Bbk china food report 20150828 preview

With Focus on Healthy Products

THE CHINESE FOOD MARKET Please insert a suitable picture in this size

OFFICIAL PROGRAM

PARTNER

THE CHINESE FOOD MARKET This report provides a comprehensive reference for Swiss companies wanting to expand and/or develop in the Chinese food market. It contains market insights on the rapidly changing food market, for the general Food & Beverage as well as the Healthy Food Market.

Date: Language: English Number of pages: 66 Author: Fiducia Management Consultants Other sectorial Reports: Are you interested in other Reports for other sectors and countries? Please find more Reports here: s-ge.com/reports

DISCLAIMER The information in this report were gathered and researched from sources believed to be reliable and are written in good faith. Switzerland Global Enterprise and its network partners cannot be held liable for data, which might not be complete, accurate or up-to-date; nor for data which are from internet pages/sources on which Switzerland Global Enterprise or its network partners do not have any influence. The information in this report do not have a legal or juridical character, unless specifically noted.

Contents

4.5.1.

Market Development ___________________ 29

4.5.2.

Main Players ________________________ 31

4.5.3.

Distribution Channels __________________ 32

4.5.4.

Opportunities for Swiss Companies _________ 32

Market Trends _______________________ 10

5.

HEALTH FOOD MARKET ________________ 34

3.2.

Market Potential for Swiss Products __________ 11

5.1.

Baby and Infant Food __________________ 34

4.

FOOD AND BEVERAGE MARKET _________12

5.1.1.

Market Development ___________________ 34

4.1.

Convenience Food _____________________ 12

5.1.2.

Main Players ________________________ 35

4.1.1.

Market Development ___________________ 12

5.1.3.

Distribution Channels __________________ 36

4.1.2.

Main Players ________________________ 14

5.1.4.

Opportunities for Swiss Companies _________ 36

4.1.3.

Distribution Channels __________________ 15

5.2.

Organic Food ________________________ 37

4.1.4.

Opportunities for Swiss Companies __________17

5.2.1.

Market Development ___________________ 37

4.2.

Dairy Products _______________________ 18

5.2.2.

Main Players ________________________ 39

4.2.1.

Market Development ___________________ 18

5.2.3.

Distribution Channels __________________ 41

4.2.2.

Main Players ________________________ 19

5.2.4.

Opportunities for Swiss Companies _________ 42

4.2.3.

Distribution Channels __________________ 20

5.3.

Dietary Supplements ___________________ 43

4.2.4.

Opportunities for Swiss Companies _________ 21

5.3.1.

Market Development ___________________ 43

4.3.

Soft Drinks __________________________ 21

5.3.2.

Main Players ________________________ 44

4.3.1.

Market Development ___________________ 21

5.3.3.

Distribution Channels __________________ 44

4.3.2.

Main Players ________________________ 23

5.3.4.

Opportunities for Swiss Companies _________ 45

4.3.3.

Distribution Channels __________________ 23

5.4.

Sports & Fitness ______________________ 46

4.3.4.

Opportunities for Swiss Companies _________ 24

5.4.1.

Market Development ___________________ 46

4.4.

Alcoholic Beverages ____________________ 25

5.4.2.

Main Players ________________________ 47

4.4.1.

Market Development ___________________ 25

5.4.3.

Distribution Channels __________________ 47

4.4.2.

Main Players ________________________ 26

5.4.4.

Opportunities for Swiss Companies _________ 48

4.4.3.

Distribution Channels __________________ 27

6.

FAIRS AND ASSOCIATIONS _____________ 49

4.4.4.

Opportunities for Swiss Companies _________ 28

6.1.

Food Fairs __________________________ 49

4.5.

HoReCa (Hotel, Restaurant, cafĂŠ) __________ 29

6.2.

Associations __________________________51

1.

FOREWORD____________________________ 7

2.

EXECUTIVE SUMMARY __________________8

3.

MARKET OVERVIEW ____________________9

3.1.

7.

REGULATORY ENVIRONMENT ___________ 52

9.3.3.

Success story – SwissTaste _______________ 59

7.1.

Authorities __________________________ 52

9.3.4.

Suggestions for market entrants – SwissTaste __ 59

7.2.

Food Safety _________________________ 52

7.2.1.

Regulation Specific to Healthy and Organic Food 53

10.

EXPORT CHECKLIST ___________________ 60

7.2.2.

Regulation Specific to Genetically Modified

11.

APPENDIX ____________________________ 62

Organism ___________________________ 53

11.1.

Cross-border e-commerce of Bonded Warehouses 62

7.3.

Labeling Requirements _________________ 53

11.2.

Cross-border e-commerce in Bonded Logistics Parks

7.3.1.

Mandatory Labelling Items of Pre-packaged Food 53

7.3.2.

Requirements Specific to Nutritional Labelling _ 54

11.3.

Potential importing partners for China _______ 63

7.3.3.

Requirements Specific to Baby Food Labelling __ 54

11.4.

Local taxation and levies on alcoholic beverages in

7.3.4.

Requirements Specific to Organic Labelling ____ 54

8.

SINO- SWISS FTA ______________________ 55

8.1.

Import Procedures ____________________ 55

8.2.

Import Duties ________________________ 56

9.

SWISS COMPANIES IN CHINA____________57

9.1.

CHEERS Wines ______________________ 57

9.1.1.

About CHEERS Wines __________________ 57

9.1.2.

Road to success – CHEERS Wines __________ 57

9.1.3.

Success story – CHEERS Wines ____________ 57

9.1.4.

Suggestions for market entrants – CHEERS Wines57

9.2.

Emmi _____________________________ 58

9.2.1.

About Emmi _________________________ 58

9.2.2.

Road to success – Emmi _________________ 58

9.2.3.

Success story – Emmi __________________ 58

9.2.4.

Suggestions for market entrants – Emmi _____ 58

9.3.

SwissTaste (Beijing)____________________ 59

9.3.1.

About SwissTaste _____________________ 59

9.3.2.

Road to success – SwissTaste _____________ 59

THE CHINESE FOOD MARKET

4

and Free Trade Zones __________________ 62

China _____________________________ 64 11.5.

Reference ___________________________ 65

List of figures

Figure 1. 1: Geographic distribution of disposable income of urban households .............................................................................10 Figure 4.1.1. 1: Convenience food market development in China 2009 – 2019E (in RMB bn) ....................................................... 12 Figure 4.1.1. 2: Impulse and indulgence product market development in China 2009 – 2019E (in RMB bn)............................... 13 Figure 4.1.3. 1: Convenience food distribution channel development in China 2012 – 2014 (in %) ............................................... 15 Figure 4.2.1. 1: Dairy products market development in China 2009 – 2019E (in RMB bn) ...........................................................18 Figure 4.2.3. 1: Dairy products distribution channel development in China 2012 – 2014 (in %) .................................................. 20 Figure 4.3.1. 1: Soft drinks market development in China 2009 -2019E (in RMB bn) – Off-trade ............................................... 22 Figure 4.3.3. 1: Soft drinks distribution channel development in China 2012 – 2014 (in %) ......................................................... 23 Figure 4.4.1. 1: Alcoholic beverages market development in China 2009 - 2019E (in RMB bn).................................................... 25 Figure 4.4.3. 1: Alcoholic beverages distribution channel development in China 2012 – 2014 (in %) .......................................... 27 Figure 4.5.1. 1: Consumer foodservice sales by location 2009 - 2019E (in RMB bn)...................................................................... 29 Figure 4.5.1. 2: Consumer expenditure on hotels and catering by income 2009 – 2019E (in RMB bn) ....................................... 30 Figure 4.5.1. 3: Hotel price platform - retail value breakdown 2011 – 2013 (in %) ........................................................................ 30 Figure 5.1.1. 1: Baby and infant food market development in China 2009 – 2019E (in RMB bn) ................................................. 34 Es konnten keine Einträge für ein Abbildungsverzeichnis gefunden werden.

Figure 5.1.3. 1: Baby and infant food distribution channel development in China 2012 - 2014 (in %) .......................................... 36 Figure 5.2.1. 1: Organic packaged food market development in China 2009 – 2019E (in RMB bn) ............................................. 38 Figure 5.2.1. 2: Development of number of organic certifications in China 2004 - 2013 ............................................................... 38 Figure 5.2.3. 1: Organic packaged food distribution channel development in China 2012-2014 (in %) ........................................ 42 Figure 5.3.1. 1: Dietary supplement market development in China 2009 – 2019E (in RMB bn)................................................... 43 Figure 5.3.3. 1: Dietary supplements distribution channel development in China 2012-2014 (in %) ........................................... 44 Figure 5.4.1. 1: Sports nutrition market development in China 2009 – 2019E (in RMB bn) ......................................................... 46 Figure 5.4.3. 1: Sport & fitness distribution channel development in China 2012-2014 (in %) ..................................................... 47 Table 4.1.2. 1: Main players in the convenience food industry in China (excluding dairy players) ................................................. 14 Table 4.1.2. 2: Main foreign players in the impulse and indulgence market in China (excluding dairy players) ........................... 15

Table 4.1.3. 1: Largest food retail stores in China in 2014 ................................................................................................................. 16 Table 4.2.2. 1: Largest domestic players in the dairy industry in China ........................................................................................... 19 Table 4.2.2. 2: Largest foreign players in the dairy industry in China ............................................................................................. 20 Table 4.3.2. 1: Largest players in the soft drinks industry in China ................................................................................................. 23 Table 4.4.2. 1: Most popular alcoholic brands in China (according to volume) .............................................................................. 26 Table 4.4.2. 2: Most popular imported wines in China .................................................................................................................... 27 Table 4.5.2. 1: International enterprises in the hotel sector .............................................................................................................. 31 Table 4.5.2. 2: International enterprises in the chained consumer foodservice sector ................................................................... 31 Table 4.5.3. 1: Consumer foodservice by independent vs chained: units/outlets 2013 .................................................................. 32 Table 5.1.2. 1: Largest players in the baby and infant food industry in China ................................................................................. 35 Table 5.2.2. 1: Largest domestic players within the organic food industry in China ....................................................................... 40 Table 5.2.2. 2: Largest foreign players within the organic food industry in China ......................................................................... 40 Table 5.2.2. 3: Local producers of organic food products in China................................................................................................... 41 Table 5.3.2. 1: Largest players in the dietary supplements industry in China ................................................................................. 44 Table 5.4.2. 1: Largest players in the sports and fitness nutrition industry in China ..................................................................... 47 Table 8.2. 1: Chinese customs duties on major food products (goods exported from Switzerland to China)................................ 56 Table 11.3. 1: Local distributors and importers ................................................................................................................................. 63

THE CHINESE FOOD MARKET

6

1. Foreword Dear Reader, Thanks to its speedy growth in recent years, China has become the world’s largest consumer market for food and beverage (F&B). At the same time, the demand for imported food has also seen a remarkable development. As consumers increasingly turn towards higher-valued products, the Chinese food market offers excellent opportunities for foreign foodstuffs companies.

Switzerland and Swiss products enjoy an excellent reputation in China as the Swiss brand stands for a high standard of quality and safety that is highly valued by a quickly growing number of middle class consumers.

Whereas China's affluent urban consumers appear to be the most inclined to pay premium prices for healthy food, even lower-income Chinese preferences are shifting. 84% of Chinese consumers are concerned about food safety according to a recent research. This is reflected in soaring demand for products suc h as imported fresh milk, and increasing awareness for healthy foreign foodstuffs. As a consequence, China's organic food market grew more than 10-fold in the past six years. While nutritious and safe food is the dominant theme today in China's F&B sector, other noteworthy trends include convenience food, online shopping, and lifestyle products.

This “Food Report with focus on healthy products” offers an overview of possibilities, be it for established Swiss brands or new niche products. For a successful entry into the market you will need to partner with local distributors. The Swiss Business Hub (SBH) is familiar with the market and has a well-established network in China. Are you looking East? Then let us discuss and evaluate the chances of your company’s success in the region.

Alain Graf Head of Swiss Business Hub China

Wolfgang Schanzenbach Regional Director APAC

Swiss Embassy in the People’s Republic of China Sanlitun Dongwujie 3 100600 Beijing

Switzerland Global Enterprise Stampfenbachstrasse 85 8006 Zurich

alain.graf@eda.admin.ch Phone +86 10 8532 7532 www.eda.admin.ch/beijing s-ge.com

wschanzenbach@s-ge.com

THE CHINESE FOOD MARKET

7

2. Executive Summary China has experienced remarkable economic growth in the last two to three decades, which has resulted in a steady increase in consumer’s income. China now ranks amongst the top 80 countries in the world in terms of GDP per capita. By 2016, 340 million Chinese are expected to belong to the middle class, more than the population of Western Europe, thus creating a huge market for all sorts of food and beverage products. Coupled with increasing urbanisation and internationalisation, this rising middle class will have a great impact on the changing food culture in China, mainly in terms of increased consumer spending, shift in dietary patterns and raised health awareness, and sophistication regarding food ingredients.

Seeing the vast opportunities in the China food market, this report aims to provide an overview of the current situation, as well as future trends for certain food categories, with a special focus on exploring potential opportunities for Swiss enterprises and entrepreneurs.

This report covers the following nine sectors of the China food market: x

x

Food & Beverage Market x Convenience Food x Dairy Products x Soft Drinks x Alcoholic Beverages x HoReCa Healthy Food Market x Baby & Infant Food x Organic Food x Dietary Supplements x Sports & Fitness

Each sector is structured according to the below four segments: x x x x

Market development Main players Distribution channels Opportunities for Swiss companies

The content of this report will provide Swiss companies with an overview of the Chinese food market and a basis to formulate a suitable entry and/or expansion strategy for, not only China, but the greater Asia-Pacific market.

THE CHINESE FOOD MARKET

8