China vegetable juice market is projected to grow at a CAGR of 8.96% to reach US$8.149 billion by 2025, from US$4.870 billion in 2019. The aforesaid is substantiated by a plethora of aspects, among which the foremost is the robust retail sector of the country. For instance, in August 2020, the total retail sales of consumer goods were in the order of 3,357.1 billion yuan, up 0.5 % year on year, the first positive growth since this year.Further, the urban consumer goods segment reportedly registered retail sales of 2,927.3 billion yuan, which was reportedly an increase of 0.5 % year-on-year (YoY). Moreover, from January to August, the national online retail sales reached 7,032.6 billion yuan, an increase of 9.5 % YoY, 0.5 percentage point higher than that from January to July. Among them, the online retail sales of physical goods reached 5,865.1 billion yuan, an increase of 15.8 %, accounting for 24.6 % of the total retail sales of social consumer goods. During the same month, the sales of beverages (non-alcoholic) were registered at 199 million yuan (absolute value) which is an increase by 12.9% based on YoY [Source: National Bureau of Statistics of China].
FIGURE: CHINA VEgETABLE JUICE MARKET SHARE, BY type, 2019
Source: Knowledge Sourcing Intelligence Analysis, Sample Figure
Moreover, in the vegetable juice space, there have been certain market developments pertaining to the vegetable juice market in China. For instance, in April 2018, it was reportedly announced by NISSIN FOODS HOLDINGS CO., LTD. (OSE: 2987, SEHK: 1475, TYO: 2897) which has a diversified portfolio in Hong Kong and the PRC that along with Kagome Co., Ltd. (TYO: 2811) it has entered into an agreement to form a joint venture company with a shareholding ratio of Nissin Foods and Kagome to the JV Company would be in the order of 70% and 30% respectively to enter the vegetable juice business in Hong Kong, Macau and Mainland China which is expecting continued growth in the future. Moreover, In April 2020, the Beijing Huiyuan Beverage Food Group Company Ltd. was reported to invest in its eCommerce business and capitalizing on one of the major eCommerce platforms Pinduoduo on which it had recently begun trading. It was reported to launch Huiyuan Card on WeChat Mini Program Mall.
The increase in income availability is another aspect that is expected to drive the growth of china vegetable juice market. To this end, it is pertinent to note that in 2019 the per capita disposable income across the nation was in the order of 30,733 yuan, which is an increase of 8.9 % over that of the previous year or a real increase of 5.8 % after deducting price factors.Moreover, theper capita disposable income of urban households was in the order of 42,359 yuan, which was reported to be up by 7.9 % over that of 2018, or a real growth of 5.0 % after deducting price factors. Additionally, the per capita income of 16,021 yuan, was reported to be up by 9.6 % over that of the previous year, or 6.2 % in real terms after deducting price factors. Also, 2019 registered a YoY growth of retail sales for a beverage(non-alcoholic) to be up by 10.4 % [Source: National Bureau of Statistics of China].