Expanding Market

While world markets stagnate or reduce their imports, demand in China for imported meat, seafood, fresh, frozen and processed food, wines, coffee, confectionery, dairy products and much more, continues to expand.

The China National Food Industry Association (CNFIA) estimates that China will become the world’s largest market for imported food by 2018. According to the information of China Statistics Bureau, the total retail sales of goods up to 5,871.1 billion in the first half of 2009, increased 15% year-on-year, therein, foodstuff’s growth rate is 12.6%. Furthermore, as of August 2009, China´s Consumer´s Price Index rose 3.9%.

Reasons for a Continued Growth

The reasons for this continued growth are mainly three:
Firstly, the continued per capita GDP rise of a growing middle class. The middle class grows every year by more than 15%, and therefore more consumers are exploring the growing range of imported products available in the market.

Second, the optimization of China´s economic structure, and the improvement of people’s life standard, has improved the consumption ability of the general Chinese consumer.

Third, concern for quality has grown rapidly especially as a result of several serious health incidents caused by cases such as the contaminated milk scandal of 2008.

All these factors have resulted in more Chinese consumers opting for imported foods.

Crisis and Challenges

Since the global financial crisis, the China food market also faced difficulties and challenges. Many multinational food companies saw their revenue decline in local areas.

However if we compare the China food market with the global food market, it seems China food market did not suffer a great loss, but saw sustained growth during the downturn, and more and more food industry giants, such as Unilever, Kraft Food, and PepsiCo, have continued with their strategic expansion in the emerging China market.

The Right Questions

• So, what has made global food companies invest heavily in China?
• How can they take advantages of opportunities during this period of economic recovery?
• What are the latest achievements by industry-leading companies in R&D, manufacturing, and supply chain management?
• Why a lot of international companies failed after they enter China market?
• Why many international famous brands change their products image when they launch in China local market?

We tackle and solve all these challenges and questions for our clients.