The trend of the condiment industry in 2022 needs to focus on six changes

As stated at the beginning of the article "Stability and Prosperity - Condiment Industry in the New Era ", "After entering 2020, I suddenly feel that the times we live in are changing, and the world is also undergoing great changes
.
Just like the end of an article As a chapter opens a new chapter, we need to re-understand the world, think about ourselves and adapt to the environment
.
This change is both gradual and rapid, so that many people find it difficult to adapt and cope, and get lost in the torrent of the times
.
But there are also a lot of people who are starting to see an opportunity to reverse
.
”

 

Indeed, after years of tempering and precipitation, we have entered a critical period of development, and we urgently need to think carefully, identify the direction, and develop accurately
.
The new year has come, the industry and enterprises are facing greater challenges and will also usher in new opportunities
.
In order to promote more industry enterprises to find the right direction and develop quickly and orderly, the information department of the association specially edited and sorted out the core of the industry development proposed by Wei Xiangyun, executive chairman of China Condiment Association, and Bai Yan, executive vice chairman and secretary general in 2021.
Key points to share with the industry
.

 

Focus on six major changes

 

○ Pay attention to whether the industry profit growth rate can stabilize and rebound

 

○ Pay attention to the deep impact of changes in consumption structure on condiment consumption trends

 

○ Pay attention to the rhythm of the industry's production capacity release and its impact on the market

 

○ Pay attention to the influence of the Internet on the sales channel system and corporate positioning pattern

 

○ Pay attention to the deep penetration of financial capital into the industry

 

　　○ Pay attention to the opportunities of condiment compounding and integration of regional characteristics

 

　　Stick to the four beliefs

 

　　○ Perseverance: Deliciousness is the core of the development of condiment companies

 

　　○ Persistence: Carrying forward the spirit of entrepreneurship is the foundation for improving the quality of companies (including listed companies)

 

　　○ Persistence: independent development is an important guarantee for the long-term development of the industry

 

　　○ Persistence: improving core competitiveness is the foundation of long-term development

 

　　Pay attention to whether the growth rate of the industry can stabilize and rebound

 

　　After decades of rapid development, China's condiment industry has grown from weak to strong, from small to large, from behind the scenes to the front, and the industry image and brand penetration have gradually increased
.
According to the data of the top 100 famous Chinese condiment brands in 2020 by the China Condiment Association, the total sales of the top 100 shortlisted enterprises is 113.
9 billion yuan, with a compound growth rate of 10.
1% in the past three years; the total output of the top 100 shortlisted enterprises is 1833 10,000 tons, the compound growth rate in the past three years has reached 17.
7%, and the production capacity has been released greatly, maintaining a relatively rapid growth trend
.
But compared to before, the growth rate has slowed down
.

 

　　Up to now, 16 of the listed condiment companies (A shares) have announced their financial reports for the third quarter of 2021
.
In the first three quarters of 2021, the profits of listed condiment companies continued to decline
.
Gross and net profit margins of listed companies are under overall pressure
.

 

　　The total operating income of the 16 listed condiment companies in the first three quarters of 2021 was 60.
506 billion yuan; the total net profit was 8.
837 billion yuan
.
There are 12 companies with positive growth in operating income, accounting for 75% of the 16 listed companies, and 6 companies with a net increase in net profit, accounting for 37.
5% of the 16 listed companies
.

　　In the second half of 2021, leading enterprises such as Haitian Flavor Industry raised the prices of some products according to their business needs
.
The rise in the prices of terminal products will help to mobilize the enthusiasm of channel sales, ease the pressure on business operations, and restore the profits of industrial enterprises to the previous level
.

 

　　Pay attention to the deep impact of changes in consumption structure on condiment consumption trends

 

　　Based on the just-concluded seven census statistics, experts and scholars predict that "China's total population is about to reach its peak between 2025 and 2030, and then it will gradually begin to slowly decline, and negative population growth will become a reality in the near future.
" Only by exploring the urban and rural structure, age structure and consumption structure of consumers can we seize the opportunities of different structures
.
As far as the total number and structure of consumers in China are concerned, they show the characteristics of classification and differentiation
.

 

　　In terms of grading, consumption upgrades that focus on brand, efficiency, and experience are carried out simultaneously with consumption grading that focuses on beauty, peace of mind, and easy availability
.

 

　　At the level of urban and rural structure, high-tier cities are optimistic about high-end consumption, and county and township markets are showing high cost-effective consumption
.
The sinking market has larger-scale users and needs, especially the fourth-tier and below markets have a population as high as 70% of the total population, and the corresponding GDP ratio is also more than 50%.
The future consumption capacity has great potential
.

 

　　At the age structure level, the consumption structure of the elderly group, Generation Z, single people and small family groups also have their own characteristics
.
Accelerated aging will become an important growth driver for industries such as big health, food, tobacco and alcohol, and convenient life services; Generation Z will pay more attention to personalized and self-pleasing consumption; the trend of singles and smaller families will also affect product form, product experience, and consumption frequency.
will have new impacts
.

 

　　Pay attention to the rhythm of the release of industrial production capacity and the impact on the market

 

　　There are many entrants in the condiment industry, including existing competitors, transfer between upstream and downstream, industrial mergers and acquisitions, capital investment and international cooperation.

.
The industry's production capacity is relatively saturated, and competition is mainly reflected in increased concentration and differentiated operations
.
The market competition is fierce, there is a certain amount of involution, and the competition in individual fields is disorderly and inefficient
.

 

　　At the same time, the production capacity of the condiment industry is also expanding rapidly
.

　　In recent years, although the condiment industry has a trend of concentration, due to the characteristics of the condiment industry's own product consumption, the progress of concentration is relatively slow
.
With a large number of new production capacity put into production, the contradiction between industrial supply and demand will become more prominent
.
Large enterprises expand market share with cost and brand advantages, and small and medium-sized production enterprises either transform into subdivisions or withdraw from the market
.

 

　　Pay attention to the influence of the Internet on the sales channel system and enterprise positioning pattern

 

　　With the changes in consumption behavior and consumption patterns, the channel system of the condiment industry is also rapidly iteratively updated, but the three major consumption terminals of condiments remain unchanged, which are still the catering end, the home retail end and the food processing end
.

 

　　With the evolution of the market, condiment companies have had specialized division of labor, and gradually formed three corporate positioning patterns of manufacturers, brand owners and third-party flavor solution service providers
.
The figure shows the basic composition of the current condiment sales channel system, which reflects the entire chain of condiment products from manufacturers to consumers
.
It includes two channels, to B and to C, as well as a variety of online and offline methods
.
At present, a group of condiment companies are positioned as flavor solution service providers, occupying a certain market share and developing rapidly
.
There are also some intermediate channel providers who are positioned as flavor solution service providers.
They combine the industrial chain and supply chain, connect production bases and target customers, seize the frontier needs of the market, concentrate on flavor research, and provide flavor solutions for customers
.

 

　　Customized condiments adapt to C2M's channel change needs and become a potential economic growth point
.
The demand for customized condiments in downstream industries, mainly the catering industry, is becoming more and more obvious
.
Condiment companies have also increased their R&D capabilities for customized products to help the catering industry and food companies achieve innovative development
.

 

　　The layout of downstream related fields such as prefabricated dishes/conditioning kits, semi-finished dishes, and instant food has become one of the outlets for the diversified operation of condiment companies
.
In particular, condiment brand enterprises with good market reputation have the advantages of flavor research and development and traffic advantages, which is conducive to the penetration of the consumer market and the improvement of the value of a single user
.

　　Pay attention to the deep penetration of financial capital into the industry

 

　　While condiment companies are doing a good job in the industry, they can consider introducing capital at an appropriate stage, so that capital can help the development and growth of the company
.
However, we must also be alert to the risk of overheating capital investment in the condiment track, and choose capital rationally and high-quality capital
.

 

　　Although the performance of the condiment field has been lowered, capital is still continuously increasing its entry into this industry
.

 

　　According to Tianyancha data, in 2021, condiment-related companies will raise more than 70 times of financing
.
The specific data are as follows:

　　Pay attention to the opportunities of condiment compounding and regional characteristics integration

 

　　Compound seasoning is one of the fastest growing categories of seasonings
.
According to the data of the top 100 famous Chinese condiment brand enterprises in 2020, the income and unit output income of compound condiment shortlisted enterprises have increased rapidly, the output has been stable and slightly decreased, and the concentration of leading enterprises is low
.
There are 35 shortlisted companies, with a total revenue of 12.
2 billion yuan, and the revenue of the leading companies accounted for 17%; the total output is 710,000 tons, and the output of the leading companies accounts for 17%; the unit output income is 17,147 yuan / ton
.

 

　　Regional specialties have played a very important role in the development of compound seasonings
.
Taking Chuan Tiao (Chuan Tiao is the abbreviation of Sichuan-flavor compound seasoning) as an example, the flavors of Sichuan cuisine are mainly numb, spicy, spicy and fragrant, and emphasis is placed on the use of three peppers and oil.
There are more than 20 kinds of compound flavors, including fish flavor.
Type, spicy type, hot and sour type, red oil type, salt and pepper type, garlic type, ginger juice type and so on
.
In recent years, in line with consumers' pursuit of novel and peculiar consumption psychology, Sichuan cuisine has been continuously innovated and varied on the basis of these traditional flavors, and is especially popular in mass catering and home kitchens
.
With the popularity of Sichuan cuisine and consumers' love for Sichuan cuisine, the Sichuan tune-up industry has encountered a period of good development opportunities and has gradually developed
.
Various types of products are abundant and numerous, product innovation and iteration are rapid, there are many corporate brands, the market is prosperous and the competition is fierce
.

 

　　The organic integration of regional characteristics and condiments will promote further research and innovation of condiment products on the basis of original varieties and flavors, and develop new products to meet and guide consumers' new taste needs
.
It has also created many sub-categories and produced some leading companies in the field of long-tail products
.

 

　　Keeping the heart in change and cultivating new opportunities in crisis

 

　　Looking forward to the future, the pace of development of the times will not stop, and the environment in which enterprises survive is changing rapidly
.
On the one hand, condiment companies must insist on adapting to changes and keep up with the trend of the times; on the other hand, they must have their own perseverance and spiritual core, always adhere to long-termism and professionalism, focus on advantages, deeply cultivate value, and do a good job in the industry in a down-to-earth manner.
Make a good product
.

 

　　Adhere to (1): Deliciousness is the core of the development of condiment enterprises

 

　　In recent years, consumer demand for tastes has become increasingly rich and diverse, both regional and specific groups of people
.
In addition, popular flavors are constantly changing, and flavors such as spicy, numb, and stinky have become the mainstream alternately, which has continued to promote the flavor research and development of condiments
.
The main goal and direction of product development and innovation in the condiment industry is "to make the dishes in restaurants richer and more delicious, so that consumers can taste high-quality food that is as delicious as restaurant dishes at home"
.

 

　　Persistence (2): Carrying forward the spirit of entrepreneurship is the foundation for improving the quality of companies (including listed companies)

 

　　Entrepreneurs are the products of China's reform and opening up, and they are also the darlings of China's capital market
.
China's A-share market provides entrepreneurs with a once-in-a-lifetime opportunity, and it has also become a battlefield for the market economy
.

 

　　The A-share market can set prices for entrepreneurs, and it is also the right way for them to accumulate wealth and realize property income
.
It is a place for them to show their talents, and it is also an effective way for them to pursue a sense of career achievement
.
It is also the inexhaustible source of their self-made, fair wealth and property rights logic
.

 

　　It used to be a despised industry and a little-known company.
In recent years, a group of billionaires and tens of billionaires have emerged through the development of the capital market, which was unimaginable in China's past history
.
This phenomenon has effectively witnessed the greatness and magic of China's A-share market.
The fundamental reason is that the quality of listed companies has been improved, and the entrepreneurial spirit has been brought into full play
.

 

　　This shows how important it is to promote entrepreneurship to improve the quality of listed companies
.

 

　　Adhere to (3): Independent development is an important guarantee for the long-term development of the industry

 

　　The catering industry is the main channel for condiment sales, accounting for about 50%
.
Therefore, condiment companies are very concerned about the construction of catering channels and customer retention
.
The concept that condiment companies are positioned as catering supply chain companies is being mentioned more and more
.
Although this concept strengthens the synergistic relationship between the condiment and the catering industry, it also has certain limitations, which is not conducive to the independent development, brand building and value expression of the condiment industry
.
Condiment companies still need to reduce path dependence to a certain extent and seek the best balance between industrial independence and channel symbiosis
.

 

　　Persistence (4): Improving core competitiveness is the foundation of long-term development

 

　　The fierce competition will inevitably lead to the diversity of competition methods and means of enterprises.
How to find a breakthrough in the homogeneous competition in the Red Sea? How to make your own brand better occupy the minds of consumers, or be different, or come out on top? It has become two questions that condiment companies must answer to improve their core competitiveness
.
However, the competition of concepts based on the general ownership or attributes of products is not long-term, and the focus should be on the improvement of personalized competitiveness such as product functions, scene positioning, technology research and development, taste characteristics and channel control
.

 

　　In the new era, some need to be adjusted and adapted, while others need to continue to persevere and carry forward
.
In 2022, the association secretariat will continue to pay attention to industry trends and deepen services
.
With the new mission of "deeply cultivating innovation and empowering the ecology", we will not slack off and move forward bravely
.