HHI Addressable Market: China

Part
01
of five
Part
01

Construction Industry: China

The current market size of the construction industry in China is $3.45 trillion and is expected to reach $4.1 trillion in 2023. The requested historical and forecast data for the construction market in China has been summarized in row 8, columns B-E of the attached spreadsheet.

Overview

  • The construction market in China is divided into the following segments: industrial, commercial, energy and utilities, institutional, infrastructure and residential.
  • Residential construction was the largest market segment in China, with a share of 48.4% in 2018. Other sectors had a significantly smaller market share, infrastructure construction accounted for 15.6%, energy and utilities had 14.1%, while commercial, industrial and institutional construction had 10.9%, 6.5%, and 4.6% market share respectively.
  • The global construction market was worth $17 trillion in 2017, Asia-Pacific was the region with the largest market share (42%), while China was the country with the largest value.

Current Market Size (2019)

  • The market size of the Chinese construction industry in 2019 was $3.45 trillion. (Calculated)

Historical Market Size (2014-2018)

  • The construction market in China was worth $3.3 trillion in 2018 and it had a CAGR of 5.69% (2014 - 2018).
  • The market size of the construction industry in China was $2.64 trillion in 2014, $2.79 trillion in 2015, $2.95 trillion in 2016 and $3.12 trillion in 2017. (Calculated)

Market Forecast

  • According to Global Data, the value of the Chinese construction industry will increase at a CAGR (2019-2023) of 4.54% to $4.1 trillion in 2023.
  • The market size is estimated to be $3.61 trillion in 2020. (Calculated)

Other Insights

  • Residential construction is expected to have 43.3% of the construction industry's total value in 2023.
  • The largest companies by sales in 2018 were China State Construction Engineering Corp. Ltd. ($181.47 million), China Railway Group Ltd. ($112.03 million), China Railway Construction Corp. Ltd. ($110.47 million), and China Communications Construction Company Ltd. ($73,94 million).

Research Strategy

To obtain information about the construction industry in China, we first tried to find a precompiled report with the current size of the Chinese construction market. We searched through various market research publications including ResearchAndMarkets, IBIS World, Global Data, Deloitte and others. Although this approach provided us with several insights for the construction industry in China, there was no information about the current market size. Next, we looked for the current Chinese market share in the global construction industry, hoping that we can use it to calculate the current market size. We scanned databases such as Statista and news articles and industry publications including MarketWatch, Businesswire, Construction Global, and others. These sources only provided us with information about the market share for different industry segments in China, but there was no mention of the current market size. Finally, since there was no other information publicly available, we used the historical data, CAGR values, and estimates to calculate the current and historical market sizes.

Calculations

We used a CAGR calculator to calculate the market size.

Current Market Size (2019)

We entered 4.54% as the CAGR, $3.3 trillion as the starting value and for the number of periods, we entered the number of years between 2018 and 2019, by subtracting the ending year from the starting year (2019 - 2018 = 1).

The calculator gave us the following result: Market Size 2019 = $3.45 trillion

Market Size 2020

We entered 4.54% as the CAGR, $3.45 trillion as the starting value and for the number of periods, we entered the number of years between 2019 and 2020, by subtracting the ending year from the starting year (2020 - 2019 = 1).

The calculator gave us the following result: Market Size 2020 = $3.61 trillion

Market Size 2014

We entered 5.69% as the CAGR, $3.3 trillion as the final value and for the number of periods, we entered the number of years between 2014 and 2018, by subtracting the ending year from the starting year (2018 - 2014 = 4).

The calculator gave us the following result: Market Size 2014 = $2.64 trillion

Market Size 2015

We entered 5.69% as the CAGR, $2.64 trillion as the starting value and for the number of periods, we entered the number of years between 2014 and 2015, by subtracting the ending year from the starting year (2015 - 2014 = 1).

The calculator gave us the following result: Market Size 2015 = $2.79 trillion

Market Size 2016

We entered 5.69% as the CAGR, $2.79 trillion as the starting value and for the number of periods, we entered the number of years between 2015 and 2016, by subtracting the ending year from the starting year (2016 - 2015 = 1).

The calculator gave us the following result: Market Size 2016 = $2.95 trillion

Market Size 2017

We entered 5.69% as the CAGR, $2.95 trillion as the starting value and for the number of periods, we entered the number of years between 2016 and 2017, by subtracting the ending year from the starting year (2017 - 2016 = 1).

The calculator gave us the following result: Market Size 2017 = $3.12 trillion
Part
02
of five
Part
02

Household Cleaning Products Market: China

As indicated within the enclosed spreadsheet, the current market size of the consumer household cleaning products industry in China is $2.052 billion.

Statista

Daxue Consulting

Research Strategy

Please note, an extensive review of credible media sources, industry reports and market research databases identified two separate sources that detailed the market size of the consumer household cleaning products industry in China. However, the information provided by these two sources were significantly different.

In order to corroborate at least one of these sources, further research was conducted to identify a third source of market size information, however all other reliable sources for this data appeared to be limited and/or behind a paywall.

Ultimately, the decision was made to use the Statista estimate for market size of the consumer household cleaning products industry in China. This is because Statista is a highly credible global researcher, and their estimate was more current (published in late 2019). In contrast, Daxue Consulting is a more regional organization, and provided more dated information. As such, the information included within the enclosed spreadsheet reflects the Statista data.
Part
03
of five
Part
03

Air-Care Market: China

In 2020, the estimated size of the consumer air care market in China is valued at $696.23 million. We have provided the details of our findings in this spreadsheet and the research brief below.

MARKET OVERVIEW

  • China dominates the consumer air care market in the Asia Pacific and is expected to maintain its dominance until 2023.
  • The aromatherapy market is continuously increasing due to the growing health consciousness of consumers. As such, the air care market is also expected to increase due to the interconnectivity between air care products such as air fresheners, candles, or aerosols, and the aromatherapy market.
  • Also, contributing to the growth of the air care market globally is the "increasing demand for air care, as well as rising consumer concern for indoor air quality."
  • By consumer products, the market is segmented into sprays/aerosols and air fresheners (electric, gel, candle, and others).

MARKET SIZE AND FORECAST

  • In 2020, the market size for the consumer air care market in China is estimated to be $696.23 million.
  • The market is expected to grow at a CAGR of 3.19% to reach $765.01 million in 2023.

CALCULATIONS

  • The consumer air care market in China is expected to reach $765.01 million by 2023 at a CAGR of 3.19% from 2017.
  • To obtain the market size for 2020, we have to triangulate the information by calculating backward.
  • The 2022 consumer air care market size in China = old market size, and the old market x CAGR + old market size = new market size
  • As such, the old market size = new market size / 1 + CAGR
  • The 2022 consumer air care market size in China = $765.01 million / (1 + 0.0319) = $765.01 million / 1.0319 = $741.36 million
  • Thus, the 2022 consumer air care market size in China = $741.36 million.
  • From the calculation above, we derived a relationship which states that the old market size = new market size / 1 + CAGR
  • Working backward, the 2021 consumer air care market size in China = $741.36 million / 1.0319 = $718.44 million.
  • Finally, the 2020 consumer air care market size in China = $718.44 million / 1.0319 = $696,23 million.

Thus, the 2020 consumer air care market size in China = $696.23 million.





Part
04
of five
Part
04

DIY Home Improvement Market: China

The DIY home improvement industry in China is currently valued at $157.7 billion and is projected to grow at a CAGR of 7.4% to reach $242 billion by 2025. We have populated the requested research details into the attached spreadsheet. Below are our key findings as well as the calculations we made to arrive at the current and future market size.

China DIY Home Improvement Industry Market Growth

  • According to ReportLinker, the DIY home improvement market "China exhibits the potential to grow at 7.4% over the next couple of years and add approximately US $84.3 Billion in terms of addressable opportunity."
  • The home improvement report from ReportLinker forecasts growth between 2020 and 2025, a period of six years.
  • We have used the available information to calculate the current and future market size values of the DIY home improvement market in China.

The Calculations:

  • For these calculations, we've applied the Compound Interest Formula to calculate the current market size and the Reverse CAGR Online Calculator to calculate the current market size. Here are the calculations:
  • The Compound Interest Formula is as follows: A = P(1+r)^n, where A = A = Accrued Amount (principal + interest), P = Principal Amount, I = Interest Amount r = Annual Nominal Interest Rate as a decimal = R/100, R = Annual Nominal Interest Rate in percent, and n = number of compounding periods per unit t; at the END of each period.
  • The main data we are looking for is P (the principal amount and current market size) and the only available information we have is the Interest = ($84.3 billion), r = 7.4%, as well as n = 6 years
  • Accrued Amount = Principal + Interest = P + $84.3 billion
  • Going back to the formula, A = P(1 + r)^n, so P + $84.3 billion = P(1 + 7.4/100)^6
P + $84.3 billion = P(1.074)^6
P + $84.3 billion = 1.53470776P
$84.3 billion = 1.53470776P - P
$84.3 billion = 0.53470776P
P = $84.3 billion/0.53470776
P = $157,656,212,000
  • So, P (the principal amount and current market size of the DIY home improvement industry in China) is approximately $157.7 billion.
  • Using the CAGR of 7.4%, the starting value of $157,656,212,000, and the time period of six years, we have calculated the projected 2025 DIY home improvement industry in China market size to be approximately $242 billion.
Part
05
of five
Part
05

Wellness Market: China

The current market size of the wellness industry in China is $1.16 trillion. The required information about the Chinese wellness industry is contained in the attached spreadsheet.

Wellness Market: China

China Wellness Market: Overview

Research Strategy

To identify the current market size of the wellness industry in China, we initiated our search by scouring through the public domain for pre-compiled market analysis on the Chinese wellness industry. Our search was fruitful as we identified a report by the Guangzhou International Applied Science and Technology Expo and a corroborative source by the Asian Wellness Expo on the forecasted size of the Chinese wellness industry. Although the report by the Asian Wellness Expo dated beyond the 24 months, it provided us with viable statistics about the Chinese Wellness industry and other related information.
Since the figure was posted in Yuan, we applied the XE currency converter to obtain the USD equivalent.

Triangulation

Converting the Chinese wellness industry market size from Yuan to United States dollars;
Moving on, we tried to determine the different segments of the Chinese wellness industry. Unfortunately, none of the pre-compiled resources identified provided a detailed segmentation of the Chinese wellness industry.

First, we searched through the public domain for any pre-compiled article, publication, or news report detailing the different segments that constitute the Chinese wellness industry. We looked at articles such as the Guangzhou International Applied Science and Technology Expo and a corroborative source by the Asian Wellness Expo, which provided us with the market size and other publications by Daxue Consulting and Well To Do Global. Although these reports provided factual information about the nature of the Chinese wellness market, they had no information about its segments.

Next, we attempted to find any regional report concerning the state of the wellness industry in the Asia-Pacific region. Through this strategy, we hoped to find a report that contained a market analysis of the region and also the different segments that constitute growth in the region's wellness industry. This step proved abortive as the identified reports had no detail concerning the market segments. A copy of the industry analysis by the Global Wellness Institute about the region was only accessible through email.

This led us to expand our scope to the global level. Here, we found several reports about the Global wellness industry, which confirmed China as a top-performing country in different aspects. Since China was a top-performing country on a global scale and also held a reasonable share of the global wellness industry market, we leveraged on the segmentation data provided by the Global Wellness Institute on the different segments of the wellness industry and likened them to the Chinese wellness industry. This was based on the assumption that if China were a top-performing country in the global wellness industry, then, the country would most likely share in all segments of the global wellness industry.
Sources
Sources