The frozen Food market in China is expected to reach more than USD 26,492.8 Million by 2024, driven by a massive demand. Chinese people are becoming more and more sophisticated consumers, so they pay extreme attention while making food purchases. This trend is expected to win the market of frozen food products in China over the coming years.
The target for this industry can be further extended to schools, military camp, tourism, fast food industry, and other fields which will provide an opportunity for expansion. The Key Players are building intelligent giant factories and storages to focus on cold storage transport, usage of high-quality ingredients to boost the market of frozen food products in China.
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Over the years, the industry of frozen food production in China has developed rapidly. The change of Chinese consumers eating habits has driven the demand upwards and China is likely to fulfill the growing demand. Packaged frozen meals, chilled, or shelf-stable that are ready to eat or require additional food ingredients will continue to know high-demands in the coming years.
Today, Millennials have a dynamic lifestyle with lesser time available for cooking and this is the major driving factors for the significant growth of the frozen food market in China. The convenience of frozen food is the key factor which is expected to drive the frozen food market growth over the forecast period.
Hypermarkets, Supermarkets and convenience stores in China are expected to reach maximum profit margin owing to the sourcing of Chinese frozen food. Chinese mentality about food, diet and eating pattern are changing, better quality, healthier ingredients, more reliable in nutrition are becoming a new movement in China food production.
Market Size of Frozen food Industry by Type (USD millions)
The Top leading companies in the Chinese Frozen food market include Sinian, Sanquan Food Co Ltd, and Longfeng. However, the gap between these three top companies is very high in natural and Sanquan is the largest of all since the company’s products are exported all over the world.
Ready-to-eat frozen meals is another sub-sector to explore. According to research firm Mintel, this sector will grow at a CAGR of 9.5% until 2020, with fish singled out as a potentially high-value category. We have noted several areas where demand is skyrocketing:
• Breakfast meals – 42% growth predicted between 2016-2020
• Low calorie/healthy options – 39% growth predicted between 2016-2020
• On-the-go meals – 31% growth predicted between 2016-2020
• Kids’ meals – 28% growth predicted between 2016-2020
With some new Chinese consumption habits and crazy urban lifestyles, frozen seafood market represents one of the world’s most appealing in China. Some reports show a voracious appetite for chilled or frozen offerings.
For example, we have “Pollock”, roughly $883 million worth of frozen Alaskan pollock reaches Chinese shores each year. Moreover, cuttlefish and squid shipments amount to $445 million annually, with cod also seeing the same sector.
High-end product varieties, such as king crab and lobster, are also seeing import values rise. A taste for more gourmet varieties is present, especially in more urban areas. Frozen crab exports to the Chinese market rack up $170 million in revenues annually. China also imports roughly half a billion dollars’ worth of lobster, including rock and Homarus species, each year.
Segmentation by Type
• Frozen ready meals
• Frozen pizza
• • Frozen Meat
• Frozen potato products
• Frozen bakery products
In the future, Frozen potato products are expected to be the fastest growing segment owing to ease of consumption and cooking, followed by frozen meat and frozen ready meals. Others segments which includes soups, fruits, and vegetable products are expected to show faster growth than bakery products.
According to the Chinese urban consumer preference, shopping behavior, and preferences, about 48% of Chinese people purchased frozen pork. Adding further, 70% of the Chinese population believe that food safety is more important hence such positive qualities are expected to boost the industry.
Analysis of Ease of Doing Business
With the rising of disposal income and growing urbanization, China is expected to become a key driver in the purchasing power of frozen food products. China is a good marketplace for the rapid expansion of food outlets along with reduced tariff barriers on frozen food imports by the government. However, the price of frozen food products from multinational brands are still very high in China but sophisticated health-conscious Chinese consumers are ready to spend their money on the quality provided.
Non-vegetarian frozen products also represent the major market revenue share owing to the growing preference and influence of western food service. This trend is encouraged by the expansion of the western restaurant and this is expected to raise the demand for imported seafood such as sushi, platters, lobsters, and oysters
Market Entry: The Strategy
SELLERS AND DISTRIBUTORS
The choice of seller and distributor is essential for every type of business even for frozen food. You can not take the first one that happens or just the right one because it requires a lower percentage. The choice must be made with criteria, through analysis and detailed information to create a winning strategy in which questions like who are my competitors or how this distributor can help me, have structured answers.
Segmentation by Distribution Channel
Supermarkets and hypermarkets are expected to enjoy maximum profit margin representing big opportunities to new international players to establish their business and local players can further grow their market with in-store promotions and on-site demonstration.
Offline distribution is still the leading distribution channel in China and is expected to show decent growth in the future. The online distribution channel is also very important to extend your business in China and is expected to grow in the future owing to an aging population that prefers to buy online instead of visiting stores.
Our experience and our contacts with distributors are right for you if you want to have a successful business.
You can also read our Strategic Guide to Export Food Brands in China
E-REPUTATION AND BRANDING
One of the characteristics of the web is that every content leaves a lasting trace over time. On the web, everything that is published on websites and web pages can be found through search engines, even after many years. For this, it is necessary to always know which contents are associated with their reputation and from which sources they come.
Today more than ever, web reputation is a fundamental parameter for the success of brands, companies, and professionals. Chinese users, in fact, before buying a service or product, when planning a trip, or to orient themselves to the vote during the elections, check ALWAYS the feedback on the network.
It is also important to have a strong image that is constantly promoted in a positive way, so as to find the best distributors in the market in China.
SOCIAL MEDIA AND KOL
If you’re not on WeChat you can not do anything in China. This is even more true for a brand that wants to expand into the Chinese market. In China, social media is used by two-thirds of people, and it is through them that they seek information, share and make the word of mouth if a product is to their taste. In this case, our agency helps you to open an account on the right social media, such as WeChat and Weibo, making it a profit tool for your business.
But it is not over here, in fact, one of the best strategies to increase your audience is the use of an Influencers, to the accuracy of KOL. These virtual celebrities have a great impact on the purchasing power of Chinese users, signing the profile The most suitable KOL is an ace in the sleeve.
TRADE SHOWS AND EXHIBITIONS
The digital communication must be accompanied by the real, human one made of contacts. Our suggestion is to participate in fairs and exhibitions in China when your brand image has strong bases.
In this kind of shows, you can integrate any kind of communication. Our advice? Always show your QR code at these fairs because the Chinese live together with the digital world.
Manufacturers with the good market competition are coming up with new marketing strategies, new technology, and product diversification. This new trend of introducing new technologies, more creative food innovations, and better ingredients are expected to improve the positive effect on the Chinese frozen food industry for the long term. An increase in the number of consumers favoring frozen food products, is expected to boost the import.
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