Changing Chinese food market trends

Because of C19, the place of consumption is rapidly shifting from an offline store such as a market, a department store, or a large mart to an era of contactless (non-contact) consumption, where no human contact is required. In the case of other consumer staples, C19 brought about changes in consumption patterns and patterns, while in the food sector, demand for consumer goods changed. How has C19 changed the Chinese food industry?

Growing consumption per person

In order to reduce the likelihood of infection of coronavirus due to contact with others, the eating method of’one-person diet’ and’horn rice’ is emerging as a trend. In particular, during the C19 period, the growth rate of consumption of single food items was clear. According to a user analysis of one of China’s delivery apps, Meituan, the number of single-user diet users in mid-February when operations resumed was 32.4 compared to the number of customers who used the Meitean one-man diet in early February, when operations were suspended due to C19. % Increased. In late February, when the resumption of operations reached 90%, the number of single-person diet users increased by 150.8% in early March and by 226.8% in early March, and the single-person diet began to take hold as a culture.

Health-conscious consumption

The second major change is increased interest in immunity. With Corona 19, many people have become more interested in immunity, and according to the latest report from investigative agency Mintel, 59% of Chinese 20-49 year-old parents wanted to buy foods and drinks that boosted their child’s immunity. 54% of 74-year-old consumers were interested in foods with increased immunity.

In particular, compared to other countries, the functional food consumption per capita in China is significantly lower at 29 dollars compared to the interest in increasing immunity , and is much lower at 122 dollars in Korea, 168 dollars in Japan, and 236 dollars in the US compared to other countries. The potential for development seems large.

Food market in China changes in line with demand trends

The food market in China is rapidly changing in line with the demand trend of the food market brought by C19. First, in order to avoid group meals and meet the demand for meals for one person, a single-person restaurant is being created that can be comfortably eaten alone. Compared to the past, rice with smaller packaging and edible oil containing less than the previous are on the market. Even in the case of alcoholic beverages, there was a change in the packaging size, but new products such as 200ml miniature wines and liquor that have been reduced in size from 750ml are appearing one after another.

In addition, as interest in health food in China has increased, various foods focusing on health have emerged. The most notable change is that many foods based on plants are appearing. First, representative foods are natural seasonings and artificial meat made from plants. On April 20, 2020, KFC made plant and natural seasonings in KFC, China, on April 22, from Shanghai Starbucks, a salad set with artificial meat, and on June 1, from Pizza Hut to artificial meat. The hamburger set was released.

In particular, according to IPSOS survey data, 86% of consumers said that they would change their meat consumption habits after C19, and about 40% of consumers would reduce consumption of meat products as much as possible. In other words, it was found that the marketability for artificial meat is highly likely to develop.

The second is dairy. In the case of the dairy market, the growth potential is high as the average annual market growth rate in 2016 is 14.7%. Therefore, in addition to the functions of the existing dairy products, new functions [Probio LG21 (helicobacter bacterium suppression and cancer prevention rate improvement), R-1 (prevention of toxic substances), Probio PA-3 (reduction of ventilation, reduction of uric acid value), etc.] are added. Through this, efforts are being made to meet the demand for the increasingly segmented consumer base.

Outlook and Implications

The meaning of expanding the single-person consumer class means that you can reveal your own personality and challenge or choose something out of the habitual choice to meet the public. Accordingly, it is necessary for Korean companies to develop products that expand the loyal customer base and develop new approach strategies through analysis of China’s segmented consumer base. In particular, it is necessary to build a platform that can communicate with each other or to collaborate with platform companies in China to facilitate feedback on customers’ groceries.

In addition, when the term health is a food purchase, it becomes an important criterion, attaching certain nutrients or adding new functions, and data of each field such as material production-processing-storage-transportation through blockchain technology or new technology. There is a need to raise a sense of trust in food by providing a way to share with the consumer.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!