Branded foods in China - forecasts to 2013

Abstract

Branded foods in China is the latest edition of just-food' s new series considering five countries known as the ' BRICM' economies - Brazil, Russia, India, China and Mexico - from the perspective of the branded/packaged food industry. This series of just-food reports provides analysis and insight into the potential of the food sector in BRICM by considering the best-practice strategies employed by leading multinational and domestic manufacturers alongside trend analysis. Market value forecasts by category are provided to 2013. SWOT analyses are also included for at least one major domestic food company per country. China has the biggest packaged food market value in 2007 of the five BRICM countries analysed, standing at US$96.2bn. It also records a strong track record of value growth from 2002 putting it in second position behind Russia.

The popularity of processed and Western-style food in urban China is starting to be mirrored in parts of rural China, and will grow dramatically as major retailers such as Carrefour seek to expand out of saturated ' first-tier' cities into other regions over the next five years. It is the increasingly sprawling urban population that will drive strong value and volume growth in processed and packaged foods; by 2050 an increase of 115% to 970m is anticipated in the urban region, up from the 450m ' urban-dwellers' found in China in 2000.

Previous growth has been driven by the strong economic development in China. Demand for packaged foods grows annually as people trade up to packaged rather than loosely packed food. The rising role of modern retail formats such as supermarkets, convenience stores (c-stores) and hypermarkets is also having a big impact on the type of food people are buying.

This report analyses this expanding market, provides an insight into retail market trends, analyses the major branded foods categories and considers the best-practice strategies employed by leading multinational and domestic manufacturers. Consisting of over 14,000 words of analysis and commentary, and 11 data tables covering investment potential, market values and more, the key chapters of the report include:

• An introduction to the Chinese branded food and drinks market
• Detailed analysis of the mass grocery retail market in China
• A breakdown of categories including analysis of bakery and cereals, confectionery, dairy and savoury snacks
• Trend analysis with forecasts to 2013

Table of Contents

Chapter 1 Introduction

• Aims and objectives of the report
• Report methodology
• The BRICM market
• BRICM food industry ranking
• Gross domestic product growth
• Packaged food market value

Chapter 2 The Chinese food and drink market

• Tourism to and from China
• Rising affluence
• Key issues and challenges
• Future forecast

Chapter 3 Mass grocery retail market in China

• Domestic strength
• Future forecasts

Chapter 4 Category analysis

• Bakery and cereals
• Confectionery
• Dairy
• Savoury snacks

Chapter 5 Domestic company focus

• Company profile: Inner Mongolia Yili Industrial Group Co, Ltd
• Background
• Financial overview
• History
• Official dairy sponsor for the Beijing Olympic Games
• Quality control issues
• Impact of the melamine scare on the Chinese dairy industry
• Negative impact on a global scale
• Future ambitions
• SWOT analysis
• Strengths
• Weaknesses
• Opportunities
• Threats

Chapter 6 Trends analysis

• Introduction
• Premiumisation
• Ethics
• Fairtrade
• Organic food
• Health

List of tables

• Table 1: BRIC packaged food market investment potential ranking
• Table 2: Population size, 2002-2007 (' 000 and %)
• Table 3: Real GDP growth, 2002-2007 (%)
• Table 4: Packaged food market values, BRIC, 2002-2007 (US$m and %)
• Table 5: Chinese packaged food market value forecasts, 2008-2013 (US$m and %)
• Table 6: Top ten retailers in China by sales value, 2006
• Table 7: China grocery retail market value forecasts, 2008-2013 (US$bn and %)
• Table 8: China packaged food market value by selected categories, 2001-2007 (US$m and %)
• Table 9: China packaged food market value by selected categories, 2008-2013 (US$m and %)
• Table 10: Inner Mongolia Yili Industrial Group financial overview 2004-2006 (CNYbn and no. of employees)
• Table 11: Functional food market value forecasts, China, 2006-2013 (US$bn)