Fast consumer food development see good food machinery can share a piece of the soup

Fast-moving consumer food industry is a typical fast-moving consumer goods industry, which mainly relies on fast turnover and consumers' repeated purchase and consumption to expand the scale and business income. With the increasing level of modernization and the quickening pace of life, the industry continues to grow.
The pace of urbanization has accelerated, and the fast-moving consumer food market has witnessed explosive growth.
The Chinese government has included "deep urbanisation" as one of its policy goals for the next decade. Currently, China's urbanization rate is 51 percent. Assuming that China's urbanisation rate reaches 60 per cent by 2020, 120 million more people will be living and working in cities. According to a survey, per capita food and beverage consumption in urban areas is 2.5 times that in rural areas, and the gap has been widening since 1985. Assuming this trend continues, total urban food consumption will increase by 85 percent to 7 trillion yuan by 2020. The changing demographics will create a huge potential market for food and beverage companies.
It is expected that the higher the urbanization rate, brand fast-moving consumer food will be more favored by consumers. The US, Japan and Oceania all have an urbanization rate of over 70% (i.e., about 20 percentage points higher than China), and their per capita consumption of fast-moving consumer food is 10-20 times higher than China's. There is no doubt that branded companies will benefit more than ordinary companies as urban residents' demand for fast-moving consumer foods increases significantly. Even in countries where GDP per capita is at the same level as China (e.g. Russia, Brazil and Mexico), their consumption of FMCG per capita is 3-8 times that of China. This shows that China's fast-moving consumer food industry is still in the early stage of development, and there is still a lot of room for growth in the future. The fast-moving consumer food industry is expected to grow faster than overall GDP in the next decade.
The FMCG sector, which accounts for only a small portion of household spending and is also a basic consumer product, is relatively defensive during the GDP growth slowdown. They are highly defensive during downturns. By comparing the data of food industry revenue, beverage industry revenue, GDP growth rate and CPI between the first quarter of 1999 and the second quarter of 2012, it can be seen that the food and beverage industry has maintained a growth rate of more than 10%.
Fast consumer food development trend is so good, food machinery can share a piece of the soup.
Most of the food for sale that consumers see on the shelves at ordinary times is strictly processed by factories, then packaged and formed, and transported to consumers. The processing link is inseparable from the close contact with food machinery and equipment. The development of food and food machinery complement each other, especially in the context of the great development of modern industry, more and more food machinery into food processing. In addition, the increase of labor cost also makes food processing enterprises choose machine production, which not only effectively controls the cost, but also improves the efficiency.
The good development trend of fast-moving consumer food bears witness to the "immortal legend" of the food industry. Food machinery, as an important part of the food industry, directly serves food. It is understood that the market size of our food machinery industry reached 7.2 billion yuan in 2006, 8.5 billion yuan in 2007, a year-on-year growth of 18.1%, 9.7 billion yuan in 2008, a year-on-year growth of 14.1%, 11.3 billion yuan in 2009, a year-on-year growth of 16.5%, and 13.6 billion yuan in 2010, a year-on-year growth of 20.4%. During the 12th Five-Year Plan, the market scale of Chinese food machinery industry will continue to maintain a rapid growth trend, and it is expected that the market scale will reach 39.8 billion yuan by 2015.