Market Insights: Keep up with the latest trend
Food & Catering Market Insights: Keep up with the latest trend
In 2021, China's total food imports continued to grow, reaching a new peak in the last 10 years with the amount of $135.46 billion, and 24.5% increase over 2020. At present, meat products, grains products, marine products, dairy products and fruits products, become the top five imported food categories in China. With the impact of the epidemic gradually fading, the Chinese economy and international trade will recover thanks to increasingly favourable policies.
New policies benefit China’s import/export trade
· China has downgraded management of COVID-19 from Class A to Class B from January 8, 2023
No sealed control of COVID-19 cases and designation of high-risk areas. Foreign trade visitors coming into the country take no more quarantine but only nucleic acid tests 48 hours before departure.
· Multiple new laws and regulations that affect doing business in China came into force on January 1, 2023.
1,020 commodities will be subject to provisional import tariff rates that are lower than the tariffs of the most favoured (MFN) country. Import tariffs are reduced on homogenized mixed food, frozen blue cod, cashew nuts, and other food for infants and young children.
Market regains its power and shows positive signal in 2023
· In 2020, China's snack food market size reached RMB 1.26 trillion and is expected to expand to RMB 2 trillion by 2026.
· In 2022, the cumulative retail sales of food, beverages, tobacco, and alcoholic beverages by retail enterprises above the quota in China amounted to RMB 577.62 billion. The offline channel is still the main channel for casual food sales in China, with food shops, supermarkets, and convenience stores accounting for 83% of the overall sales channel, and the online channel accounting for only 13%.
· In the first half of 2022, the sales revenue of food manufacturing industry reached RMB 156.206 billion, with 30% year-on-year increase. Edible vegetable oils, liquid milk and dairy products, instant noodles and other convenience foods ranked among the top three food industries in terms of sales revenue.
· In 2022, total national restaurant revenue was RMB4,394.1 billion, restaurant revenue from units above the quota was RMB 1,065 billion, with restaurant occupancy rates returning to over 80% and online orders growing by over 200% from the beginning of 2023.