Abstract:China is one of the world's largest producers and consumers of vermicelli, and an important exporter of vermicelli. In the past few years, with the continuous growth of China's economy and the rising consumer demand for healthy food, the consumption of domestic fans has increased. At the same time, Chinese fans have gradually expanded their influence in the international market, and the export volume has shown a steady growth trend. Mainland vermicelli products are mainly exported, and the export volume is much greater than the import volume. In 2023, the import and export volume of mainland vermicelli will be 81.69 tons and 112,900 tons respectively. In the future, the mainland vermicelli industry will develop towards diversification, production process upgrading and branding.
1. Definitions and Classification
Vermicelli is one of the common foods in China, which is a silky food made of mung beans and sweet potato starch, hence the name vermicelli. It is often called vermicelli silk and winter powder (mainly in Taiwan). There are many varieties of vermicelli, which can be divided into mung bean vermicelli, pea vermicelli, broad bean vermicelli, konjac vermicelli, and more starch vermicelli, such as sweet potato vermicelli, sweet potato vermicelli, potato vermicelli, etc. There are many kinds of fans according to their opening associations, such as thick, thin, round, flat, square and flake.
Second, industry policies
1. Competent departments and regulatory systems
The competent authorities of the vermicelli industry are mainly the Ministry of Industry and Information Technology, the State Administration for Market Regulation, etc. Main responsibilities of the Ministry of Industry and Information Technology: As a constituent department of the State Council, the Ministry of Industry and Information Technology is mainly responsible for macro guidance and policy formulation in the vermicelli industry. Participate in the formulation of industrial policies and industrial development plans related to the vermicelli industry, and guide the healthy development of the vermicelli industry. The State Administration for Market Regulation is mainly responsible for the comprehensive supervision and management of the market, the maintenance of market order including the vermicelli industry, and the protection of consumer rights and interests. Guide and supervise the law enforcement efforts of local market regulation departments on the vermicelli industry, and ensure the lawful operation of the industry. Formulate and implement laws, regulations and standards related to the vermicelli industry, and provide legal guarantee for the standardized development of the industry.
The self-regulatory organization of the vermicelli industry is mainly the Vermicelli Industry Working Committee of the China Food Industry Association. The Vermicelli Industry Working Committee of China Food Industry Association is mainly responsible for formulating vermicelli industry norms to ensure the orderly competition and healthy development of the industry. Set up an expert working committee and a legal working committee to provide professional and legal support to the industry. Carry out industry self-assessment, self-inspection, and self-discipline activities, and strengthen industry self-management and restraint. Apply for the formulation of relevant national standards for fans, and establish a leading group for the drafting of national standards. Promote the implementation of national standards in the industry, improve the quality and safety level of vermicelli products, etc.
2. Relevant policies
In recent years, the mainland government has introduced many relevant policies to promote the development of the vermicelli industry, such as the "Guiding Opinions on Promoting the High-quality Development of the Catering Industry", which proposes to improve the quality of catering services, strengthen quality and safety, implement the "four strictest" requirements of food safety, implement food safety risk classification supervision, strictly inspect the purchase of food raw materials, strictly control the entry of food raw materials, and resolutely stop food and beverage waste. Emphasizing the improvement of catering service quality, prompting vermicelli enterprises to pay attention to product quality, from raw material procurement to production and processing to finished product delivery, every link must be strictly controlled to ensure that the quality of the final product meets high standards. The "four strictest" requirements (the most stringent standards, the strictest supervision, the most severe punishment, and the most serious accountability) put forward in the policy will force the vermicelli industry to strengthen the construction of the quality management system, improve the level of food safety, and reduce the occurrence of food safety accidents. The policy will promote the development of the vermicelli industry in a more standardized, safe and efficient direction, and enhance the competitiveness and sustainable development of the entire industry.
3. Industry barriers
1. Raw material supply barriers
The production of vermicelli is inseparable from high-quality starch raw materials, such as mung bean starch, corn starch, tapioca starch, wheat starch, etc. The stability and quality of the supply of these ingredients are directly related to the quality of the vermicelli. For new entrants, it is not easy to establish a stable raw material supply chain. On the one hand, it is necessary to establish long-term cooperative relations with high-quality raw material suppliers to ensure the continuous supply and quality of raw materials; On the other hand, it is also necessary to deal with the fluctuation of raw material market prices and do a good job in cost control. Therefore, the supply of raw materials is a big challenge for new entrants to the vermicelli industry.
2. Food safety barriers
Food safety barriers are one of the important barriers to entry in the vermicelli industry. With the improvement of consumers' requirements for food safety and the strict implementation of national food safety regulations, the vermicelli industry is facing higher food safety requirements. Only enterprises that have basic production conditions and can ensure food quality and safety can obtain food production licenses and health licenses. In addition, export products also need to meet the strict import inspection and quarantine standards of foreign countries. These stringent food safety standards make it more difficult for new entrants to invest more money and technology to ensure product quality.
3. Brand barriers
Brand barriers are another important barrier to entry in the fan industry. In the fan market, brand awareness and market recognition have an important impact on consumers' purchase decisions. Well-known brands tend to have higher market share and consumer loyalty, which makes it difficult for new entrants to gain market recognition in the short term. In order to build brand awareness, new entrants need to invest a lot of money in brand publicity and promotion, and at the same time, they also need to continuously improve product quality and service levels to win the trust and reputation of consumers. As a result, branding is a huge challenge for new entrants to the fan industry.
Fourth, the industrial chain
1. Analysis of the industry chain
The upstream of the vermicelli industry chain is mainly for the production of various starches required for vermicelli, including mung bean starch, corn starch, tapioca starch, wheat starch and potato starch. the middle of the industrial chain is the production and manufacturing of vermicelli; The downstream of the industrial chain is mainly sold to consumer terminals through sales channels such as restaurants, wholesale markets, supermarkets, convenience stores, and e-commerce.
From the upstream point of view: starch is the main raw material for vermicelli production, and the stability and quality of its supply directly determine the quality and production cost of vermicelli products. Secondly, the fluctuation of starch prices will put pressure on the cost control of vermicelli production enterprises. When the price of starch rises, if the fan business is unable to pass on the increased cost to consumers, its profit margins will be compressed. On the contrary, when the price of starch falls, the cost pressure of vermicelli enterprises will be reduced, which is conducive to improving profitability.
From the downstream point of view: the end consumer demand in the downstream of the industrial chain is the key factor to promote the development of the vermicelli industry. With the increasing demand of consumers for healthy, delicious and convenient food, the market demand for vermicelli as a convenient, fast and nutritious food is also expanding. The development trend of downstream industries, such as the rapid growth of the hotel catering industry and the takeaway industry, has also driven the sales growth of vermicelli products.
Note: This article is transferred from the Zhiyan Industry Encyclopedia platform, if you need to get more industry information and customized services, you can enter the Zhiyan Consulting search to view.
Zhiyan Industry Encyclopedia is a production and research tool platform launched by Zhiyan Consulting, which is committed to providing you with a full range of encyclopedic industry information query services. Zhiyan Consulting practices the corporate mission of driving industrial development with information, improves and enriches enterprise methodology, relies on the industry encyclopedia platform to enhance the value of information, and continues to empower industry development and enterprise investment decision-making. As a one-stop systematic research tool for the fan industry, the fan industry encyclopedia comprehensively summarizes the knowledge information of the fan industry, covering the definition, classification, policy, industrial chain, competition pattern, development trend of the fan industry, etc., and relies on information technology to establish an intelligent inter-chain industry knowledge graph, providing in-depth insight and comprehensive information for industry research practitioners and relevant investors.
Zhiyan Consulting takes "using information to drive industrial development and empower enterprise investment decision-making" as its brand concept. Provide professional industrial consulting services for enterprises, including high-quality industry research reports, special customization, monthly topics, feasibility study reports, business plans, industrial planning, etc. It also provides weekly/monthly/quarterly/annual reports and customized data such as regular reports, covering policy monitoring, corporate dynamics, industry data, product price changes, investment and financing overview, market opportunities and risk analysis, etc.