Market Overview – China
July 2018
Market snapshot
- China was the most populous country in the world with 1.38 billion people in 2017. The population is expected to reach 1.46 billion by 2030.
- China was the world's second-largest economy and the world's largest all merchandise exporter in 2017. China was also the world's second-largest importer of agri-food and seafood products (considering the EU 28 as a single market).
- China’s gross domestic product (GDP) increased 6.9% to US$12.2 trillion in 2017. China’s GDP is expected to grow by 6.3% in 2018.
- Annual consumer expenditure was US$3,363 per capita in 2017, with food and non-alcoholic beverages representing US$739 or 22% of that total.
- Chinese consumers are increasingly purchasing health and wellness food products, including organics and fortified / functional foods. Packaged foods are also increasingly popular, especially dairy, baby food, and confectionary products.
Contents
Production
In the past few years, corn has overtaken rice as China's primary domestic crop. Volume production grew by a compound annual growth rate of 3.0% from 2012 to 2016.
Meat production is dominated by pork which has grown by a compound annual growth rate of 0.3% from 2012 to 2016. Chicken, the second-largest meat category, grew by a compound annual growth rate of 0.1% over the same period.
Pig numbers have decreased from 2012 to 2016, while sheep, goat, cattle, and buffalo numbers have increased.
Crops | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Corn | 205,719.3 | 218,621.9 | 215,812.1 | 224,795.3 | 231,837.5 | 3.0% |
Rice | 205,936.3 | 205,201.7 | 208,239.6 | 209,811.7 | 211,090.8 | 0.6% |
Fresh Vegetables | 160,916.8 | 161,936.7 | 163,405.8 | 168,408.9 | 170,168.9 | 1.4% |
Wheat | 121,030.0 | 121,930.5 | 126,215.2 | 130,192.3 | 131,696.4 | 2.1% |
Sugar cane | 123,691.4 | 128,735.1 | 126,153.5 | 117,632.9 | 123,059.7 | -0.1% |
Potatoes | 92,807.9 | 95,993.6 | 95,571.0 | 94,916.7 | 99,122.4 | 1.6% |
Watermelons | 70,955.7 | 73,156.5 | 75,054.3 | 77,357.5 | 79,244.3 | 2.8% |
Sweet potatoes | 71,415.6 | 70,741.1 | 71,540.0 | 71,355.3 | 70,793.7 | -0.2% |
Cucumbers | 51,933.5 | 54,361.6 | 56,995.1 | 60,868.9 | 61,949.1 | 4.5% |
Tomatoes | 48,168.6 | 50,694.1 | 52,595.0 | 54,920.0 | 56,423.8 | 4.0% |
Source: Food and Agriculture Organization – Statistics Division (FAOSTAT) Agricultural Production, February 2018. *CAGR: Compound annual growth rate. |
Meat indigenous ('000 tonnes) | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Pork | 54,435.7 | 55,917.3 | 57,661.8 | 55,834.8 | 55,040.6 | 0.3% |
Chicken | 13,198.5 | 13,327.0 | 12,829.6 | 12,631.0 | 13,262.4 | 0.1% |
Beef | 6,306.3 | 6,410.4 | 6,566.8 | 6,670.5 | 7,012.0 | 2.7% |
Duck | 2,950.0 | 2,998.5 | 2,887.2 | 2,840.3 | 3,032.7 | 0.7% |
Goose | 2,544.6 | 2,578.0 | 2,465.5 | 2,420.6 | 2,411.8 | -1.3% |
Source: Food and Agriculture Organization – Statistics Division (FAOSTAT) Agricultural Production, February 2018. *CAGR: Compound annual growth rate. |
Livestock ('000 head) | 2012 | 2013 | 2014 | 2015 | 2016 | CAGR* % 2012-2016 |
---|---|---|---|---|---|---|
Pigs | 475,067.8 | 482,102.7 | 480,095.8 | 471,550.1 | 456,773.3 | -1.0% |
Sheep | 139,615.7 | 143,680.0 | 150,017.4 | 158,490.2 | 162,062.7 | 3.8% |
Goats | 142,933.5 | 141,529.3 | 140,506.9 | 144,817.7 | 149,091.1 | 1.1% |
Cattle | 80,403.0 | 80,328.8 | 80,653.0 | 82,265.7 | 84,523.4 | 1.3% |
Buffaloes | 23,347.9 | 23,253.5 | 23,347.8 | 23,662.3 | 23,800.6 | 0.5% |
Source: Food and Agriculture Organization – Statistics Division (FAOSTAT) Agricultural Production, February 2018. *CAGR: Compound annual growth rate. |
Trade
China is a net importer of agri-food and seafood products. In 2017, China's agri-food and seafood trade deficit was C$65 billion with imports valued at C$162 billion, and C$96.9 billion in exports. China's agri-food and seafood imports increased at a compound annual growth rate of 2.9% from 2015 to 2017.
China's top agri-food and seafood imports in 2017 were soybeans, baby food, palm oil, frozen boneless beef, and wine. Key supplying countries were Brazil, the United States, Australia, Canada, and New Zealand. Canada was China's fourth-largest supplier of total agri-food and seafood products in 2017, with 5.5% market share.
Canada's agri-food and seafood exports to China were valued at C$8.1 billion in 2017. Top exports were canola seed, soybeans, canola oil, dried peas, and canola oilcake. In 2017, Canada registered an agri-food and seafood trade surplus of C$6.5 billion with China.
Commodity | Import Value C$ millions | Top Suppliers & Market Share 1 | Top Suppliers & Market Share 2 | Top Suppliers & Market Share 3 | Canada's Share |
---|---|---|---|---|---|
Soybeans | 51,580 | Brazil 52.8% | United States 35.3% | Argentina 6.6% | 2.2% |
Baby food | 5,265 | Netherlands 28.7% | New Zealand 16.8% | Ireland 16.1% | 0.0% |
Palm oil | 4,516 | Indonesia 63.2% | Malaysia 36.7% | Thailand 3.7% | 0.0% |
Frozen boneless beef | 3,506 | Brazil 32.2% | Australia 19.6% | Uruguay 18.4% | 2.9% |
Wine | 3,306 | France 41.1% | Australia 26.7% | Chile 10.4% | 0.5% |
Greasy shorn wool | 3,301 | Australia 79.7% | South Africa 8.1% | New Zealand 4.3% | 0.0% |
Fish Meal | 2,889 | Peru 57.6% | United States 7.2% | Vietnam 7.1% | 0.0% |
Cotton | 2,837 | United States 45.3% | Australia 22.2% | India 8.9% | 0.0% |
Frozen edible pork offal | 2,737 | United States 41.2% | Denmark 10.4% | Germany 10.1% | 8.7% |
Canola seed | 2,733 | Canada 98.7% | Australia 1.2% | - | - |
Source: Global Trade Tracker, 2018. |
China's processed food imports were valued at C$65 billion in 2017. Canada's share was 3.7%. The United States, New Zealand, Indonesia, Australia, and France were the largest suppliers of processed food to China in 2017, providing 40.3% of the market. China's processed food imports grew by a compound annual growth rate of 5.6% from 2015 to 2017.
Retail sales
Packaged food sales increased at a compound annual growth rate of 4.4% over the period from 2013 to 2017 and are expected to continue increasing at a rate of 5.7% from 2018 to 2022. Within this category, the best performing segments in the last five years were baked goods, sauces, soup, baby food, and breakfast cereals.
Chinese consumers are increasingly purchasing health and wellness food products as shown by the compound annual growth rate of over 5% on most types of health and wellness food products over the period from 2013 to 2017, particularly organics, which grew by 20%. Although retail sales of organics are relatively small compared to naturally healthy and fortified/functional foods, there is great potential for growth with organic sales forecasted to increase at a compound annual growth rate of 13% over the forecast period of 2018 to 2022.
Supermarkets and hypermarkets are the main distribution channels for packaged food and are outperforming small independent grocers. However, these channels have lost market share in packaged food sales in recent years due to rising competition from e-commerce sites, which are experiencing growth thanks to the increasing number of smartphone and Internet users.
Category | 2013 | 2014 | 2015 | 2016 | 2017 | CAGR* % 2013-2017 |
---|---|---|---|---|---|---|
Total | 83,131 | 92,552 | 97,933 | 101,796 | 107,632 | 5.3% |
Better For You | 1,879 | 2,011 | 2,097 | 2,300 | 2,481 | 5.7% |
Fortified/Functional | 38,135 | 43,188 | 45,269 | 46,501 | 48,866 | 5.1% |
Free From | 9,515 | 9,643 | 9,523 | 9,218 | 9,124 | -1.0% |
Naturally Healthy | 32,463 | 36,176 | 39,111 | 41,425 | 44,323 | 6.4% |
Organic | 1,139 | 1,534 | 1,933 | 2,351 | 2,839 | 20% |
Source: Euromonitor International, 2018. *CAGR: Compound annual growth rate. |
Category | 2013 | 2014 | 2015 | 2016 | 2017 | CAGR* % 2013-2017 |
---|---|---|---|---|---|---|
Total | 186,514 | 202,516 | 209,246 | 218,910 | 231,641 | 4.4% |
Baby Food | 14,994 | 17,370 | 18,811 | 19,703 | 21,490 | 7.5% |
Baked Goods | 17,979 | 20,323 | 22,210 | 24,980 | 28,571 | 9.7% |
Breakfast Cereals | 671 | 747 | 827 | 914 | 1,002 | 8.4% |
Confectionery | 14,710 | 16,160 | 15,679 | 15,725 | 16,006 | 1.7% |
Dairy | 45,237 | 49,965 | 51,066 | 52,917 | 55,221 | 4.1% |
Edible Oils | 13,883 | 13,565 | 13,798 | 14,102 | 14,404 | 0.7% |
Ice Cream and Frozen Desserts | 6,706 | 7,177 | 7,057 | 7,244 | 7,496 | 0.0% |
Processed Fruit and Vegetables | 1,021 | 1,120 | 1,210 | 1,336 | 1,466 | -2.1% |
Processed Meat and Seafood | 13,053 | 12,817 | 12,539 | 12,732 | 13,070 | 3.0% |
Ready Meals | 1,110 | 1,179 | 1,081 | 1,013 | 996 | 7.4% |
Rice, Pasta and Noodles | 25,780 | 27,486 | 28,007 | 28,853 | 29,911 | 5.9% |
Sauces | 10,979 | 12,345 | 13,541 | 14,554 | 15,670 | 8.9% |
Savoury Snacks | 12,922 | 14,050 | 14,953 | 16,065 | 17,230 | 5.9% |
Soup | 51.5 | 58.5 | 67.6 | 73.7 | 78.9 | 8.9% |
Spreads | 965 | 1,027 | 1,085 | 1,155 | 1,225 | 4.9% |
Sweet Biscuits | 6,454 | 7,127 | 7,314 | 7,546 | 7,804 | 3.9% |
Source: Euromonitor International, 2018. *CAGR: Compound annual growth rate. |
Category | 2018 | 2019 | 2020 | 2021 | 2022 | CAGR* % 2018-2022 |
---|---|---|---|---|---|---|
Total | 114,567 | 122,295 | 131,142 | 140,701 | 151,026 | 5.7% |
Better For You | 2,701 | 2,979 | 3,289 | 3,629 | 3,999 | 8.2% |
Fortified/Functional | 51,959 | 55,308 | 59,023 | 62,995 | 67,303 | 5.3% |
Free From | 9,220 | 9,453 | 9,857 | 10,369 | 10,989 | 3.6% |
Naturally Healthy | 47,302 | 50,559 | 54,292 | 58,283 | 62,513 | 5.7% |
Organic | 3,385 | 3,996 | 4,682 | 5,426 | 6,223 | 13% |
Source: Euromonitor International, 2018. *CAGR: Compound annual growth rate. |
Category | 2018 | 2019 | 2020 | 2021 | 2022 | CAGR* % 2018-2022 |
---|---|---|---|---|---|---|
Total | 246,123 | 263,109 | 282,123 | 302,921 | 325,368 | 5.7% |
Baby Food | 23,535 | 25,624 | 27,770 | 29,991 | 32,332 | 6.6% |
Baked Goods | 32,222 | 36,465 | 41,447 | 47,019 | 53,252 | 10.6% |
Breakfast Cereals | 1,084 | 1,170 | 1,265 | 1,365 | 1,468 | 6.3% |
Confectionery | 16,624 | 17,449 | 18,521 | 19,806 | 21,310 | 5.1% |
Dairy | 58,163 | 62,246 | 66,432 | 71,033 | 75,897 | 5.5% |
Edible Oils | 14,743 | 15,125 | 15,577 | 16,076 | 16,624 | 2.4% |
Ice Cream and Frozen Desserts | 7,838 | 8,173 | 8,549 | 8,921 | 9,288 | 3.4% |
Processed Fruit and Vegetables | 1,592 | 1,733 | 1,886 | 2,047 | 2,213 | 6.8% |
Processed Meat and Seafood | 13,412 | 13,866 | 14,480 | 15,195 | 15,953 | 3.5% |
Ready Meals | 992 | 1,012 | 1,045 | 1,083 | 1,122 | 2.5% |
Rice, Pasta and Noodles | 31,007 | 32,292 | 33,853 | 35,612 | 37,530 | 3.9% |
Sauces | 16,926 | 18,212 | 19,588 | 20,990 | 22,407 | 5.8% |
Savoury Snacks | 18,494 | 19,828 | 21,305 | 22,844 | 24,459 | 5.8% |
Soup | 84 | 89 | 94 | 98 | 101 | 3.7% |
Spreads | 1,295 | 1,367 | 1,446 | 1,526 | 1,606 | 4.4% |
Sweet Biscuits | 8,112 | 8,457 | 8,866 | 9,315 | 9,806 | 3.9% |
Source: Euromonitor International, 2018. *CAGR: Compound annual growth rate. |
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.
Overview of Trade Commissioner Services in China
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.
Resources
- Euromonitor International, 2018. China Country Profile.
- Euromonitor International, 2017. Consumer Lifestyles in China.
- Euromonitor International, 2018. Packaged Food in China.
- Food and Agriculture Organization – Statistics Division (FAOSTAT) (2017). Agricultural Production – China.
- Global Trade Tracker (2018). Import and export statistics – China.
Market Overview - China
Global Analysis Report
Prepared by: Kris Clipsham, International Market Research Analyst
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