The China Frozen Food Market is a “Hot” One
The frozen food market in China has been growing rapidly in recent years, making it a hot location for food brands to explore. The industry has been benefiting from the rise of the country’s middle class, which now consists of over 400 million people and is demanding more convenience food as they lead busier lifestyles. Additionally, the COVID-19 pandemic has added fuel to this growth, as more people stay at home and cook for themselves.
Market Growth and Trends
According to a report by ResearchAndMarkets.com, the Chinese frozen food market is projected to grow at a compound annual growth rate (CAGR) of 7.09% over the forecast period of 2021-2025. Several factors are driving the growth, including increasing urbanization, westernization of dietary habits, and a shift toward a more health-conscious lifestyle.
One of the most significant trends within the frozen food industry is the increasing demand for natural and organic options. Consumers are becoming more conscious of the safety and health benefits of their food, and they are willing to pay a premium for higher quality. As a result, many brands have started to launch organic and natural frozen food products.
Another trend that has been slowly gaining traction in the Chinese market is plant-based frozen food. There is a growing demand for vegetarian and vegan options, driven by younger consumers. The global plant-based protein market is expected to grow at a CAGR of 14.0% over the period of 2021-2026, and China has become one of the key players in this market.
Opportunities for International Brands
The Chinese frozen food market presents excellent opportunities for international brands looking to expand their businesses. The overall market is fragmenting, with smaller regional players dominating particular segments. International brands, therefore, have a significant opportunity to gain market share by offering well-known brands and promoting the value of their products’ quality and safety.
However, the Chinese frozen food market has been traditionally seen as a product of low quality, and food safety issues have been a concern. Several well-publicized scandals have hurt consumer confidence in the industry, and there is a general lack of trust in frozen food products. International brands, therefore, need to pay close attention to the quality and safety of their products and build a brand image that resonates with the Chinese consumer.
Key Players in the Chinese Market
The top players in the Chinese frozen food market include Nestle SA, General Mills Inc., ConAgra Brands Inc., and Unilever NV. These companies have a significant presence in China and have been expanding their product lines to capture market share.
Recently, companies such as Beyond Meat and Impossible Foods have also entered the Chinese market, looking to capitalize on the growing demand for plant-based protein. Beyond Meat has partnered with Starbucks to launch its breakfast sandwich in China, while Impossible Foods has joined forces with popular fast-food chain Burger King.
The China frozen food market has a lot of growth potential in the coming years, and international brands need to be aware of the trends and challenges in the industry. The demand for natural, organic, and plant-based frozen food options is a significant opportunity for brands looking to enter the market, but they must ensure that their products meet high quality and safety standards. With increasing competition and awareness among consumers, the key to success will be building a brand image that resonates with the Chinese consumer.