Haitian’s 2024 Outlook: Product Diversification, Revenue Growth & Market Leadership

The condiment industry boasts a rich history deeply rooted in Chinese cuisine and daily life. Over the last decade, the steady demand for condiments has contributed to the stable growth of the sector. The industry is poised for further expansion, driven by evolving consumer preferences, the recovery of the catering industry, and the development of related sectors like prefabricated dishes.

Condiment companies should prioritize long-term stability over short-term gains and speculative approaches. Upholding the principle that "Food is God for the People" highlights the critical need for unwavering quality and integrity in food production. To ensure sustainable growth in the condiment industry, companies must focus on enhancing product quality, delivering genuine value, and prioritizing food safety.

As a result, Haitian, China's largest soy sauce manufacturer, is making significant strides in diversifying its product portfolio and distribution channels to ensure long-term growth. Despite facing subdued demand, the company remains confident about its prospects, particularly with the adaptive strategy and turning to pre-made food, a trend that has gained momentum in China.

In 2023, Haitian maintained its dominance in the condiment sector, producing and selling over 4 million metric tons (mmt) of food products, making it the industry leader.

According to the 2023 China Brand Power Index (C-BPI), Haitian has consistently topped the soy sauce industry for13 consecutive years, condiments for four straight years, and oyster sauce for four consecutive years.

Important Products and Pricing

Haitian is celebrated for its extensive range of sauces and flavoring products, which are staples in Chinese cuisine and beyond. Some of the most notable products include:

• Soy Sauce: The company's flagship product, available in various types and sizes, catering to different tastes and culinary needs.

Figure 1: Haitian Soy Sauce

Source: Haitian Food

• Oyster Sauce: Known for its deep, savory flavor, this product is a favorite in many Asian dishes.

Figure 2: Haitian Oyster Sauce

Source: Haitian Food

• Vinegar: A versatile ingredient used widely in cooking and as a condiment.
• Cooking Wine: Essential for adding depth and complexity to traditional recipes.

Pricing for these products varies based on type and packaging size. For example, a standard bottle of soy sauce may be priced between USD 1.49 and USD 5, with premium versions commanding higher prices. For example, a 25.36-fluid ounce (fl oz) bottle of Haitian Premium Soy Sauce is priced at USD 4.29 on the Yami online sales platform, where it has received a high review mark of 4.9 stars (out of five) in 259 customer feedback reviews. Customers appreciated the Haitian Premium Soy Sauce for its excellent taste, ease of use, versatility, and suitability for family meals.

Figure 3: HAITIAN Premium Soy Sauce

Source: Yami

Revenue and Financial Performance

Haitian has shown a consistent growth trajectory in revenue. Although the company experienced a slowdown in sales during 2023, with a USD 3.46 billion revenue, an 11.50% year-over-year (YoY) decrease from the 2022 revenue of USD 3.91 billion, it is projected to achieve a revenue growth of 7.5% YoY in 2024. Based on the latest information from Haitian financial reports, company revenues have reached USD 3.59 billion so far in 2024. This positive outlook reflects the company's strategic initiatives and resilience in market challenges.

Shift to Newer Condiment Categories

China's pre-made food sector has expanded significantly in recent years, fueled by a growing demand for healthier and more convenient options and the introduction of innovative products. Furthermore, the industry has adopted new processing procedures and supply chain innovation technology.

On February 13, 2024, the Communist Party of China Central Committee and the State Council issued the No. 1 Central Document, which, for the first time, emphasized the necessity of fostering and developing the pre-made food industry.

In response, Haitian is expanding its product mix to include newer condiment categories with the launch of two pre-made fish products, golden soup and grilled fish with green peppercorns, priced USD 4.61/box and USD 8.39/box. This shift is expected to impact the company's profit margins in the 2024-2027 period as they adapt to changing consumer preferences and market demands.

Figure 4: Pickled Fish in Golden Soup and Grilled Fish with Green Peppercorns

Source: FoodTalks

Future Outlook

Haitian is poised for a promising future by focusing on product diversification, channel expansion, and continuous innovation. These strategic efforts are expected to drive long-term growth, helping the company overcome market challenges and maintain its flavoring and food industry leadership.