The market for
organic food in China has seen a magnificent growth rate over the period
2010-2015 considering the very low proportion of organic food consumers in the
country. The growing demand in the healthy, non-industrialized production has
led to the development of several subscription farms to cater to the demand,
especially from the urban populations. Organic food consumption has been
predominantly limited to the economically richer section of the society over
the period 2010-2015. China has currently become the world’s fourth-biggest
consumer of organic food. International organic food fairs that had major
organic nations such as Denmark, Germany and Australia showcasing their organic
products like dairy, meat and wine reflect the growing popularity of this
market outside. Also, rampant food scams in 2012 and 2013 led to surge in
demand for imported organic products from foreign destinations like North America,
EU, Denmark and Australia. Besides, foreigners residing in the mainland have
brought with them different food habits to the nation which has led to widening
of the organic food portfolio in the nation.
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| China Organic Food |
Organic tea
market in China has been heavily encouraged because of its substantial demand
in the domestic as well as export market. There is a high potential for
tropical fruit market in China on account of low domestic production. Producers
having exotic tropical fruits like banana, durian, pineapple, pamelo, star
fruit, rambutan and guava in their product portfolio can penetrate the market.
Additionally, fruits like strawberries, grapes, apples and pears have been
traditionally favored in the market.
The competitive
scenario in the market is quite fragmented with presence of around 730
companies engaged in China organic food and beverage production. There are only a
handful of small companies who have their businesses totally dedicated to
organic production and processing. Yili and Mengniu are the two largest organic
dairy companies. Hebei Qimei, Taian Taishan Asia and Tony’s Farm are the three
of the largest organic food manufacturers in China.
The rapid growth
of organic food and beverages coupled with the growing e-commerce market in China
has incentivized many organic retailers to venture into the online segment of
organic food and beverages. Most of the online retailers have tie ups with
various producers of organic food whereas others operate their own online
portals. Online stores help in saving costs as online retailers save
considerable amount of money in terms of infrastructure investment. On the
other hand, they can penetrate a huge internet customer base.
For more
information on the market research report please refer to the below mentioned
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Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
