China is one of the largest consumers and producers of food and beverage in the world. Rising incomes are adding sophistication to this market. Urban Chinese tend to spend a larger proportion of the incomes on buying processed and imported food and beverage from supermarkets and eating outside in restaurants. Both the supermarkets and the specialized
The distribution of food and beverage in China
As such a large and powerful country now in the world, China is very attractive for the food producers and the exporters. The food and beverage market in China is extremely diverse and fermented, in terms of product types and regional differences, so that before entering China, thorough market research is needed.
The new trend of food and beverage market in China: Health food market
It is forecast that by the year 2015, the health food market(known in France as produits Bio) in China will have grown to 450 billion Yuan. China is the largest producer of nutritional supplements in the world and it is difficult for imported products to compete with the domestic companies on price alone. So lots of foreign companies plan to establish production factories in China to supply the Chinese or export markets. There are many layers of distribution for the health food industry in China. Generally the distribution companies in tier-one cities will gain distribution rights from foreign companies, and then select provincial sub-distributors to penetrate local markets via their established relationships. These products are always sold in the high-end supermarket, such as the City Shop, ParknShop International, Ole, BHG supermarket, C-mart, City Super etc, and concentrated on the rich group in China.