Analyse the Chinese Food and Drink Market in This Q3 2008 Report As the Growth Outlook Remains Strong
Posted on: Friday, 15 August 2008, 12:00 CDT
Research and Markets (http://www.researchandmarkets.com/research/a33aef/china_food_and_dri) has announced the addition of the "China Food and Drink Report Q3 2008" report to their offering.
Our China Food Drink Report provides independent forecasts and competitive intelligence on China's food and drink industry.
As the Beijing Olympics finally nears, growth in China's explosive and enormously attractive food and drink market shows no sign of tapering off. The author has added new food category sales growth indicators to its China Food & Drink Report for Q308 and both paint an overwhelmingly positive picture of a vast market in which sustained urbanisation and middle class emergence is driving demand for non-essential, added-value and luxury food and beverage items.
Our food consumption growth outlook remains strong; total consumption in yuan terms is forecast to increase by 61.3% to CNY1.59trn in 2012, while growth in dollar terms is set to far exceed this at 128.1% to US$295.3bn in 2012 thanks to the continued appreciation of the yuan against the dollar. Growth within individual added-value food categories is as positive. China is the world's largest market for instant noodles and value sales of the product are forecast to grow by 125% to US$9.5bn in 2012 according to our new forecast.
Frozen food sales - the other newly incorporated indicator - are set to increase by 67% to US$19.1bn in 2012, lower growth here being attributable to the comparatively high prices of frozen food products and the still low penetration of white goods in homes beyond major urban centres.
Even spiraling food prices are failing to dent our positive outlook for consumption, thanks both to economic development and the efforts of manufacturers to offset the impact of higher prices. Faced with inflation reaching a 10-year high of 8.7% year-on-year (y-o-y) in February, producers have begun to invest in added-value, higher-margin produce. This strategy encourages consumers to spend more, but offers them improved value in return; it does not simply require them to pay more for an item they used to pick up cheaper.
With our forecasting average inflation of 5.4% in 2008, multiple manufacturers have joined the premiumisation bandwagon. Brewers Tsingtao and Kingway have revealed plans to focus on premium beers in urban centres, while leaving lower-priced mass-market brands to dominate in less-affluent parts of the country. Instant noodle market leader Tingyi has announced plans to improve its healthy noodle portfolio, while frozen food producer First Natural has confirmed that it will focus in packaging innovations in a bid to upgrade consumers to higher-margin items.
Meanwhile, Mengniu Dairy has revealed that it will commit heavily to innovation to at least keep affluent consumers interested in the booming dairy market.
Food safety remains a dark cloud hovering above this dynamic and high-growth industry, and substantial investment is needed if China's global reputation is to be rescued. For the time being, however, China's food market continues to offer the kind of returns that make the food safety cloud one worth weathering.
Key Topics Covered:
- Business Environment
- China's Food & Drink Business Environment Rating
- China Food And Drink Industry SWOT
- Mass Grocery Retail
- Macroeconomic Outlook
- Industry Forecast Scenario
- Food
- Food Consumption
- Trade
- Industry Developments
- Market Overview
- Agriculture
- Organics
- Food Production
- Drink
- Agriculture At A Glance
- Agricultural Commodity Prices
- Competitive Landscape
- Key Players
- Company Analysis
Companies Mentioned:
- Carrefour
- China Foods Ltd (formerly China National Cereals Oils And Foodstuffs)
- Lianhua Supermarket Holdings
- Tingyi (Cayman Islands) Holding
- Tsingtao
- Wahaha
For more information visit http://www.researchandmarkets.com/research/a33aef/china_food_and_dri.
Source: Business Wire
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