China is the land for huge opportunities for international F&B Brands in 2020. 

Food in China is a huge Market, but why most International Food & Beverage Companies are not so successful?



China is known for a buoyant opportunity for International food companies at this moment in time. International companies are trying to break into the Chinese market not merely due to its unstoppable economic growth or for its inexpensive labor but rather for the increased purchasing power of its consumer market. China’s fast-expanding middle class is expected to triple their spending over the coming years, reaching $6 trillion by 2020. Multinational companies cannot afford to ignore the Chinese market, rather they are coming up with viable marketing solutions to target the second biggest consumer market in the world.


the Chinese middle class

Growing middle-upper class has been spending on health and wellness tremendously over the last decade. The market is expected to reach nearly $70 billion by 2020, as a result of both rising incomes and awareness about wholesome living. Chinese urbanites are increasingly drawn towards “all natural,” edible products, they are keen on checking details on food labels and as a result, they are willing to pay a premium for healthy food. The country is already the world’s most health-conscious, according to a 2017 BCG survey. This has created tremendous investment opportunities for foreign investors in food business in China, especially for the ones involved with organic and health food products.




Food Market Trends

For a long time China has been under food scandal highlights. Now that Chinese consumers are more aware about healthy eating habits and have high purchasing power they are ready to pay for foreign produced healthy, save food products to steer themselves away from domestic food safety issues.

Pay for Safety 

According to Food and Beverages Consumer Insight in China survey, 86% of consumers from tier 1 and tier 2 cites consider food safety before buying the food. Chinese consumers are very cautious about the food products they use, it doesn’t take long for them to stop using a product if a food brand has been under safety incidents. According to survey by Iposos, upto 90% of Chinese consumers prefer edibles without any food additives. As part of wholesome living more than half of Chinese population strictly watch their weight and like to consume food with less calories.


Natural & healthy

Food brands that cater to segments such as; no artificial additives, organic ingredients, low calorie and slimming effect have huge potential in Chinese food market.


“If you were born in the 80s and live in a first- to third-tier Chinese city, chances are you’re into healthy living,” says Tian Tian Mayimin, founder and CEO of Shanghai-based V Cleanse, one of China’s first cleanses companies.

Trust is Really important in China especially in the Food industry