Source | 整点消费 (On-the-hour Consumption) As a staple industry for every household's 'seven daily necessities,' the condiment sector has long been known for its steady development. However, with diversifying consumer demands and channel reforms, this stability is now showing cracks in an era of stock competition. After reviewing the H1 performance of 15 listed condiment companies (excluding NEEQ-listed firms and those primarily engaged in raw materials, grains/oils, or catering), I found that mid-tier listed companies are not as solid as imagined; instead, they have become the biggest 'victims' of intense market competition. Overall, the 15 companies showed positive trends in H1. Among them, 6 achieved growth in both revenue and net profit; 2 saw flat revenue; 4 experienced declines in both revenue and net profit; and 1 each had flat revenue and profit, increased revenue but not profit, and a net loss. However, among the 13 A-share listed companies, 6 saw a year-on-year decline in non-GAAP net profit, indirectly reflecting the immense pressure on mid-tier condiment companies.
'Oligopoly' Effect Evident, Mid-Tier Companies Under Pressure As is well known, the domestic condiment market has always been characterized by a 'one superpower, multiple strong players' structure, which is particularly evident in the financial reports of listed companies. In H1, Haitianweiye led with revenue of RMB 15.23 billion and net profit of RMB 3.914 billion. During the period, Haitianweiye's revenue exceeded the combined revenue of the other 14 companies (RMB 13.969 billion), and its net profit was more than double the total net profit of the other 14 (RMB 1.5685 billion), clearly demonstrating its oligopolistic advantage. From the data of these 15 companies, apart from Haitianweiye, mid-tier companies (with H1 revenue between RMB 1-3 billion) generally face greater pressure. Among them, Zhongju Hi-Tech, Tianwei Food, and Qianhe Weiye, which were thriving in the previous two years, directly showed sharp declines in revenue, net profit, and non-GAAP net profit in H1. Except for Fuling Zhacai, which saw increased revenue but not profit, Hengshun Vinegar achieved double-digit growth in revenue, net profit, and non-GAAP net profit, but this was largely due to a low base in the same period last year. Yihai International performed slightly better, with relatively flat revenue and net profit. In contrast, Lotus Health emerged as a 'dark horse' in H1. In fact, since the wave of domestic brand resurgence, Lotus Health has maintained good growth momentum, and in H1, it became more prominent against the backdrop of peers' struggles. At smaller scales, the highly fragmented nature of the condiment industry is evident. Jiajia Food continued to see revenue shrink in H1 but turned profitable. Zhongjing Food, which sells mushroom sauce, faced challenges with declining revenue and slightly increased profit. The 'cooking wine king' (Laohenghe) improved operations but continued to incur losses, making it the only loss-making company among the 15. Benefiting from the wave of restaurant chain expansion, Richen, which focuses on the catering channel, performed well, but its scale benefits need further improvement.
Soy Sauce: Giants' Game in an Era of Stock Competition As the category with the highest penetration in the condiment industry, soy sauce is gradually entering an era of stock competition. Among traditional soy sauce companies, Haitianweiye leads, successfully overcoming the negative impact of public opinion crises. With revenue of RMB 7.928 billion, it surpassed its historical high for the same period, growing 9.14% year-on-year. This not only demonstrates the company's ability to resist risks and turn situations around but also highlights the dominance of the industry leader. In comparison, 'the second-largest soy sauce player' Zhongju Hi-Tech (Meiweixian) saw its soy sauce revenue decline 16.68% to RMB 1.298 billion; Qianhe Weiye's soy sauce revenue fell 16.09% to RMB 839 million; Jiajia Food's soy sauce revenue dropped 7.41% to RMB 426 million... In other words, among the four listed soy sauce companies, only Haitianweiye achieved growth in H1. In this zero-sum game, Haitianweiye's soy sauce sales increased by RMB 664 million in H1, while the combined soy sauce sales of Meiweixian, Qianhe, and Jiajia decreased by RMB 455 million year-on-year. This means Haitianweiye not only regained market share from these three companies but also eroded over RMB 200 million of market share from other small and medium enterprises. However, not all small and medium enterprises saw declines in soy sauce products. For example, Lotus Health's soy sauce and other condiment products achieved revenue of RMB 60 million, a staggering 916.79% year-on-year increase. In its previous earnings forecast, Lotus Health stated that revenue from products such as matsutake fresh, premium brewed soy sauce, and compound seasonings all grew by over 100%. Additionally, Laohenghe's soy sauce products generated revenue of RMB 16 million, accounting for 11% of its total revenue; Jialong's soy sauce products also entered the trial production stage...
Vinegar and Cooking Wine: Brand Recognition Continues to Deepen As the only listed vinegar company on the A-share market, Hengshun Vinegar's vinegar series products achieved revenue of RMB 739 million in H1, up 8.04% year-on-year; however, in Q2, this category saw a slight decline of 0.97%. Although Hengshun is the 'vinegar king,' it faces 'encirclement' from other giants. During the period, Haitianweiye, the second-largest vinegar player, saw revenue from other condiments including vinegar and cooking wine reach RMB 2.506 billion, up 16.73% year-on-year. Vinegar, as Qianhe Weiye's second-largest business, achieved revenue of RMB 159 million in H1, down 21.51% year-on-year. Jiajia Food's vinegar revenue was RMB 29 million, down 18.65%. As the saying goes, 'wine and vinegar share the same origin,' so most vinegar companies also produce cooking wine. In H1, apart from Haitianweiye, Laohenghe's cooking wine series products achieved revenue of RMB 96 million, up 4.0% year-on-year, accounting for about 66.4% of its total revenue. Hengshun Vinegar's cooking wine revenue was RMB 80 million, down 3.53% year-on-year, with a particularly sharp decline of 18.92% in Q2. Zhu Laoliu's cooking wine revenue was RMB 1 million, down 30.5%. It is clear that for both vinegar and cooking wine, most consumers tend to choose brands with stronger professionalism or higher visibility. However, given the fierce competition in the soy sauce market, many companies are focusing on vinegar and cooking wine in the basic seasoning segment. For example, Zhongju Hi-Tech's 'Chubang' brand has launched a series of cooking wine products (including vintage, convenient, and economical series) and a range of vinegar products (including rice vinegar, white vinegar, aged vinegar, aromatic vinegar, fruit vinegar, and specialty vinegar).
Hot Pot Seasoning: Waiting for the Next 'Windfall' As the 'twin giants of hot pot seasoning,' Yihai International and Tianwei Food both saw declines in their hot pot seasoning products in H1. Yihai International's hot pot seasoning revenue was RMB 1.6828 billion, down 3.7% year-on-year; Tianwei Food's hot pot seasoning revenue was RMB 428 million, down 12.85%. If the leading companies are like this, the situation for small and medium enterprises is predictable. On one hand, the scenario of 'eating hot pot at home' is becoming less frequent, limiting the consumption scenarios for hot pot seasoning. Although the outdoor economy can compensate for some share, it is insufficient to return to the peak levels of special periods. On the other hand, hot pot seasoning is a highly substitutable category, with various compound seasoning products squeezing its market. Additionally, due to growing health consciousness among consumers, some non-spicy hot pot seasoning products are gaining traction, diverting demand from traditional spicy hot pot bases. In the hot pot seasoning field, although Yihai International's scale is much larger than Tianwei Food's, its decline rate is far lower. It is worth noting that Yihai International's H1 performance could have been better if not for reduced sales to related parties. Specifically, Yihai International's revenue from hot pot seasoning sold to third parties was RMB 925 million, up 7.5% year-on-year. This was mainly due to effective new product launches that mitigated the negative impact of declining traditional categories. In H1, Yihai International launched over 50 new products, bringing its total products on sale to over 200 (excluding B-end customized products). Therefore, for the future development of hot pot seasoning, the era of 'big single products' may accelerate its end, replaced by flexibility and diversity similar to the small B-end.
Compound Seasonings: A Hundred Schools of Thought Contend Whether it's soy sauce, vinegar, cooking wine, or hot pot seasoning, all are facing scenario compression from compound seasoning products. Compared to hot pot seasoning, Tianwei Food and Yihai International's compound seasonings, represented by recipe-style seasonings, performed better. Tianwei Food's recipe-style seasonings achieved revenue of RMB 896 million, up 1.06% year-on-year; Yihai International's revenue from compound seasonings was RMB 491.7 million, up 8.2%. The compound seasoning category is broad, with products from companies like Richen and Anji Food falling under it. Richen's sauce-based seasonings achieved revenue of RMB 146 million, down 1.51% year-on-year; while powder-based seasonings achieved revenue of RMB 45 million, up 20.13%. Although Anji Food's overall performance looks decent, its compound seasoning powder, spices, ginger seasonings, and natural extract seasonings all declined to varying degrees, leading to a 6.17% year-on-year decline in its main product category revenue, which is the key reason for its significant drop in non-GAAP net profit. Zhongjing Food's seasoning foods (including Shanghai scallion oil, beef sauce, 2.3° fresh pepper oil, and quick-cooking dish seasonings) achieved revenue of RMB 310 million, down 2.31% year-on-year. Notably, during the reporting period, Zhongjing Food sold seasoning foods such as Zhongjing Shanghai Scallion Oil and Zhongjing Mushroom Sauce through e-commerce platforms like Tmall, JD.com, and Douyin, achieving sales of RMB 106 million, down 10.69% year-on-year. This may be a significant factor dragging down Zhongjing Food's performance. Additionally, for products like chicken essence and chicken powder, although companies such as Zhongju Hi-Tech, Jiajia Food, and Jialong are involved, this large category has long been dominated by Nestlé and Unilever, capturing the vast majority of market share. Future development for local brands will require differentiation through newer products, but so far, no standout products have emerged.