China's beverage industry took on a positive facade last year with a year-on-year increase rate of 24.8% up to 42.2 million tons for total output capacity, seven percentage points higher than during the 10th Five Year Plan period, said a spokesperson from the Department of Economic Operations under the National Development and Reform Commission (NDRC) this Wednesday.

Three industry milestones were reached respectively in the year of 1997, 2002 and 2005 with the production volume breaking through 10 million, 20 million and 30 million tons accordingly. During 2001 to 2005, the annual growth rate on average stood at 17.8% on output quantity and 18.3% on output value respectively.

However, unbalanced development between areas, unreasonable product structure, weak concentration on production scale and dependence on imported equipment are named among the major issues facing China's beverage industry.

Throughout the 11th Five Year Plan period, much more attempt will be geared into developing pulps drinks, tea drinks and plant albumen beverages; carbonated beverages' supply will be adjusted in proportion with functional drinks.

The establishment of conglomerate companies will also be fostered by means of mergers and acquisition, reshuffles and funds collecting. Yangtze River Delta region, Pearl River Delta region and some large cities are inclined to be ideal locations for production plants.