The phenomena of concentration and cavitation are identified and analyzed by studying the vanishing pressure limit of solutions to the 3x3 isentropic compressible Euler equations for generalized Chaplygin gas (GCG) with a small parameter. It is rigorously proved that, any Riemann solution containing two shocks and possibly one-contact-discontinuity of the GCG equations converges to a delta-shock solution of the same system as the parameter decreases to a certain critical value. Moreover, as the parameter goes to zero, that is, the pressure vanishes, the limiting solution is just the delta-shock solution of the pressureless gas dynamics (PGD) model, and the intermediate density between the two shocks tends to a weighted delta-measure that forms the delta shock wave; any Riemann solution containing two rarefaction waves and possibly one contact-discontinuity tends to a two-contact-discontinuity solution of the PGD model, and the nonvacuum intermediate state in between tends to a vacuum state. Finally, some numerical results are presented to exhibit the processes of concentration and cavitation as the pressure decreases.