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China's Food Industry Development Trend

During the Shanghai China International Food Expo 2015 (13-15 Nov), Bright Food one of the largest Chinese food companies in collaboration with Rabobank, issued the China Food Industry Development Trend Report. The report indicates the following tendencies in China’s food industry that deserve overseas investors’ attention:

  • With the implementation of China’s two-child policy (see CL Food News on 3 Nov 2015), the increased population will be the main impetus for food consumption growth, especially dairy products and health food.

  • High end dairy products such as premium infant formula will be more favorable and the Chinese consumers’ preference for imported infant formula will continue for years.

  • Beverages more beneficial to health will be one of the hot foods due to an aging population and Chinese consumers’ growing desire for quality foods and life.

  • Enterprises of fast moving consumer goods including food and beverages companies are making new marketing strategies and re-allocating resources to explore new opportunities in small and medium-sized cities.

  • Online sales channel are getting more and more attention from food companies. Fresh foods e-commerce and cold-chain logistics could be the blue sea which will attract massive investments. According to the report, the sales volume of fresh food only accounts for 1% of the total on-line sales so there is still large space for growth.

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