China’s Beverage Production, Sales Up in
females to males in education would have a small First Four Months of 2022”).
negative (about 5%) impact on consumption
growth over the next decade, potentially hitting China's food industry saw stable expansion
traditional consumer sectors but benefiting in terms of production and sales in the first two
investments. Improving finances for women in months of the year, according to data from the
China, along with the rising share of single-person Ministry of Industry and Information Technology.
households, could shift the consumption structure, The value-added industrial output of the
with more spending in sectors such as luxury, pets, agricultural and sideline food processing sector
healthy food, beer, and autos. Chinese women rose 6.5% year on year in the period, while that
are consumers, as well as investors. It is expected of the food manufacturing sector climbed 7.4%
that female-driven evolution in consumption year on year, according to the ministry. The sector
behavior and household structure would favor of wine, beverage and refined tea manufacturing
asset management and insurance. In 2020, female saw its industrial added value surge by 15.4% over
investors controlled 33% of total global personal 2021. In the January-February period, retail sales of
discretionary wealth, up from 31% in 2016, and grain, oil and food hit 310.26 billion RMB (US$48.85
the figure is expected to further increase to 35% by billion), up 7.9% year on year, while those of
2025, according to a report from UBS Global Wealth beverages and tobacco and alcohol rose 11.4% and
Management (China Daily, “Women’s Spending 13.6%, respectively (Xinhua, “China’s Food Industry
Power Grows in China”). Posts Steady Growth in Production, Sales”).
Food and Beverage Textiles
Major beverage producers in China registered China's exports of textile and apparel
double-digit growth in output in 2021, which maintained growth momentum in the first four
is expected to continue into 2022 and beyond. months of 2022, said the China National Textile
In 2021, major beverage producers saw their and Apparel Council, citing data from Chinese
output rise 12% year-on- year to over 183 million customs. Textile and apparel exports rose 8.65%
tons, according to the Ministry of Industry and year on year to US$95.84 billion from January to
Information Technology. In December 2021 April, the data showed. Textile exports reached
alone, the beverage output amounted to 13.59 US$48.82 billion, up 11.14% from 2021, and
million tons, up 8.3% year-on-year. Major apparel exports were US$47.02 billion, an increase
producers refer to companies with annual of 6.17% year on year. In April alone, the country's
revenue of more than 20 million RMB which is textile exports edged up 1.63% year on year to
about US$3.16 million (Xinhua, “China’s Beverage US$23.59 billion (Xinhua, “China’s Textile, Apparel
Industry Records Solid Growth in 2021”). Exports Up 8.65% in First Four Months”).
258
