NEWS
NEWS
Your location:
Homepage
/
/
/
[CMBC Research丨Industry Report] Development and Trend Analysis of China's Liquor Industry

[CMBC Research丨Industry Report] Development and Trend Analysis of China's Liquor Industry

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2021-08-12
  • Views:0

(Summary description)According to data from the China Liquor Industry Association, in 2020, there will be 1,887 wine-making enterprises above designated size in the country, and the total wine-making output will be 5,407,400 kiloliters, a year-on-year decrease of 2.21%. The trend of the wine industry's production capacity continues to decline. Among them, the regulated liquor companies are the main force, 1040, accounting for nearly 55%, and the total brewing output is about 7,407,300 kiloliters, a year-on-year decrease of 2.46%; the regulated beer, wine, rice wine, fermented alcohol and other liquor production companies are 346, 130, 102, 86 and 183, the total output of beer and wine was 341111, 413,300 liters, down 7.04% and 6.00% year-on-year, and the total output of fermented alcohol was 9,242,500 liters, an increase of 24.26% year-on-year.

[CMBC Research丨Industry Report] Development and Trend Analysis of China's Liquor Industry

(Summary description)According to data from the China Liquor Industry Association, in 2020, there will be 1,887 wine-making enterprises above designated size in the country, and the total wine-making output will be 5,407,400 kiloliters, a year-on-year decrease of 2.21%. The trend of the wine industry's production capacity continues to decline. Among them, the regulated liquor companies are the main force, 1040, accounting for nearly 55%, and the total brewing output is about 7,407,300 kiloliters, a year-on-year decrease of 2.46%; the regulated beer, wine, rice wine, fermented alcohol and other liquor production companies are 346, 130, 102, 86 and 183, the total output of beer and wine was 341111, 413,300 liters, down 7.04% and 6.00% year-on-year, and the total output of fermented alcohol was 9,242,500 liters, an increase of 24.26% year-on-year.

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2021-08-12
  • Views:0
Information

1. Development of the wine industry



(1) The overall development of the wine industry

According to data from the China Liquor Industry Association, in 2020, there will be 1,887 wine-making enterprises above designated size in the country, and the total wine-making output will be 5,407,400 kiloliters, a year-on-year decrease of 2.21%. The trend of the wine industry's production capacity continues to decline. Among them, the regulated liquor companies are the main force, 1040, accounting for nearly 55%, and the total brewing output is about 7,407,300 kiloliters, a year-on-year decrease of 2.46%; the regulated beer, wine, rice wine, fermented alcohol and other liquor production companies are 346, 130, 102, 86 and 183, the total output of beer and wine was 341111, 413,300 liters, down 7.04% and 6.00% year-on-year, and the total output of fermented alcohol was 9,242,500 liters, an increase of 24.26% year-on-year.

In addition, in 2020, the total sales revenue of enterprises covered by the national winemaking regulations totaled 835.3 billion yuan, and the total profit reached 179.2 billion yuan. The two indicators increased by 1.36% and 11.71% year-on-year respectively.

(2) Overall operation of listed wine companies

In 2020, the operating income of listed wine companies will continue to grow (see Figure 1), and the scale will exceed 300 billion yuan, but the growth rate will continue to decline to 4.21% (the level five years ago). The industry's net profit also showed a similar trend (see Figure 2), with the scale breaking through 90 billion yuan, and the growth rate dropped to 11.55 percent. In addition, in the context of the in-depth development of new sales channels such as group purchases and direct sales, the sales expenses of the wine industry declined for the first time in two decades. 31.38%, ROE and ROA reached 22.66% and 16.21% respectively.

Figure 1 Revenue scale and growth rate of listed wine companies in the past ten years

图片

Data source: WIND

Figure 2 Net profit and growth rate of listed wine companies in the past ten years

图片

Data source: WIND

In terms of sectors, the total operating income of the five sub-sectors of liquor, beer, wine, rice wine and other alcoholic beverages in 2020 will be 2,323, 507, 76, 29, and 3.2 billion yuan, respectively. Correspondingly, the net profit margins of the above-mentioned sectors reached 40%, 8%, 8%, 16% and 14%.

Figure 3 Revenue, net profit margin and market value (bubble size) of the liquor sub-industry in 2020

图片

Data source: compiled by China Minsheng Bank

 

2. Analysis of the operation of key sub-industries


 

(1) Increase in both liquor sales revenue and profit

Although the 2020 epidemic has reduced residents’ outing activities and consumption, the liquor industry still has resilience. Looking at the overall situation, the sales revenue of regulated liquor companies was 583.6 billion yuan, and the total profit reached 158.5 billion yuan (accounting for about 70% and 88% of the total sales revenue and total profit of the national wine-making regulations). Both indicators increased and increased. The speed is 4.61% and 13.35%.

From the perspective of listed companies, the 19 listed liquor companies have a total revenue of 224.2 billion yuan and a total net profit of 95.9 billion yuan, an increase of 6.22% and 11.41% respectively year-on-year. The operating growth is good. Specifically, Kweichow Moutai, Wuliangye, Yanghe, Luzhou Laojiao, Shunxin Agriculture, and Shanxi Fenjiu's six companies have revenues of more than 10 billion yuan (see the table below). At the same time, most of the above (5/6) ) The total income and net profit of enterprises have both risen to varying degrees. However, among the 11 companies with revenues of less than 10 billion yuan, most (7/11) total revenue and net profit have declined compared with 2019.

Table 1 Total operating income and net profit of listed liquor companies in 2020

图片

Data source: compiled by China Minsheng Bank

From the perspective of market structure, the liquor industry is in a very oligopolistic stage. Last year, with the further strengthening of the leading effect of enterprises such as "Mao Wu Yang Lu Fen", the industry concentration increased again. In 2020, the market share of the top 3 and 5 companies will increase to 67% and 80% respectively (see the table below), and the HHI index will exceed 2000. It is expected that the leading effect and scale effect will continue to be prominent in the later period, and the market share of large enterprises may continue to increase.

Table 2 Concentration of the liquor industry in the past two years

图片

Data source: compiled by China Minsheng Bank

 
(2) Beer sales revenue and profit fell and rose

From the overall situation, the sales revenue of regulated beer companies was 146.9 billion yuan, down 6.12% year-on-year, and the total profit was 13.4 billion yuan, up 0.47% year-on-year.

From the perspective of listed companies, the overall operation of domestic listed beer companies in 2020 is in good condition. Chongqing Beer, *ST Xifa, Tsingtao Beer, Zhujiang Beer, Huiquan Beer and Yanjing Beer have ROEs of 107.47%, 33.04%, 11.06%, respectively. 6.51%, 2.50% and 1.49%. In terms of net sales margin, Zhujiang Beer, Chongqing Beer and Tsingtao Brewery's indicators are all above 5%, reflecting the good level of business management. In terms of total asset turnover rate, Chongqing Beer is much higher than others, indicating its strong sales capacity and higher asset utilization efficiency. In terms of financial leverage, most companies such as Tsingtao Brewery and Yanjing Brewery are within 2 times, and their debt levels are low.

Table 3 DuPont analysis of listed beer companies in 2020

图片

Data source: compiled by China Minsheng Bank

 
(3) Both wine sales revenue and profit decline

In recent years, my country's wine market has continued its downturn. Looking at the overall situation, the sales revenue of the regulated wine companies is 10 billion yuan, and the total profit is 13.4 billion yuan. Both indicators have declined significantly (6%, 30%).

 

Third, the analysis of the industry trend in the later period


Last year, the liquor industry was resilient, the beer industry continued to upgrade, and the performance of wine and rice wine was poor. In the future, wine products will continue to develop in high-end and quality, and sales channels will be diversified and convenient:

First, Maotai-flavor liquor is in a hot cycle, and the "maoxiang hot" continues. Driven by the continuous promotion of consumption upgrades, liquor companies further lay out their mid-to-high-end products. The Matthew effect of “the stronger the stronger” is intensifying. The leading advantage of Maotai-flavor liquor may be consolidated again, and the market share is expected to continue to increase. In 2020, the scale and profit of sauce and wine will be about 150 to 63 billion yuan. The entire industry is in the "Silver Era". In the future, the scale and profit margin may triple, exceeding 500 to 200 billion yuan.

The second is the transformation and upgrading of beer to high-end. In recent years, beer manufacturers are facing the challenge of transitioning to high-quality growth. The proportion of high-end and high-value-added product lines of large factories has gradually increased. For example, Tsingtao Brewery has deployed new product lines such as classic 1903 and Pearson, and Zhujiang Beer made snow castles and craft breweries. For high-end products, Yanjing Beer has launched personalized products such as Yanjing U8 and Yanjing 7th. The structural upgrade and adjustment is expected to increase the selling price and increase the profit steadily.

Third, as food safety issues have become a hot spot of public concern, small categories such as "organic wine", which represent the concept of high quality and health, have gradually been welcomed by the market, but factors such as high cost and low yield have restricted their development prospects.

Fourth, wine manufacturing companies perceive consumers’ emphasis on consumer experience and convenience, and actively embrace new channels. This has led to the rapid development of wine group purchases and live delivery of goods, and the customer reach of wine products has become more diversified and traditional The share of offline channels such as supermarkets, specialty stores, and large and medium-sized hotels is facing an impact, and the competitive advantages of wine companies with strong content marketing capabilities will gradually be highlighted and sales efficiency will continue to increase.

 

Scan the QR code to read on your phone

Relevant information

Feedback

留言应用名称:
客户留言
描述:
验证码

Contact 

Tel+86(756)8679161

Add:No. 8, Pingxi 10th Road, Nanping Science and Technology Industrial Park, Zhuhai

Email:skycrafts@163.com

er

Sweep and pay attention to us

More wonderful things are waiting for you!

Online customer service
Customer service hotline
+86(756)8679161 +86(756)8679161
Service time:
8:30 - 18:00
Customer service group:
在线客服

Copyright © 2021  ZHU HAI SKY TECHNOLOGY CO.,LTD