Food is a
national obsession and an essential part of Chinese culture and social
life. Major life events revolve around food and while the average Chinese
is price conscious and conservative, little expense is spared for food
related gifts, entertainment and events.
average Chinese spends more than 40% of disposable income on food and
beverages. It is forecast that the Chinese food and beverage market in
2005 will be valued at approximately A$350 billion and will increase at a
rate of more than 10% per year for the next decade. The affluence of the Chinese
consumer is increasing rapidly as millions of Chinese join the middle class
each year. Even the poor will spend the equivalent of months or years of
salary to try food that is considered new, unique, exotic or have
significant health benefits.
consumption trend is for more meat, aquatic products, dairy
products, convenience read-to-eat/cook meals and fresh and health foods.
The Chinese consumers are becoming more health conscious and foods that have
health properties for the young and old to help resist disease development,
improve mental and physical strength, sex drive, endurance, intelligence,
memory and physical appearance or reduce weight, will have a ready market.
food is becoming very popular in China – particularly fast foods and
beverages such as McDonald’s burgers, Kentucky Fried Chicken, Starbucks coffee
and PizzaHut. Many of the international food brands such as Coca Cola,
Budweiser, Nestles, Heinz, Kraft and Peters are becoming household names.
A majority of the Chinese have come to accept imported foods as being
superior in quality and are more willing to pay a higher price for them.
food distribution in China is still a major problem due to poor
transportation, lack of a cold chain, fragmented marketing networks,
logistics, under developed agricultural production and postharvest management
systems, and regionalism. Totally foreign-owned manufacturing and
distribution is now possible and the market for foreign food products is
likely to expand rapidly over the next few years due to surging consumer
demand for greater quality and variety; improving distribution
infrastructure, food standards and regulatory environment, market access
liberalization, conformity to WTO agreements, and falling duties and taxes.
is undergoing significant changes from wet markets and corner shops to that
of hypermarkets, supermarkets, departmental stores and convenience stores.
Foreign retail chain giants such as Wal-Mart, Carrefour and Metro are now
well established in China. Food consumption through hotels, restaurants and
institutional food outlets is booming. This rapid growth is driven by the
emergence of large middle class 2-income families and the Chinese
tradition of hospitality and dinning out.
presentation, packaging design and size, quality, varieties, shelf life,
safety and reliability are now important ingredients for marketing success.
The Chinese consumers are becoming more style conscious and sensitive to
evolving trends and fads and will spend money to experiment new foods.
tremendous opportunities in the area of processed food as only a small
proportion of the food production in China is processed. China currently
processes about 25% of its food production compared to 90% in developed
countries such as Australia and US.
The Chinese food market is immense but complicated as
food preferences and usages are constantly evolving and can vary
significantly from region to region, culture to culture, between urban and
rural populations, age groups, and affordability.
Import and export of raw food commodities, quality food ingredients and new flavours for processing and manufacturing
Import of processing, packaging and food testing equipment
Import of western and organic foods, nutritional supplements
Import of dairy products, live and frozen seafood, game meats, wild animal
and plant foods, wine and juices, nuts, healthy snacks, and fresh or
dried fruit and vegetables
Provision of food processing and manufacturing design and technology
New food product recipes and formulations
Food processing, manufacture and catering training for large and medium
operations and for township/village level
Development of cold chains, distribution systems and logistics
Establishment of retail chains and franchised food services
Develop and Capture Business Opportunities in China
How AgrifoodAsia Can Help You
In view of the vast business potential in China, businesses
worldwide are actively searching for ways and means to access China’s vast
market. However, while
tremendous opportunities exist in the huge Chinese
turning those opportunities into reality is not easy.
Unless you have a product or
service that sells itself,
having a quality product or
service at a competitive price does not necessary translate into instant
success in China. The average
foreign organization or company would still be required to spend
considerable financial and
human resources and years of time to build and
acquire the China knowledge, business
structures, networks and skills necessary for sustainable success in China.
can minimize your chance of disappointment and lost opportunities, and save
you time, money and effort by providing you with our extensive China
business structures, mechanisms, networks, expertise and experience, and
equip you with the skills necessary for you to DO and MAKE business HAPPEN
in China through our training program.
browse our Partner and Business Centres for more information on how we can
work with you to make business happen for you.