China's Food and Beverage Industry
...duction, efficient distribution channels and advanced technologies are the imperatives. Key issues to be aware of for foreign players · Food and Beverage market outlook in China post WTO · Government plans for the food industry · Mergers and acquisition trends in the Food and Beverage industry · Integrated branding and pricing strategies · Local sourcing and logistics · Channel convergence · Food & beverage retailing · Food safety concerns Market research outcome (Quoted from AC Nielsen) Fastest-growing categories include Yogurt and Yogurt Drinks at nearly 40%, Instant Coffee at 37% and Baby Cereals, Milk Powder, Infant Milk Formula and Household Cleaners, all at more than 20%. Rapid Growth in Many Categories Among 27 food/beverage and non-food categories in China, ACNielsen has identified 23 with positive growth last year in value terms, with 13 achieving double-digit expansion. Yogurt/Yogurt Drink tops the fastest-growing category list with a 39% increase, followed by Instant Coffee (37%) and Baby Cereal (23%). (See Table 1) The only categories that experienced negative growth in 2001 were Shoe Polish, Carbonated Soft Drinks (CSD) and Sports Drinks, Batteries and Hair Styling Aids. (See Table 2) Top categories come from the F&B industry, with CSD products topping the list of all categories in terms of sales value, followed by shampoo, skin moisturiser, instant noodles and laundry detergent. Changing Market Structure The growth among major FMCG categories was largely fueled by the development of the modern trade, which contributed to more than 80% of total sales in...