Industries with the Biggest Increase in Profit Margin in China in 2025

1. Bus Transportation in China

Percentage Point Increase for 2025: 2.4pp

Revenue for the Bus Transportation industry is expected to fall at an annualized 3.0% over the five years through 2023. This trend includes anticipated revenue rise of 34.9% in the current year, to $20.2 billion. The COVID-19 pandemic resulted in significant decreases in 2020 and 2022. The industry is expected to include 3,753 bus transportation establishments in 2023, employing approximately 930,410 people. However, industry enterprises are governed by local governments, which standardizes the industry's development. The industry is featured as public interest. Industry enterprises generally operates in losses and rely on government subsidies.

As one of the main urban public transportation... Learn More

2. International Express Service in China

Percentage Point Increase for 2025: 0.5pp

China's International Express Service industry has experienced substantial growth in the past decade, mainly due to improving economic conditions, rising residential income levels and better infrastructure. Industry performance is also closely related to China's cross-border ecommerce market development. Industry revenue is expected to grow at an annualized 15.6% over the five years through 2023, to $20.4 billion. This includes 16.6% growth in 2023.

The cross-border ecommerce market has developed rapidly, benefiting from more Internet users and government support. As of 2022, the number of Internet users in China has reached 1.1 billion and the Internet penetration rate across the total population... Learn More

3. Paint Manufacturing in China

Percentage Point Increase for 2025: 0.5pp

Revenue for the Paint Manufacturing industry in China is expected to rise at a CAGR of 4.4% over the five years through 2023, due to strong demand from downstream industries. In 2023, industry revenue is set to grow by 4.8% to reach $98.1 billion. Despite strengthened macro-controls on China's real estate market, demand has increased from firms that construct indemnificatory and low-rent houses, and undertake old house renovations.

Exports are expected to rise at a CAGR of 2.9% over the five years through 2023, and imports are expected to increase at a CAGR of 11.0% over the same period. Imports have... Learn More

4. IT Services in China

Percentage Point Increase for 2025: 0.2pp

The IT Services industry in China has performed well over the past five years, due to the application of new technologies, like cloud computing, big data, AI and the Internet of Things. The growth in IT investment and of China's information sector has boosted industry demand. Industry revenue is expected to grow at an annualized 7.2% over the five years through 2023, to total $285.5 billion. This trend includes anticipated growth of 6.5% in the current year.

Industry revenue growth slowed down to 1.8% in 2022, mainly because the aggravated COVID-19 epidemic in the year has led to delays in project... Learn More

5. Solar Power Generation in China

Percentage Point Increase for 2025: 0.2pp

Under the background of global energy transforming from traditional energy to renewable energy, the Government in China has been issuing industry assistance policies to promote fast development of solar power generation. The Solar Power Generation industry in China has grown significantly over the past five years. Industry revenue is expected to increase at an annualized 17.4% over the five years through 2023, to $32.0 billion. This trend includes anticipated revenue growth of 17.9% in 2023. The installed capacity of solar power generation has been increasing rapidly, with share of solar power installed capacity accounting for total power generation installed capacity... Learn More

6. Securities Brokerage and Transaction Services in China

Percentage Point Increase for 2025: 0.2pp

Over the five years through 2023, revenue for the Securities Brokerage and Transaction Services industry has been increasing at an annualized 16.4%, to $31.2 billion. This includes expected industry revenue increase of 12.3% in the current year. Due to uncertainty brought about by the COVID-19, the international political geopolitical crisis and the fluctuation of the international financial market, the industry experienced significant fluctuations over the last five years. The competition in the industry is very fierce. The brokerage business of securities companies is seriously homogenized, and the commission price war leads to more fierce competition.

In 2016 and 2017, industry revenue... Learn More

7. Cooking Oil Production in China

Percentage Point Increase for 2025: 0.2pp

The Cooking Oil Production industry in China has grown its revenue rapidly over the past five years, mainly due to increased industry capacity and high domestic demand. As the country has changed its economic focus from exports to domestic demand and increased living standards, cooking oil consumption in China is expected to maintain a strong growth trend over the period. ACMR-IBISWorld expects industry revenue to total $346.4 billion in 2023, up 4.9% for the year. Over the five years through 2023, revenue has grown at an annualized 5.8%. The growing costs of labor and purchases have reduced industry profitability to... Learn More

8. Sporting Goods Wholesaling in China

Percentage Point Increase for 2025: 0.1pp

Revenue for the Sporting Goods Wholesaling industry in China is expected to increase at an annualized 3.1% over the five years through 2023 to reach an estimated $57.4 billion. This trend includes an expected increase of 6.4% in 2023. The main factors driving revenue growth have been rising domestic demand, large sporting events hosted by China, increasing health consciousness and China's active involvement in international trade in the World Trade Organization (WTO) framework. Profitability for the average sporting goods wholesaler has grown slightly over the five years through 2023 to account for an estimated 4.4%.

Many large sporting goods manufacturers have... Learn More

9. Oil Wholesale in China

Percentage Point Increase for 2025: 0.1pp

Revenue for the Oil Wholesale industry in China is expected to increase at an annualized 9.5% over the five years through 2023, to $1.1 trillion. Industry revenue is anticipated to rise by 14.7% in the current year due to increasing international oil prices. Imports have satisfied an increasing proportion of domestic demand over the past five years, indicating increasing reliance on foreign oil. Industry imports are estimated to total $45.2 billion in 2023. Profit was estimated 3.2% of total revenue.

The Commerce department will continue to issue qualification certificates for crude oil and refined oil wholesalers in China. According to the... Learn More

10. Clock and Watch Manufacturing in China

Percentage Point Increase for 2025: 0.1pp

Revenue for the Clock and Watch Manufacturing industry in China is expected to rise at an annualized 1.9% over the five years through 2023, to $14.3 billion. This includes an anticipated increase 1.7% in the current year. China's large domestic market and foreign demand have supported the industry's development. As the industry is highly export-oriented, most operators are based in coastal areas, such as Guangdong, Fujian, Zhejiang, Shandong provinces. Export revenue is expected to account for 36.7% of total industry revenue in 2023. However, overseas demand has declined gradually in recent years. This decline, compounded with lower domestic demand in... Learn More