Market Overview – China

Country profile

China is one of Canada's largest export markets for agri-food and seafood products. Exports to China have been driven by its massive population, rapid urbanization, and rising disposable income of the growing middle class. This has led consumers to become more sophisticated and increase demand for imported food.

China is the most populous country in the world at 1.40 billion people in 2019, which is forecast to grow to 1.42 billion by 2024. The ten largest cities are located in the eastern half of the country, situated on or near the coast. Shanghai is the biggest city with 22.7 million people, followed by Beijing with 20.4 million.

China has the world's second largest economy. Economic growth in China has been subdued since 2019 due to the effects of the trade war with the U.S. and the novel coronavirus outbreak, which have severely impacted several domestic industries and essentially secluded China from the global market. In response, the Chinese government has rolled out policy and fiscal measures to stimulate the economy, which are forecast to grow in real GDP terms from US$11,495.45 billion in 2019 to US$ 15,177.71 billion by 2024.

Production

Corn is China's primary domestic crop, followed by rice. Volume production of corn grew by a CAGR of 4.5% from 2014 to 2018.

Meat production is dominated by pork, which has fallen by a CAGR of −6.8% from 2015 to 2019. Chicken production, the second-largest meat category, has stayed the same while beef production has increased 2.0% over the same period. Pig numbers have decreased from 2013 to 2017, while sheep, cattle, and buffalo numbers have remained steady.

Trade

China is a net importer of agri-food and seafood products. In 2019, China's agri-food and seafood trade deficit was Can$94.7 billion with imports valued at Can$198.9 billion, and Can$104.2 billion in exports. China's agri-food and seafood imports increased at a CAGR of 7.6% from 2015 to 2019. In 2019, Canada had an agri-food and seafood trade surplus of Can$8.0 billion with China.

China's top agri-food and seafood imports in 2019 were soybeans, baby food, frozen boneless beef, palm oil, and frozen shrimp. Key supplying countries were Brazil, the U.S., Australia, New Zealand, and Canada. The top five agri-food and seafood suppliers to China accounted for Can$94,114.6 billion or 47.2% of the total imports in 2019.

Canada's agri-food and seafood exports to China were valued at Can$6.5 billion in 2019, down from Can$10.5 billion in 2018, a 38.0% decline. Declining exports to China include oilseeds (−78.3%), canola oil (−25.4%), grains/cereals (−15.7%), and edible vegetables and pulses/peas (−1.6%) in 2019.

China's processed food imports were valued at Can$106.6 billion in 2019. Canada's share was 3.0%, down from 4.2% in 2018. New Zealand, Australia, Brazil, Indonesia, and the U.S. were the largest suppliers of processed food to China in 2019, providing 35.9% of the market.

Processed food and beverage imports increased at a CAGR of 14.2% over the period from 2015 to 2019. The fastest growing imports in the last five years were frozen shrimp, frozen pork, frozen beef, food preparations, and powdered milk.

Frozen beef (HS 020230)

Canada was China's 6th largest supplier of frozen beef with imports valued at Can$112.4 million. China's frozen beef imports from Canada have shrunk by a CAGR of −16.2% since 2015 to a market share of 1.2%. Imports from established and smaller suppliers have grown significantly, with the highest growth coming from the U.S. (804.3%), Ireland (699.3%), and Chile (127.9%).

Baby food (HS 190110)

China's baby food imports have grown by a CAGR of 21.5% since 2015, with the highest growth from New Zealand (59.2%) and EU countries. China's largest baby food suppliers in 2019 were New Zealand and EU countries. Between 2015 and 2019, baby food imports from Canada have grown to Can$1.4 million, or by a CAGR of 12.2%.

Baby milks (infant formula) dominate the baby foods category. The majority of milks are imported, due to strong consumer preference for imported (milk) products, but most cereals, meals, and other baby food products are produced locally. EU member states are the largest suppliers of infant formula to China.

Frozen shrimp (HS 030617)

China's largest suppliers of frozen shrimp in 2019 were Ecuador, India, Thailand, and Argentina; while Canada ranked 14th. Frozen shrimp imports have experienced tremendous growth since 2015, growing overall by a CAGR of 74.2% with the highest growth coming from Saudi Arabia and Peru. Frozen shrimp imports from Canada have fallen by a CAGR of 5.7% between 2015 and 2019.

For more information

The Canadian Trade Commissioner Service:

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.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

For additional information on trade shows in China, please contact:

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

Market Overview – China
Global Analysis Report

Prepared by: Kris Clipsham, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2021).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.