Industrial Classification and Feature (5) – Essential consumer goods industry

F&B Industry

The food and beverage industry includes various industries such as agricultural and marine products, processed and fresh foods, food ingredients, distribution, and food service industries.

The primary food processing industry that processes grain is relatively less sensitive to the economy, but is affected by raw material prices and exchange rates. The secondary processed food industry is more sensitive to economic conditions than the foodstuffs and is also affected by exchange rates.

As the F&B industry is already entering the mature market, we are responding to the market with premium products and price hikes. In addition, the aging population is rapidly advancing demographically, which is regarded as a negative situation for the food and beverage industry, which is mainly consumed by young people.

The food and beverage industry is a market that is led by a relatively small number of companies with relatively low resilience. In addition, stable cash flow occurs because distribution networks and facility investment act as barriers to entry.

The food and beverage industry is diversified into a variety of industries, including primary materials, secondary processed foods, alcoholic beverages and beverages. In addition, relatively conservative management is carried out and a holding company system is operated. In some cases, we will diversify our business.

The food and beverage industry includes the summer season, the winter season, and holiday specials. Therefore, there is a difference in sales depending on whether you have a hit product or not.

Variables that can affect the F&B industry include sales volume, sales prices, market share, international grain prices, and exchange rates. It also try to secure growth engines through mergers and acquisitions or to increase market dominance through synergy with existing industries.

Representative stocks in the F&B industry(KOSPI/KOSDAQ)

  • First material processing: CJ제일제당, 삼양사, 대한제당, 대한제분, 영남제분, 우성사료, 선진, 대상팜스코, 사조해표, 오뚜기, 매일유업, 남양유업 etc.
  • Secondary material processing: 롯데칠성, 농심, 오뚜기, 삼양식품, 롯데제과, 오리온, 크라운제과, 해태제과식품, 하이트진로, 롯데푸드, 빙그레 etc.

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