Lebensmittelhandel und Konsumtrends in China

As one of the biggest food markets in the world, China has been the target of many food- and agri-business companies. The objective of this study is to provide practical information for the potential investor and exporter by describing the structures and trends in the retail food trade of China. This study characterizes the present food trade of China, and elaborates on the most important structures and trends. These are illustrated with the help of a case study about the retail food trade. Owing to regional differences, firms in the small city Jinghua, the medium sized city Hangzhou and in Beijing are examined and compared. Being closely connected with the economic reforms, the economic growth and the rising incomes of consumers has resulted in continuous increases in the volume of retail food sales in China. However, regional, urban and rural differentiation can be observed. Although the traditional retail outlets are still the most important type of store, both the weekly market and the food wholesale market function as main shopping places, particularly for fresh products and lower price items. On the other hand, in cities, modern supermarkets are gaining in popularity, primarily due to the flexibility offered by self-service and the wide assortment of merchandise. The concentration process in the retail food trade is beginning, although the degree of concentration is still very low. Due to the increasing competition, large sized enterprise groups are springing up by acquisition, co-operation and merger. Regionally, chain stores have expanded explosively. As a strong source of competition to domestic enterprises, internationally operating enterprises have been involved in Chinese retail food trade with several supermarkets in large cities. The once planned and supply driven Chinese food market has now become largely consumer driven. Together with the continuously increasing household income, this has led to a great variety of supplied food products. Chinese consumers have altered their food consumption behaviour, most notably by increasing their share of animal and higher value products. Especially in cities, the trend is going towards processed, prepared or pre-cooked food, health food, wine and beer, as well as non-alcoholic beverages such as mineral water and juices. In the last five years, the exports of animal products, beverages, sweets, canned vegetables, and canned fruits from Germany to China have increased with high growth rates.