Frozen food in China on fast track, study predicts
Sales of frozen foods in China will reach RMB 188.5 billion ($30.7 billion) in 2015, according to th…Sales of frozen foods in China will reach RMB 188.5 billion ($30.7 billion) in 2015, according to the China Frozen Food Industry Report 2012-2015, just published by Research & Markets Ltd., Dublin, Ireland.
Along with economic progression and the rise in urbanization in China, especially the growing number of urban residents as leading consumers of frozen food provides good opportunities for the development of the industry, with industrial sales soaring from RMB 45.7 billion ($7.4 billion) in 2007 to RMB 110.5 billion ($18 billion) in 2011, presenting a compound annual growth rate (CAGR) of nearly 24.7%.
As the pace of life of urban residents accelerates in China, the consumption ratio and variety of frozen food in China will increase substantially – at this point, the report says, it is still limited mainly refers to the rice and flour categories. At the same time there will be a gradual extension of cold chain business mode towards the second- and third-line cities, where there is still a vast opportunity for the development of the Chinese frozen food industry in the future.
Even as far as frozen rice and flour foods are concerned, there is still room for greater variety. But with the mass market for consumer goods, innovation is easy and there is low barrier for access into the industry. In dumplings, for example, San Quan, Synear and Long Feng cover all bases with low, medium and high-end products, targeting all consumer groups, while Wanchai positions all its dumplings at the high-end, with the richest flavor among all brands and to appeal to the diverse tastes of white-collar workers. By contrast, local regional brand products are focused on only a few varieties, the study says, "an insufficient product line."
