Prospect for the Growth of Chinese Domestic Food Market and Challenges
|Author||Lee Jun, Jo Young Sam||Date||2013.07.04||Issue No||561|
○ The processing food market in China is growing at a rapid pace, thanks to the steady rise in consumption expenditure, and the structure of food consumption is also gradually being converted into westernized diets.
- As of 20011, the demand for processing food in China was surveyed to reach 140.4 $ billion, and is prospected to grow 11% on an annual basis by 2015.
○ Although the ratio which the Korean food products account for in the Chinese domestic food market is negligible, some of the products are confirmed to have competitive edges and great growth potential in terms of food safety, taste and product design.
- Among the Korean food products, dairy products, confectionery and bakery, noodles, ginseng processed foods and some of beverages appear to have competitive edges and great potentials to grow in the future.
- In contrast, instant food, Kimchi, sauce and jangryu, drinks as well as baby/child foods produced by Korean enterprises are still consumed largely by Korean Chinese although the food products are raising their awareness among Chinese consumers.
○ Korean food products are recording sluggish growth in the Chinese domestic market despite their great growth potential because of the practice of enforcing local distributors to purchase more products, passive investment and business and management tendency focused on short-term performance.
○ It is a time for Korea to prepare long-term strategy to utilize the sharply growing Chinese food market, as a source of the sustainable growth engine for Korean food industry.