What are the characteristics of the food industry?

Looking at China's pet food industry today, one can't help but think of the feed industry in the late 1990s, when all the big players came together and competition intensified. At present, there are more than 50 domestic pet food brands, large and small, among which Xingtai pet food companies in Hebei Province have the largest number of pet food companies. They are called by the industry: the cradle of pet food. Northern Grain has had a great impact on the pet food industry, and it has also stimulated the development of the Chinese pet market. The pet food industry is an interruption of the entire pet industry chain. The upstream industries include raw material cultivation, raw material processing industry, core raw material suppliers, etc.; downstream companies include pet food companies. Most domestic pet owners in the breeding industry and service industry are still in the stage of excessive consumption of pet food from perceptual consumption to ideal consumption. In addition, the price of pet food is not transparent, which gives the pet food industry enough profit margins. Therefore, now every pet food manufacturer can target The national market is shipped, and some companies can even deliver nationwide with a minimum order quantity of 100kg. From this, it is not difficult to analyze the characteristics and development trends of the domestic pet food industry: 1, the overall demand for pet food is relatively small, There must be a certain profit margin to operate the national market, so existing pet food companies should seize the opportunity to lay a solid foundation for future development. 2. The pet market will enter a period of rapid growth, with overall demand increasing. Facing the increasingly huge pet market, the number of companies entering this industry will increase sharply in the short to medium term, competition will intensify, and pet owners will slowly return to rationality, resulting in a reduction in corporate profit margins. Once it is reduced to the point where it cannot maintain its logistics costs, the scale will be relatively small. Small companies will turn to intensive cultivation of the local market (of course, it does not rule out that some low-price winning companies will become companies that rely on OEMs to survive in the future); relatively large companies will set up offices (goods transfer) for their own certain sales areas. stations), reduce logistics costs and improve their own competitive advantages; moreover, they will slowly set up branch factories for their own advantageous areas; this reminds people of Shandong Liuhe in the raw feed industry, and the concept of Liuhe at the beginning of its establishment: a county There is a need for a Liuhe feed mill. Perhaps only then can domestic brands dominate. Therefore, the current situation of pet food is not optimistic. Companies that have already entered the industry need to change their strategies and find the best one that suits them. Don’t be greedy, and those who are on the sidelines should consider it carefully. 3. According to the existing national conditions, the pet food (dry pet food) industry will produce more cost-effective products such as pet premixes and pet concentrates, which are more in line with the needs of the Chinese pet market. Among them, the pet premix market The potential is huge. The current output of pet food companies is insignificant compared to that of feed companies. Therefore, some relatively powerful domestic feed premix production companies can completely improve the core value of pet food production companies if they have a certain foundation in the research and development of pet premixes. Premix, or provide dog premix for dog farms, so that the entire pet industry production chain will be perfected. This cake is well worth the wait. 4. It is worth noting that as a technical difficulty in the upstream of the pet industry: food attractants (including food attractants used in pet health products, pet food food attractants, etc.) have greater room for development, which is a great business opportunity for domestic related enterprises. It also provides a better development platform for practitioners. Hello: What are the characteristics of the industry? At present, China's food industry is still mainly based on the primary processing of agricultural and sideline food raw materials, with a relatively low degree of fine processing, and is in the growth stage. The food industry is a perfectly competitive industry with low concentration, a high proportion of small and medium-sized enterprises, low technical level, serious homogeneity, fierce price competition, and narrow profit margins. With the integration of the industry and the improvement of industry maturity, industry profits are moving toward large enterprises. With rapid concentration, industry leading companies will take on the important task of integrating industry resources. Agriculture is the foundation for the development of the food industry. The degree of processing of agricultural products determines the scale and competitiveness of the food industry. At present, the ratio of agricultural product processing output value to agricultural output value in developed countries is 3:1, while in China it is only 0.5:1; in developed countries, the proportion of grain used for deep processing in total grain output is more than 70%, while in China it is only 8%; The degree of processing of agricultural products is more than 80%, which is less than 50% in China. This is both a gap and a potential. According to the development trend of the food industry in the 11th Five-Year Plan, in the future, China's food market will develop in the direction of convenience and speed; nutrition and health care; diversification, functionality and safety, and the consumption level will gradually improve. The core of future competition in the international food market will focus on the scale and technological level of the processing industry, that is, competing for a larger market share by achieving economies of scale and improving core competitiveness.