China frozen food production to hit $11.8bn
As competition in the frozen food market intensifies, manufacturers are increasing investment in product innovation and production capability.
The growth is mainly due to higher 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.
The report claims the four largest firms operating in the frozen food production industry in China in 2013 are; Zhengzhou Sanquan Foods, Synear Group, General Mills (China), and Longfong Group.
No barriers to enter industry
They 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 smaller cities,” a spokesman said.
“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.”
The report said 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.
