FOOD: China’s Growing Appetite

Here’s something to chew on. In 2005, the China Food Market was worth almost$158 billion. The top three categories—Dried Foods,

Chilled Foods, and Oils & Fats represented a 54.8% market share. Meanwhile, the savory snacks category has demonstrated great market potential. The segment is developing innovative products; and benefiting from cheap raw materials, premium prices and changing tastes.

Not surprisingly dairy food remains a hot topic. While the US currently leads as the top market, China’s CAGR (Compound Annual Growth Rate) for the period of 2003-2008 is anticipated to be roughly 3 times larger, at 9.3%. (Only Mexico’s CAGR—at 11%—is higher.)

More Information
www.datamonitor.com

Bits ‘N Bites Confectionery performed well between 1998-2003, gowing at an average annual rate of 7.9%. In 2003, the leading company in the market was Nestlé. The second-largest player was Mars, with Yi Li in third place.

The market for Bakery & Cereals increased between 1999-2004, growing at an average annual rate of 10.4%. The leading company in 2004 was Kraft Foods, while the second-largest player was Beijing Daoxiangcun Foodstuffs, with Mankattan Food in third place.

Frozen food in China grew between 1999-2004, increasing at an average annual rate of 11%. North-China Shuanghui (Shineway) Foods led the market in 2004, while Beijing Huadu Meat Products came in second, with Beijing Zhukang Food in third place.