The industry will reach $30.88 billion by 2028 at a CAGR of 13.3%
DUBLIN, May 26, 2023 /PRNewswire/ — The report “China Organic Food Market, Size, Forecast 2023-2028, Industry Trends, Growth, Inflation Impact, Business Opportunity Analysis” has been added to from ResearchAndMarkets.com offer.
The size of the organic food market in China will reach US$30.88 billion by 2028 compared to US$14.57 billion in 2022, according to the publisher.
As the fourth largest organic market in the world and the first in Asia, China is an increasingly important buyer of organic products. In view of market developments, organic food in China has enormous potential in international and domestic markets.
Most Chinese consumers are price sensitive and look for value when buying organic food. China the demand for organic food has grown at a rapid rate over the past decade. Over the next decade, production and demand will continue to grow. China’s economy maintains high-speed growth that has been driven by consecutive increases in industrial production, imports and exports, consumer consumption and capital investment for more than two decades.
China’s organic food industry to grow at a CAGR of 13.34% during the period 2022-2028
Organic agriculture continues to show rapid development worldwide. China is one of the largest agricultural producers and consumers of agricultural products in the world. Agriculture is one of the most important economic sectors in China, which employs more than 295 million Chinese agricultural workers. Although agricultural production is the largest in the world, less than 7% of the world’s land area can be cultivated, which fed more than 18% of the world’s population, in 2023.
China ranks as the world’s leading agricultural producer of rice and major sources of wheat, corn, tobacco, soybeans, peanuts, cotton, potatoes, sorghum, groundnuts, tea, dairy, millet, barley, oilseed, pork and fish products that provide China with a small part of its earnings from foreign trade. The main factors motivating the purchase of organic products, also during the pandemic, reflect the attention of Chinese consumers towards physical health, food safety and its benefits on maintaining a healthy physical condition. More than 2.95 million hectares of land were cultivated organically at the end of 2022 in China. In addition, a series of food scandals have occurred in China in recent years, highlighted the shift of Chinese consumers’ interest towards imported foreign products, even at higher prices, better meet consumer needs in terms of quality and safety.
Models of organic food production in China: the Production System is the main Strength
In China, most organic food is grown by organized systems, unlike other countries where organic food is provided by individuals. There are three main models of organic food production in China: the first is that big business rents land to farmers and pays them. The second model is that with permission from local governments, large companies sign an organic food production contract with farmers. The third is the association of organic producers. The farmers created an association on their own to carry out large-scale organic food production.
Organic dairy industry in China has grown steadily in recent years, driven by growing demand for healthy and safe food products
Based on the China Organic Food segment, organic dairy products account for the majority of the market share. China becomes one of the largest consumers of organic dairy products in the world. The growing demand for organic dairy products in China can be attributed to several factors, including the growing awareness of the use of fertilizers, pesticides and bovine growth hormone in conventional dairy farming practices, which has led consumers to opt for healthier and biological.
These products are known to have higher levels of beneficial nutrients such as vitamins, omega-3 fatty acids, antioxidants, and conjugated linoleic acid (CLA). In addition, the growth of the organic dairy market in China is driven by factors such as rapid urbanization, increasing disposable incomes, and concerns about food security due to widespread food adulteration practices in the country.
China the organic fresh produce industry, which includes fruits, vegetables, meat, poultry and seafood, has experienced significant growth in recent years due to the increasing demand for healthy and safe food products, as well as growing consumer awareness of environmental sustainability and animal welfare concerns. . Organic fruits and vegetables are particularly popular, representing more than 70% market share.
Consumers are willing to pay more for organic products free of harmful synthetic pesticides, herbicides and fertilizers, driven by concerns for health, food safety and environmental sustainability. The Chinese government has encouraged the development of the industry by providing subsidies for organic farming and certification and encouraging sustainable farming practices.
Chinese Supermarket Organic Food Market Set to Grow as Chinese Consumers Continue to Demand Healthy, Safe and Sustainable Food Products
Based on distribution, China’s organic food industry has been divided into hypermarkets, supermarkets, small independent grocers, Internet retail, direct sales, forecourt retailers and other food retailers. In China, the market for organic food products in supermarkets has experienced significant growth in recent years, fueled by increased consumer health awareness, rising disposable incomes and growing concerns about the environmental and health impacts of production methods conventional food. The country’s major supermarkets, including Walmart, Carrefour and Alibaba’s Hema Fresh, have responded to the growing demand for organic products by expanding their offerings.
China is by far the largest Internet-based retail marketplace in the world. Thus, online retail and O2O models are the most effective sales channels for organic food in China. As the largest packaged organic food and beverage consumer market and the fastest growing organic food market in Asia, China The organic market offers many opportunities for foreign B2B investors. Geographically, the consumption of organic products is mainly concentrated in high-tier cities, so large cities like Beijing, Shanghai, Canton, identifying the upper class as the main destination target. Additionally, online grocery platforms like JD.com and Taobao have also entered the market, making organic food products more convenient and accessible to consumers.
Segments – Breakdown of the market according to 6 points of view
1. Organic Baby Formula
2. Organic baby food
3. Organic dairy products
4. Organic oils and fats
5. Organic drinks
6. Organic fresh produce
Distribution Models – Market Breakdown from 7 Perspectives
3. Small independent grocers
4. Internet retail
5. Direct selling
6. Forecourt Retailers
7. Other food retailers
All companies were covered from 3 points of view
1.China Mengniu Dairy Company Limited
2. Abbot China
3. Ausnutria Dairy (China) SA Company
4. TINGYI (CAYMAN ISLANDS) HOLDING CORP
5. Limited WH Group
Main topics covered:
2. Research and methodology
3. Executive Summary
4. Market dynamics
5. PESTLE Analysis
6. China Organic Food Market Analysis
7. Market Share – Analysis of Organic Foods in China
8. Segments – China Organic Food Market
9. Distribution Models – Chinese Organic Food Market
10. Mergers and Acquisitions
11. Business Analysis
For more information about this report visit https://www.researchandmarkets.com/r/acd3tc
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SOURCE Research and Markets