Industries with the Biggest Increase in Profit Margin in China in 2023

1. Chinese Alcohol Production in China

Percentage Point Increase for 2023: 2.5pp

Since 2005, market deregulation, product improvements and a resurgence in the popularity of Chinese alcohol have boosted the industry's performance. From 2005 to 2016, Chinese Alcohol Production industry had maintained a trend of rapid growth, but the output of the liquor industry declined in 2017, and the output in 2017 showed a negative growth. On the one hand, this was due to the joint influence of liquor quality and safety accidents, the government's severe punishment of political corruption, and the multiple prohibitions issued by the Ministry of Transport and the Central Military Commission, which slowed the growth trend of the... Learn More

2. Tire Manufacturing in China

Percentage Point Increase for 2023: 2.0pp

Revenue for the Tire Manufacturing industry in China is expected to rise at an annualized 2.4% over the five years through 2022, to $116.7 billion. This includes anticipated growth of 7.0% in the current year. China's developing Automobile Manufacturing industry (IBISWorld industry report 3721) has been a major driver of demand for tires over the past five years. With increased automobile ownership in China, demand for tires for new cars and replacement tires for existing vehicles has continued to increase over the period. Especially in 2021, industry revenue growth rate reached 10.0%, mainly due to rise in product price. However,... Learn More

3. Iron Ore Mining in China

Percentage Point Increase for 2023: 1.2pp

Revenue for the Iron Ore Mining industry in China is expected to fall at an annualized 1.7% over the five years through 2023, to $109.4 billion. Over 3,400 enterprises operate in the industry, with total employment of 604,225 and expected total output of 983.2 million tons of iron ore in 2023. The COVID-19 pandemic had a negative impact on the whole economy, with downstream steel enterprises delaying resuming work and production at the beginning of 2020. However, as the spread of the virus had come under control in China, the production and sales activities of downstream steel industries had gradually... Learn More

4. Coal Mining in China

Percentage Point Increase for 2023: 0.8pp

Revenue for the Coal Mining Industry in China is expected to grow at an annualized 10.4% over the five years through 2023, including a 12.6 rise to $681.3 billion in 2023. Revenue declined in 2020, and was largely due to demand moving away from coal in favor of cleaner energy sources, decreasing coal prices, competition from lower priced imported coal, and the COVID-19 pandemic. Coal shortage in 2021 caused sharp increase of coal prices, therefore, industry revenue increased to $535.5 billion, up by 68.7% from 2021.

Raw coal output in China is expected to increase from 3.7 billion tons in 2018... Learn More

5. Hydroelectric Power in China

Percentage Point Increase for 2023: 0.6pp

Revenue for the Hydroelectric Power industry is expected to increase at an average annualized rate of 3.6% to $56.7 billion over the five years through 2022. This trend includes a 5.0% increase in the current year. The government's strategy for developing renewable energy in China has had a positive impact on the industry. Additional drivers for industry growth have been power shortages, industry deregulation and the implementation of a market-based pricing mechanism.

As China aims to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060, ACMR-IBISWorld forecasts that revenue for the Hydroelectric Power industry in China will increase... Learn More

6. Engine Manufacturing in China

Percentage Point Increase for 2023: 0.4pp

China's economic growth has driven demand for the machinery manufacturing industries in recent years. The rapid development of many downstream sectors, including engineering machinery, farming machinery and traffic engineering, contributed to the development of the Engine Manufacturing industry in China. Industry revenue is expected to increase at an annualized 5.7% over the five years through 2022, to $71.8 billion. This includes growth of 17.3% in the current year.

Slightly over 806 enterprises operate in the industry, employing approximately 268,675 workers, and total wage costs of approximately $3.3 billion. Profit is expected to account for 6.6% of industry revenue in 2022.

Industry revenue... Learn More

7. Wedding Services in China

Percentage Point Increase for 2023: 0.4pp

Revenue for the Wedding Services industry in China is expected to increase at an annualized 0.7% over the five years through 2022, to total $25.7 billion in 2022. This trend includes expected revenue growth of 4.3% in the current year. In the first half of 2020, many small and medium-sized enterprises in the industry closed due to plummeting demand during the initial COVID-19 outbreak. However, market demand grew significantly in the second half of 2020. The main services provided by the industry include car rentals, master of ceremony services, restaurant decoration, photography and videography services, wedding dress rental and hairdressing.

Over... Learn More

8. Online Games in China

Percentage Point Increase for 2023: 0.4pp

Enterprises in the Online Game industry in China produce (i.e. design and develop) and operate online games. Most online game companies both create and operate their games. However, some online game producers sell licenses to agencies, which are then solely responsible for the operation of the games.

Industry revenue is expected to increase at an annualized 7.5% over the five years through 2023, to $55.2 billion. This trend includes expected growth of 8.2% in the current year. The popularity of online games has grown rapidly in China over the period. As of 2022, the number of online games users totaled 664... Learn More

9. Juice Production in China

Percentage Point Increase for 2023: 0.3pp

Operators in the Juice Production industry in China have experienced fluctuating growth in the past decade, together with China's entire beverage production sector. The proportion of fruit juice beverages consumed in China has been growing as growth in carbonated soft drinks has slowed due to market saturation and health concerns.

Over the five years to 2022, industry revenue has declined at an annualized 1.1%. There are about 568 enterprises operating in the industry, with a total employment of over 106,833 staff.

Industry revenue is expected to total to $20.4 billion in 2022, up by 7.8% from 2021. Total output of fruit and... Learn More

10. Traditional Chinese Medicine Hospitals in China

Percentage Point Increase for 2023: 0.3pp

Driven by government support and increasing demand from patients, the development of the Traditional Chinese Medicine Hospitals industry has accelerated in recent years. Industry revenue is expected to grow at an annualized 8.6% over the five years through 2022, to total $96.5 billion. This trend includes a continued return to growth, with an expected 11.3% increase in 2022, after the decline of 6.3% in 2020, partially due to the COVID-19 outbreak deterring people from visiting hospitals unless necessary.

During the 13th Five Year Plan period, the policy environment related to the Chinese medicine industry continued to be optimized, and government support... Learn More