It’s nothing new that Chinese consumers are opting for food and beverages that are better for them. In 2013, after a decade and a half of mouth-watering growth from its Oreo cookies, Mondelez discovered that wealthy urban consumers were turning to healthier alternatives. Likewise, earlier this year Nestle announced it was revamping its food and beverage business in China due to the shift towards nutritious items.
Whilst China’s affluent urban consumers have been the most prepared to pay premiums for healthy food, even lower-income Chinese preferences are changing.
Chinese munch their way through half of the world’s instant noodles – more than 40 billion packets a year. But appetites appear to be waning, with sales dropping by billions of packets last year. The traditional strong-hold for noodle companies – low income earners – are increasingly forgoing cheap food for higher-priced, more nourishing options.
Food safety is another factor concerning 84% of Chinese consumers according to Mintel research. That’s reflected in soaring growth for products like imported fresh milk, and increasing awareness for healthy foreign products such as cranberries, avocados and olive oil. Similarly, China’s organic food market grew 12-fold in the past six years.
While nutritious, safe food is one of the big shifts in China’s food and beverage sector, other trends include convenience food, online shopping, sharing, product and packing innovation, food origin/provenance and the ever-present localisation. China Skinny can work with you to ensure that your product fits into the mix. More info here. Go to Page 2 to see this week’s China news and highlights.