Packaged Food Market – China October 2014
Executive Summary Market
Drivers & Challenges
Trends
Packaged food industry is one of the growing sectors in China and has attracted a number of players Rising middle class income and growth in retail industry have also contributed to its rising popularity
Drivers
Challenges
Growth in retail industry Rising middle class and increasing ability to pay Increase in the production of agricultural products Changing urban lifestyle Improvement in packaging technology
Varying consumer behavior and perception Poor logistics infrastructure Overdependence on urban population Active unorganized market
Demand for convenience packaging Internet retailing for packaged food Demand for healthier packaged food
SAMPLE Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators •Introduction •Market Overview •Value Chain •Distribution •Import & Export •Drivers & Challenges •Government Rules & Policies •Trends •Competitive Landscape •Strategic Recommendations •Appendix PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Packaged food market in China has been growing steadily and has shown strong investment opportunities China Packaged Food Market – Overview (1/2)
SAMPLE
• Text
Market Size & Growth USD bn X
0 2013
2014e
2015e
2016e
PACKAGED FOOD MARKET IN CHINA 2014.PPT
2017e
2018e 4
Sales of drinking milk products, yogurts and sour milk…
SAMPLE
China Packaged Food Market – Overview (2/2) Packaged Food Break – Up (2013) Baby Food
Noodles
Bakery
Oils and Fats
Canned/Preserved Food
Pasta
Chilled Processed Food
Ready Meals
Confectionery
Sauces, Dressings and Condiments
Dairy
Snack Bars
Dried Processed Food
Soup
Frozen Processed Food
Spreads
Ice Cream
Sweet and Savoury Snacks
Meal Replacement
Text
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products are projected to increase in the next five years
SAMPLE
China Packaged Food Market – Overview (2/2) Packaged Food Break – Up (2018e) Baby Food
Noodles
Bakery
Oils and Fats
Canned/Preserved Food
Pasta
Chilled Processed Food
Ready Meals
Confectionery
Sauces, Dressings and Condiments
Dairy
Snack Bars
Dried Processed Food
Soup
Frozen Processed Food
Spreads
Ice Cream
Sweet and Savoury Snacks
Meal Replacement
Text
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Import distribution of packaged foods play a significant role for entry of foreign players Import Distribution Channel 1
Text
2
Text
3
Text
Foreign Country 1
3
2
Domestic Country
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Entry strategy for foreign players into the packaged food market... Entry Strategy for Foreign Players (1/2)
Hypermarkets
• Text
Supermarkets
• Text
SAMPLE
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Consumption trend of packaged food products in China... Packaged Food Market – Regional Distribution (1/3)
Eastern China
• Text
SAMPLE Central China
• Text
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Import and Export of Packaged Food Products Prepared or Preserved Meat – Imports
Major Importing Nations – Value Wise (2013)
USD mn
United States of America
6
China
X
Taipei, Chinese Thailand
2
Others
0 2010
2011
2012
2013
Prepared or Preserved Meat – Exports
Major Exporting Nations – Value Wise (2013)
USD mn Japan
Y
2,000 1,500
Hong Kong, China United Kingdom
1,000
Philippines
500 0
Others 2010
2011
2012
2013
Note: HS Code 1602 Prepared or preserved meat, meat offal or blood, nes PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Increase in production of agricultural products to accelerate growth of packaged food industry Increase in the Production of Agricultural Products
Impact
• Text
SAMPLE Growth in Production of Agricultural Products (mn tons) 2013
2023e
C
A B
Rice
Wheat
D
Corn
Meat
E
F
Eggs
Milk
PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Seafood 11
Food packaging regulations are formulated to strengthen the packaged food industry … Food Packaging Regulation in China – Overview (1/2)
• Text
SAMPLE
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Internet retailing continues to expand its presence in the Chinese market Internet Retailing for Packaged Food • Text
SAMPLE
Retailers and manufacturers explore internet retailing, in order to increase sales
Reasons for Growth of Online Retailing of Packaged Food
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Porter’s Five Forces Analysis Impact Medium
Threat of New Entrants • Text Impact Medium
Impact Low Impact High Bargaining Power of Suppliers
Bargaining Power of Buyers Competitive Rivalry
• Text
• Text
• Text
SAMPLE
Impact Medium Threat of Substitutes
• Text
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Competitive Benchmarking (1/5) Public Trading Comparables Henan Shuanghui Investment & Development Co. Ltd.
Inner Mongolia Yili Industrial Group Co. Ltd.
Tingyi Cayman Islands Holding Corp.
Uni-President China Holdings Ltd.
Want Want China Holdings Ltd.
Market Capitalization (USD mn) Share Price (USD)
EV/EBITDA (x)
SAMPLE
EV/Revenue (x)
PE Ratio Note: Top 5 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as on 28/08/2014 PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Competitive Benchmarking (2/5) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Gross Margin
%
Company A
• Text
Operating Margin
Net Margin
Company B
Company C
SAMPLE PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Public: Domestic Company – ABC (1/5) Company Information
Offices and Centres – China
Corporate Address
Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Products and Services Headquarters Category
Products/Services
Key People Name
Products
Designation
SAMPLE PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Public: Domestic Company – ABC (2/5) Financial Snapshot Total Income
Key Ratios Particulars
Net Profit/Loss
USD mn
USD mn
0 2010
2011
2012
2013
Financial Summary • The company reported total income of USD c mn in FY 2013, registering an increase of d% over FY 2012 • The company earned an operating margin of e% in FY 2013, a decrease of f percentage points over FY 2012 • The company reported debt to equity ratio of g in FY 2013, an increase of h% over FY 2012
Total Enterprise Value (USD mn) EPS (USD) PE Ratio (Abs)
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Indicators
2013
Cost Ratios
• The company incurred a net loss of USD a mn in FY 2013, as compared to net profit of USD b mn in FY 2012
Market Capitalization (USD mn)
y-o-y change (2013-12)
Value (28/08/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
18
Public: Domestic Company – ABC(3/5) Key Business Segments
Key Geographic Segments
Meat
Processed Foods - Mainland China
Livestock Feeds
Processed Foods - Export
The PRC
100%
100%
50%
50%
0%
0%
2010
2011
2012
2013
2010
Vietnam
Japan
2011
2012
Rest of Asia Pacific
2013
Business Highlights (1/2) Description
News
Overview
• Text
SAMPLE PACKAGED FOOD MARKET IN CHINA 2014.PPT
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Public: Domestic Company – ABC(4/5) Business Highlights (2/2) Description
News
Production Facilities
• Text
Distribution Network
• Text
Export
• Text
SAMPLE
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Public: Domestic Company – ABC– SWOT Analysis (5/5)
• Text
SAMPLE S
W
O
T
• Text
• Text
• Text
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Strategic Recommendations Technology Improvement • Text
Develop Market Infrastructure
• Text
SAMPLE
Expanding Reach and Availability
• Text
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