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Competitive Trade Analysis – Processed food trends in China

February 2019

Report content summary

This report looks to highlight the major sectors in China and attempts to identify the best opportunities for Canadian exports.

Specifically, the data analysis that follows focuses on the top 10 Chinese imports by major aggregate sectors of which Canada is a supplier. It identifies the gap between China's imports from the world and the proportion provided by Canada.

China market summary

China was the third-largest importer of processed foods (Can$64.9 billion) in the world after the European Union (Can$462.3 billion) and the United States (Can$117.2 billion) in 2017. Canada's share was 3.7% or Can$2.4 billion. Canada had a trade surplus of Can$1.8 billion with China in processed foods in 2017.

China's processed food imports from the world have been increasing at a faster rate (10.2% compound annual growth rate [CAGR]) than China's processed food imports from Canada (5.0% CAGR) from 2013 to 2017. This has resulted in a supply gap not only overall, but also among most of the top 10 Chinese import commodities from the world.

In 2017, China exported Can$48.2 billion in processed foods to the world. This was a decrease of 6.8% from 2016 but still made China the third-largest exporter in the world after the European Union (Can$530.1 billion) and the United States (Can$92.9 billion).

China was a net importer of processed foods (Can$16.7 billion) in 2017 with imports valued at Can$64.9 billion and exports valued at Can$48.2 billion.

Trade overview

China is a net importer of processed foods. In 2017, China's processed food trade deficit was Can$16.7 billion, with imports valued at Can$64.9 billion and exports at Can$48.2 billion. China imported a wide variety of processed foods, with its top imports being food preparations for infant use (HS190110), frozen boneless beef (HS020230) and wine of fresh grapes (HS220421). The top three supplying countries are the United States, New Zealand and Indonesia. Canada is ranked 12th among the 187 supplying countries to China.

China's top 10 suppliers of processed foods, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 43,998.6 47,742.0 55,047.9 60,276.0 64,942.3 10.2
United States 6,964.3 7,580.8 7,725.0 7,077.9 6,282.4 −2.5
New Zealand 4,761.5 6,072.7 4,077.1 4,388.0 6,051.0 6.2
Indonesia 3,003.2 3,613.1 4,498.3 4,264.5 5,093.8 14.1
Australia 2,894.7 3,207.8 3,803.0 3,685.3 4,550.1 12.0
France 2,516.1 2,515.4 2,961.4 3,443.4 4,208.7 13.7
Brazil 1,184.1 1,267.8 1,718.1 3,204.9 3,010.1 26.3
Vietnam 934.1 1,027.1 1,569.2 2,269.4 2,914.3 32.9
Thailand 1,682.5 2,147.4 2,728.3 2,635.9 2,828.6 13.9
Malaysia 3,828.5 3,510.9 2,954.7 2,643.3 2,757.6 −7.9
Germany 1,372.7 1,434.9 2,275.2 2,995.4 2,715.5 18.6
Canada (12th) 1,996.3 1,426.2 1,552.0 2,142.6 2,421.9 5.0

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China recorded imports of Can$64.9 billion of processed foods from the world in 2017, and Canada's share was 3.7% or Can$2.4 billion. China exported Can$0.6 billion of processed foods to Canada in 2017. Canada had a trade surplus of Can$1.8 billion with China in processed foods in 2017.

China's top 10 suppliers of processed foods, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
United States 15.8 15.9 14.0 11.7 9.7 −6.2
New Zealand 10.8 12.7 7.4 7.3 9.3 −1.5
Indonesia 6.8 7.6 8.2 7.1 7.8 1.0
Australia 6.6 6.7 6.9 6.1 7.0 0.4
France 5.7 5.3 5.4 5.7 6.5 0.8
Brazil 2.7 2.7 3.1 5.3 4.6 1.9
Vietnam 2.1 2.2 2.9 3.8 4.5 2.4
Thailand 3.8 4.5 5.0 4.4 4.4 0.5
Malaysia 8.7 7.4 5.4 4.4 4.2 −4.5
Germany 3.1 3.0 4.1 5.0 4.2 1.1
Canada (12th) 4.5 3.0 2.8 3.6 3.7 −0.8

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Canada has a large supply gap with China, despite being its 12th-largest supplier of processed food. China has minimal domestic production due to limited water supply and large population, and thus offers export opportunities just to accommodate demand. China has a diverse supplier list for processed food, totalling 187 countries in 2017, but the top five players represent a combined 40.3% of the import market, showing a relatively concentrated supply environment. China's processed food imports from the world have been increasing at a faster rate (10.2% CAGR) than China's imports from Canada (5.0% CAGR) from 2013 to 2017.

Supply gap of processed foods, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 43,999.6 47,742.0 55,047.9 60,276.0 64,942.3 10.2
China's imports from Canada 1,996.3 1,426.2 1,552.0 2,143.0 2,422.6 5.0
Supply gap 42,002.4 46,315.8 53,495.9 58,133.4 62,520.4 10.5

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

Food preparations for infant use was China's top commodity in 2017, with a value of Can$5.3 billion or 8.1% of overall processed food imports. It recorded the highest CAGR of 36.3% among the imported processed foods from 2013 to 2017, followed by frozen boneless beef (34.5% CAGR), wine of fresh grapes (23.5%) and frozen bone-in pork (23.4%) over the same period.

China's top 10 processed food imports from the world, Can$ millions
Harmonized System Code Commodity 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Total processed food imports 43,999.6 47,742.0 55,047.9 60,276.0 64,942.3 10.2
190110 Food preparations for infant use 1,526.5 1,732.1 3,245.7 4,071.6 5,265.0 36.3
020230 Frozen boneless beef 1,070.6 1,109.9 2,571.9 2,913.7 3,506.5 34.5
220421 Wine of fresh grapes 1,422.1 1,506.8 2,411.1 2,917.9 3,306.4 23.5
230120 Flours, meals and pellets of fish or crustaceans, molluscs 1,725.4 1,722.6 2,312.2 2,127.5 2,889.9 13.8
020649 Frozen offal of swine (excluding livers) 1,539.6 1,545.6 1,602.2 3,228.4 2,737.8 15.5
410150 Raw hides and skins of bovine 2,809.9 3,077.8 3,163.5 2,304.4 2,216.8 −5.8
020329 Frozen bone-in pork (excluding carcases, half-carcases, hams, shoulders and cuts) 853.8 836.1 1,285.2 2,922.0 1,980.0 23.4
040221 Powdered milk 2,705.2 3,636.5 1,199.1 1,420.1 1,971.6 −7.6
100630 Semi-milled or wholly-milled rice 871.9 1,140.8 1,502.5 1,770.3 1,904.8 21.6
220820 Spirits obtained by distilling grape wine 865.7 765.5 801.9 861.0 1,126.4 6.8

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

Top 10 processed food imports

1. Food preparation for infant use (HS190110)

China's top 10 suppliers of food preparation for infant use, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 1,526.5 1,732.1 3,245.7 4,071.6 5,265.0 36.3
Netherlands 338.5 462.1 1,044.8 1354.8 1,511.0 45.4
New Zealand 267.4 170.7 250.8 446.0 887.0 35.0
Ireland 133.6 307.0 524.4 749.4 848.7 58.8
Germany 25.1 67.3 389.8 445.8 551.6 116.4
France 217.4 179.2 169.3 177.3 522.8 24.5
Denmark 94.4 122.8 123.3 191.8 283.3 31.6
Australia 78.7 59.0 200.1 220.4 249.3 33.4
Switzerland 21.2 39.3 54.0 91.4 123.0 55.2
United States 20.1 29.7 98.3 91.1 94.5 47.2
South Korea 53.3 75.1 112.0 132.4 78.5 10.2

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China's top 10 suppliers of food preparation for infant use, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
Netherlands 22.2 26.7 32.2 33.3 28.7 6.5
New Zealand 17.5 9.9 7.7 11.0 16.8 −0.7
Ireland 8.8 17.7 16.2 18.4 16.1 7.4
Germany 1.6 3.9 12.0 10.9 10.5 8.8
France 14.2 10.3 5.2 4.4 9.9 −4.3
Denmark 6.2 7.1 3.8 4.7 5.4 −0.8
Australia 5.2 3.4 6.2 5.4 4.7 −0.4
Switzerland 1.4 2.3 1.7 2.2 2.3 0.9
United States 1.3 1.7 3.0 2.2 1.8 0.5
South Korea 3.5 4.3 3.5 3.3 1.5 −2.0

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of food preparation for infant use, Can$
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 1,526,465,215 1,732,134,541 3,245,734,050 4,071,578,989 5,265,023,607 36.3
China's imports from Canada 312 3,257 906,135 319,286 154,177 261.7
Supply gap 1,526,464,903 1,732,131,284 3,244,827,915 4,071,259,703 5,264,869,430 36.3

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

2. Frozen boneless beef (HS020230)

China's top 10 suppliers of frozen boneless beef, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 1,070.6 1,109.9 2,571.9 2,913.7 3,506.5 34.5
Brazil 0.0 0.0 382.8 1,018.5 1,131.2 N/C
Australia 588.1 535.8 777.1 559.0 687.5 4.0
Uruguay 211.6 233.5 519.0 552.1 646.4 32.2
Argentina 44.3 92.7 263.7 301.6 477.6 81.2
New Zealand 142.8 173.5 386.7 344.1 409.1 30.1
Canada 82.9 65.4 228.0 121.1 103.5 5.7
United States 0.0 0.0 0.0 0.0 23.3 N/C
Costa Rica 0.9 9.0 13.2 9.5 15.1 102.0
Chile 0.0 0.0 1.2 6.9 7.1 N/C
South Africa 0.0 0.0 0.0 0.0 5.2 N/C

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

China's top 10 suppliers of frozen boneless beef, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
Brazil 0.0 0.0 14.9 35.0 32.3 32.3
Australia 54.9 48.3 30.2 19.2 19.6 −35.3
Uruguay 19.8 21.0 20.2 18.9 18.4 −1.3
Argentina 4.1 8.3 10.3 10.3 13.6 9.5
New Zealand 13.3 15.6 15.0 11.8 11.7 −1.7
Canada 7.7 5.9 8.9 4.2 3.0 −4.8
United States 0.0 0.0 0.0 0.0 0.7 0.7
Costa Rica 0.1 0.8 0.5 0.3 0.4 0.3
Chile 0.0 0.0 0.0 0.2 0.2 0.2
South Africa 0.0 0.0 0.0 0.0 0.1 0.1

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of frozen boneless beef, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 1,070.6 1,109.9 2,571.9 2,913.7 3,506.5 34.5
China's imports from Canada 82.9 65.4 228.0 121.1 103.5 5.7
Supply gap 987.7 1044.5 2343.8 2792.6 3403.0 36.2

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

3. Wine of fresh grapes (HS220421)

China's top 10 suppliers of wine of fresh grapes, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 1,422.1 1,506.8 2,411.1 2,917.9 3,306.4 23.5
France 676.7 676.6 1,115.5 1,283.5 1,360.5 19.1
Australia 232.5 273.1 563.9 722.1 882.4 39.6
Chile 103.0 137.5 218.5 277.9 345.9 35.4
Spain 94.0 106.1 144.1 188.9 194.7 20.0
Italy 92.6 89.7 105.6 151.5 179.3 18.0
United States 75.9 71.9 65.7 69.7 97.8 6.5
New Zealand 20.4 26.7 23.9 27.9 37.5 16.5
South Africa 22.8 23.9 49.1 46.3 31.7 8.6
Portugal 18.3 15.7 20.5 25.2 28.8 12.0
Argentina 23.1 19.5 25.5 30.8 28.6 5.5
Canada (13th) 14.2 11.3 13.1 12.9 18.3 6.5

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China's top 10 suppliers of wine of fresh grapes, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
France 47.6 44.9 46.3 44.0 41.1 −6.4
Australia 16.3 18.1 23.4 24.7 26.7 10.3
Chile 7.2 9.1 9.1 9.5 10.5 3.2
Spain 6.6 7.0 6.0 6.5 5.9 −0.7
Italy 6.5 6.0 4.4 5.2 5.4 −1.1
United States 5.3 4.8 2.7 2.4 3.0 −2.4
New Zealand 1.4 1.8 1.0 1.0 1.1 −0.3
South Africa 1.6 1.6 2.0 1.6 1.0 −0.6
Portugal 1.3 1.0 0.8 0.9 0.9 −0.4
Argentina 1.6 1.3 1.1 1.1 0.9 −0.8
Canada (13th) 1.0 0.8 0.5 0.4 0.6 −0.4

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of wine of fresh grapes, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 1,422.1 1,506.8 2,411.1 2,917.9 3,306.4 23.5
China's imports from Canada 14.2 11.3 13.1 12.9 18.3 6.5
Supply gap 1,407.9 1,495.5 2,397.9 2,905.0 3,288.2 23.6

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

4. Flours, meals and pellets of fish or crustaceans, molluscs (HS230120)

China's top 10 flours, meals and pellets of fish or crustaceans, molluscs, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 1,725.4 1,722.6 2,312.2 2,127.5 2,889.9 13.8
Peru 818.7 851.3 1239.9 958.0 1,665.4 19.4
United States 215.8 194.0 224.0 242.0 208.3 −0.9
Vietnam 79.8 97.6 129.3 215.1 207.4 27.0
Chile 221.9 158.9 161.5 121.7 128.6 −12.7
Russia 102.0 93.7 141.9 133.9 121.6 4.5
Ecuador 74.9 39.4 59.0 101.9 102.6 8.2
Mauritania 0.0 0.0 0.0 13.7 79.4 N/C
Thailand 43.2 91.5 107.9 113.4 73.8 14.4
Mexico 47.5 44.3 54.2 27.6 71.8 10.9
Denmark 38.9 10.9 43.9 21.6 57.0 10.0

Source: Global Trade Tracker 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

China's top 10 suppliers of flours, meals and pellets of fish or crustaceans, molluscs, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
Peru 47.4 49.4 53.6 45.0 57.6 10.2
United States 12.5 11.3 9.7 11.4 7.2 −5.3
Vietnam 4.6 5.7 5.6 10.1 7.2 2.6
Chile 12.9 9.2 7.0 5.7 4.4 −8.4
Russia 5.9 5.4 6.1 6.3 4.2 −1.7
Ecuador 4.3 2.3 2.6 4.8 3.5 −0.8
Mauritania 0.0 0.0 0.0 0.6 2.7 2.7
Thailand 2.5 5.3 4.7 5.3 2.6 0.1
Mexico 2.8 2.6 2.3 1.3 2.5 −0.3
Denmark 2.3 0.6 1.9 1.0 2.0 −0.3

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of flours, meals and pellets of fish or crustaceans, molluscs, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 1,725.4 1,722.6 2,312.2 2,127.5 2,889.9 13.8
China's imports from Canada 0 0 0 0 0 N/C
Supply gap 1,725.4 1,722.6 2,312.2 2,127.5 2,889.9 13.8

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

5. Frozen offal of swine (excluding livers) (HS020649)

China's top 10 suppliers of frozen offal of swine, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 1,539.6 1,545.6 1,602.2 3,228.4 2,737.8 15.5
United States 537.3 579.3 364.4 1,233.9 1,128.2 20.4
Denmark 279.2 254.6 268.7 445.2 285.5 0.6
Germany 204.5 185.6 300.3 474.2 276.2 7.8
Spain 96.6 136.9 171.9 238.5 257.7 27.8
Canada 160.6 114.8 96.3 261.3 239.7 10.5
Netherlands 21.2 52.0 136.9 204.2 200.4 75.3
France 109.2 104.1 116.4 153.6 148.5 8.0
Chile 30.0 34.9 45.9 57.6 48.9 13.0
Ireland 22.4 26.2 35.7 46.0 42.0 17.0
United Kingdom 19.0 23.6 28.9 48.5 40.3 20.6

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China's top 10 suppliers of frozen offal of swine, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
United States 34.9 37.5 22.7 38.2 41.2 6.3
Denmark 18.1 16.5 16.8 13.8 10.4 −7.7
Germany 13.3 12.0 18.7 14.7 10.1 −3.2
Spain 6.3 8.9 10.7 7.4 9.4 3.1
Canada 10.4 7.4 6.0 8.1 8.8 −1.7
Netherlands 1.4 3.4 8.5 6.3 7.3 5.9
France 7.1 6.7 7.3 4.8 5.4 −1.7
Chile 1.9 2.3 2.9 1.8 1.8 −0.2
Ireland 1.5 1.7 2.2 1.4 1.5 0.1
United Kingdom 1.2 1.5 1.8 1.5 1.5 0.2

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of frozen offal of swine, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 1,539.6 1,545.6 1,602.2 3,228.4 2,737.8 15.5
China's imports from Canada 160.6 114.8 96.3 261.3 239.7 10.5
Supply gap 1,379.0 1,430.8 1,505.9 2,967.1 2,498.1 16.0

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

6. Raw hides and skins of bovine (HS410150)

China's top 10 suppliers of raw hides and skins of bovine, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 2,809.9 3,077.8 3,163.5 2,304.4 2,216.8 −5.8
United States 1,526.4 1,600.1 1,555.9 1,157.7 1,158.6 −6.7
Australia 476.1 612.1 597.1 395.7 369.3 −6.2
Canada 189.7 220.3 179.4 189.5 194.8 0.7
Netherlands 83.7 109.8 131.4 93.0 79.4 −1.3
Spain 19.7 27.7 61.1 60.8 59.2 31.6
Costa Rica 21.0 29.5 69.8 36.5 51.1 24.9
Uruguay 118.8 85.4 104.2 51.5 46.4 −21.0
United Kingdom 67.1 65.6 96.6 50.0 43.9 −10.1
Ireland 30.9 55.2 70.4 52.8 39.6 6.4
France 36.5 58.9 53.8 43.0 38.3 1.2

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China's top 10 suppliers of raw hides and skins of bovine, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
United States 54.3 52.0 49.2 50.2 52.3 −2.1
Australia 16.9 19.9 18.9 17.2 16.7 −0.3
Canada 6.7 7.2 5.7 8.2 8.8 2.0
Netherlands 3.0 3.6 4.2 4.0 3.6 0.6
Spain 0.7 0.9 1.9 2.6 2.7 2.0
Costa Rica 0.7 1.0 2.2 1.6 2.3 1.6
Uruguay 4.2 2.8 3.3 2.2 2.1 −2.1
United Kingdom 2.4 2.1 3.1 2.2 2.0 −0.4
Ireland 1.1 1.8 2.2 2.3 1.8 0.7
France 1.3 1.9 1.7 1.9 1.7 0.4

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of raw hides and skins of bovine, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 2,809.9 3,077.8 3,163.5 2,304.4 2,216.8 −5.8
China's imports from Canada 189.7 220.3 179.4 189.5 194.8 0.7
Supply gap 2,620.3 2,857.6 2,984.1 2,114.9 2,022.0 −6.3

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

7. Frozen bone-in pork (excluding carcasses, half-carcasses, hams, shoulders and cuts)

China's top 10 suppliers of frozen bone-in pork, Can$ millions
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 853.8 836.1 1,285.2 2,922.0 1,980.0 23.4
Spain 99.7 141.8 251.6 510.7 427.0 43.9
Germany 162.2 136.4 324.2 630.0 341.3 20.4
United States 196.3 184.0 142.5 337.8 217.6 2.6
Denmark 139.9 149.0 194.7 305.3 197.7 9.0
Canada 66.4 48.2 74.2 220.9 170.9 26.7
Netherlands 2.3 13.0 43.3 211.8 147.1 183.1
Brazil 2.7 2.2 7.8 240.6 136.0 166.0
France 72.7 59.9 108.6 200.2 130.2 15.7
Ireland 14.2 19.3 39.3 82.1 58.0 42.1
United Kingdom 21.9 32.8 36.9 59.5 53.7 25.1

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

China's top 10 suppliers of frozen bone-in pork, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
Spain 11.7 17.0 19.6 17.5 21.6 9.9
Germany 19.0 16.3 25.2 21.6 17.2 −1.8
United States 23.0 22.0 11.1 11.6 11.0 −12.0
Denmark 16.4 17.8 15.1 10.4 10.0 −6.4
Canada 7.8 5.8 5.8 7.6 8.6 0.9
Netherlands 0.3 1.6 3.4 7.2 7.4 7.2
Brazil 0.3 0.3 0.6 8.2 6.9 6.5
France 8.5 7.2 8.4 6.9 6.6 −1.9
Ireland 1.7 2.3 3.1 2.8 2.9 1.3
United Kingdom 2.6 3.9 2.9 2.0 2.7 0.1

 Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of frozen bone-in pork, Can$ millions
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 853.8 836.1 1,285.2 2,922.0 1,980.0 23.4
China's imports from Canada 66.4 48.2 74.2 220.9 170.9 26.7
Supply gap 787.5 787.9 1,211.0 2,701.1 1,809.1 23.1

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

8. Powdered milk (HS040221)

China's top 10 suppliers of powdered milk, Can$ thousands
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 2,705,174.1 3,636,452.0 1,199,089.9 1,420,068.4 1,971,556.1 −7.6
New Zealand 2,429,950.8 3,314,116.3 1,123,460.9 1,260,075.3 1,780,810.1 −7.5
Australia 71,224.9 89,477.0 30,323.8 70,824.6 70,034.6 −0.4
France 10,931.7 15,138.5 11,148.1 23,802.1 35,976.1 34.7
United States 11,157.3 5,810.3 3,569.2 12,318.1 29,849.5 27.9
Netherlands 7,701.1 9,355.7 16,875.6 20,803.0 29,365.9 39.7
Spain 185.5 0.0 1,160.2 13,006.4 6,852.0 146.5
Ireland 8,716.3 146.6 100.9 814.4 5,682.2 −10.1
Germany 2,492.5 2,431.1 0.4 377.3 2,790.2 2.9
Belarus 0.0 0.0 0.0 0.0 2,380.7 N/C
Singapore 15,680.0 7,066.0 1,109.0 1,313.5 2,220.1 −38.7
Canada (18th) 0.0 0.0 0.8 0.7 20.4 N/C

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

China's top 10 suppliers of powdered milk, % share
Country 2013 2014 2015 2016 2017 * PP Change 2013-2017
New Zealand 89.8 91.1 93.7 88.7 90.3 0.5
Australia 2.6 2.5 2.5 5.0 3.6 0.9
France 0.4 0.4 0.9 1.7 1.8 1.4
United States 0.4 0.2 0.3 0.9 1.5 1.1
Netherlands 0.3 0.3 1.4 1.5 1.5 1.2
Spain 0.0 0.0 0.1 0.9 0.3 0.3
Ireland 0.3 0.0 0.0 0.1 0.3 0.0
Germany 0.1 0.1 0.0 0.0 0.1 0.0
Belarus 0.0 0.0 0.0 0.0 0.1 0.1
Singapore 0.6 0.2 0.1 0.1 0.1 −0.5
Canada (18th) 0.0 0.0 0.0 0.0 0.0 0.0

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of powdered milk, Can$ thousands
2013 2014 2015 2016 2017 *CAGR % 2013-17
China's imports from the world 2,705,174.1 3,636,452.0 1,199,089.9 1,420,068.4 1,971,556.1 −7.6
China's imports from Canada 0.0 0.0 0.8 0.7 20.4 N/C
Supply gap 2,705,174.1 3,636,452.0 1,199,089.1 1,420,067.7 1,971,535.8 −7.6

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

9. Semi-milled or wholly-milled rice (HS100630)

China's top 10 suppliers of semi-milled or wholly-milled rice, Can$ thousands
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 871,937.7 1,140,796.3 1,502,496.2 1,770,321.2 1,904,775.1 21.6
Vietnam 552,636.4 629,359.5 719,811.9 865,005.5 1,165,895.1 20.5
Thailand 181,290.6 351,424.3 503,892.3 465,588.3 500,505.2 28.9
Cambodia 19,480.9 35,265.3 81,627.4 99,530.7 130,562.0 60.9
Pakistan 117,202.0 122,428.8 189,589.8 294,825.3 73,083.0 −11.1
Myanmar 0.0 368.2 2,751.1 38,379.5 27,338.6 320.3
Laos 0.0 0.0 102.2 3,069.6 4,987.1 598.5
Japan 219.6 466.3 3,769.4 2,366.9 1,459.3 60.6
Taiwan 1,066.5 1,244.7 945.6 640.3 375.8 −23.0
South Korea 0.0 0.0 0.0 910.3 274.7 N/C
Russia 0.0 0.0 0.0 0.0 97.9 N/C
Canada (13th) 40.2 0.0 0.0 0.0 2.6 −49.6

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

China's top 10 suppliers of semi-milled or wholly-milled rice, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
Vietnam 63.38 55.17 47.91 48.86 61.21 −2.17
Thailand 20.79 30.81 33.54 26.30 26.28 5.48
Cambodia 2.23 3.09 5.43 5.62 6.85 4.62
Pakistan 13.44 10.73 12.62 16.65 3.84 −9.60
Myanmar 0.00 0.03 0.18 2.17 1.44 1.44
Laos 0.00 0.00 0.01 0.17 0.26 0.26
Japan 0.03 0.04 0.25 0.13 0.08 0.05
Taiwan 0.12 0.11 0.06 0.04 0.02 −0.10
South Korea 0.00 0.00 0.00 0.05 0.01 0.01
Russia 0.00 0.00 0.00 0.00 0.01 0.01
 Canada (13th) 0.00 0.00 0.00 0.00 0.0001 0.0001

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of semi-milled or wholly-milled rice, Can$ thousands
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 871,937.7 1,140,796.3 1,502,496.2 1,770,321.2 1,904,775.1 21.6
China's imports from Canada 40.2 0.0 0.0 0.0 2.6 −49.6
Supply gap 871,897.5 1,140,796.3 1,502,496.2 1,770,321.2 1,904,772.5 21.6

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

10. Spirits obtained by distilling grape wine (HS220820)

China's top 10 suppliers of spirits obtained by distilling grape wine, Can$ thousands
Country 2013 2014 2015 2016 2017 CAGR* % 2013-2017
World 865,666.1 765,526.3 801,942.0 860,994.0 1,126,442.0 6.8
France 860,225.5 759,014.2 794,866.7 856,243.6 1,118,031.4 6.8
United Kingdom 428.4 60.3 0.0 29.8 2,173.1 50.1
Spain 1,209.9 1,099.3 735.5 795.5 969.6 −5.4
United States 465.9 647.5 502.5 469.8 832.8 15.6
Germany 215.7 1,795.6 2,903.9 704.2 793.0 38.5
Georgia 388.8 133.0 19.1 220.7 749.3 17.8
Italy 397.6 718.6 686.0 200.2 491.0 5.4
Armenia 672.8 752.8 538.5 305.9 453.4 −9.4
Chile 107.3 119.4 372.6 220.7 339.7 33.4
Russia 3.8 5.3 93.4 124.1 237.8 180.8
Canada (36th) 0.0 2.2 0.0 3.5 1.7 N/C

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

China's top 10 suppliers of spirits obtained by distilling grape wine, % share
Country 2013 2014 2015 2016 2017 PP* Change 2013-2017
France 99.4 99.1 99.1 99.4 99.3 −0.1
United Kingdom 0.0 0.0 0.0 0.0 0.2 0.1
Spain 0.1 0.1 0.1 0.1 0.1 −0.1
United States 0.1 0.1 0.1 0.1 0.1 0.0
Germany 0.0 0.2 0.4 0.1 0.1 0.0
Georgia 0.0 0.0 0.0 0.0 0.1 0.0
Italy 0.0 0.1 0.1 0.0 0.0 0.0
Armenia 0.1 0.1 0.1 0.0 0.0 0.0
Chile 0.0 0.0 0.0 0.0 0.0 0.0
Russia 0.0 0.0 0.0 0.0 0.0 0.0
Canada (36th) 0.0 0.0 0.0 0.0 0.0 0.0

Source: Global Trade Tracker, 2018

*PP change: Percentage Point (difference between 2017 and 2013 percentage values)

Supply gap of spirits obtained by distilling grape wine, Can$ thousands
2013 2014 2015 2016 2017 CAGR* % 2013-2017
China's imports from the world 865,666.1 765,526.3 801,942.0 860,994.0 1,126,442.0 6.8
China's imports from Canada 0.0 2.2 0.0 3.5 1.7 N/C
Supply gap 865,666.1 765,524.1 801,942.0 860,990.5 1,126,440.4 6.8

Source: Global Trade Tracker, 2018

*CAGR: Compound annual growth rate

N/C: Not calculable

Conclusion

Even though China's imports of processed foods from Canada have continually increased from 2013 to 2017, there is a significant supply gap between the two countries. Over the last five years, China's imports of processed foods from the world have grown faster than their imports from Canada. While China imports processed foods from a large number of countries, among many commodities, the majority of imports come from the top two or three suppliers, leaving just marginal market shares for others.

Canada held an 8.8% market share in three of China's key import commodities (frozen offal of swine, raw hides and skins of bovine, frozen bone-in pork) in 2017, and these are the three categories where Canada falls within the top 10 suppliers, besides frozen boneless beef (3.0% market share). Also, Chinese imports from Canada have increased in five of the top 10 commodities (wine of fresh grapes, frozen offal of swine, raw hides and skins of bovine, frozen bone-in pork, powdered milk) from 2013 to 2017. This may indicate further potential to narrow the gap.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

For additional Information on Food & Hospitality China (FHC) 2019, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-Food Canada
ben.berry@canada.ca

Resources

Competitive Trade Analysis – Processed food trends in China
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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