China Food & Beverage
China has been the world’s largest food and beverage market since it overtook the US in 2011, and it continues to grow.
The fast-growing food and beverage (F&B) industry in China is an attractive destination for many international investors. The Chinese F&B industry has a US$ 700 billon share of the global market.
The burgeoning middle class in tier one cities has shown huge appetite for foreign F&B products, while demand for foreign F&B products continues to grow in second and third tier cities.
Younger consumers are more comfortable eating out, gaining exposure to new cuisines and foreign dishes. F&B products that are safe or healthy, and incorporate local taste preferences, are popular among consumers. Thanks to the cross-border e-commerce platform, imported foods are more readily available than ever, both in brick and mortar stores and online.
Foreign investors who import food into China need to be aware of China’s food safety laws and import regulations; and must understand labels and packaging compliance. Food imports can involve lots of red tape for importers, exporters and distributors. Once ready to enter Chinese F&B market, your brand should have a strategy to tap into the habits of China’s emerging middle-class consumers. It is particularly important that new entrants avoid a one-size-fits-all strategy.