China Organic Food Market Report 2023: Sector to Reach $30.88 Billion By 2028 at a 13.3% CAGR
DUBLIN, May 26, 2023 /PRNewswire/ — The “China Organic Food Market, Size, Forecast 2023-2028, Industry Trends, Growth, Impact of Inflation, Opportunity Company Analysis” report has been added to ResearchAndMarkets.com’s offering.
China Organic Food Market Size will reach US$ 30.88 Billion by 2028 compared to US$ 14.57 Billion in 2022, as per 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. Looking at the evolution of the market, organic food in China has huge potential in international and domestic markets.
Most Chinese consumers are price sensitive and look for value when buying organic food. China’s demand for Organic Food has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, imports & exports, consumer consumption and capital investment for over two decades.
China Organic Food Industry will grow at a CAGR of 13.34% during 2022-2028
Organic farming continues to show a rapid development world-wide. China is one of the world’s largest agriculture producers and consumer of the agriculture products. Agriculture is one of the most important economic sectors in China, which employs over 295 million Chinese farm workers. Despite the agricultural output is the largest in the world, less than 7% of the world land area can be cultivated, which fed over 18% of the world population, in 2023.
China ranks the first in worldwide agricultural producer of rice, and principal sources of wheat, corn, tobacco, soybeans, peanuts, cotton, potatoes, sorghum, peanuts, tea, dairy, millet, barley, oilseed, pork and fish which provide China with a small portion of its foreign trade revenue. The main factors driving the purchase of organic products, also during the pandemic, reflect the attention of Chinese consumers towards physical health, food safety and its benefits on the maintenance of a healthy physical condition. More than 2.95 million hectares of land were farmed organically at the end of 2022 in China. Moreover, a series of food scandals occurred in China over the last years, emphasized the shift of interest of Chinese consumers towards foreign imported products, even at higher prices, better satisfy consumers’ needs in terms of quality and safety.
Organic Food Production Models in China: the System Production is the main Force
In China, most organic foods are cultivated by organized systems, not like other countries where organic foods are supplied by individuals. There are three main organic food production models in China: the first one is that big company leases land from farmer and pays them. The second model is that under the permission of local governments, big companies sign an organic food production contract with farmers. The third one is the organic producer association. Farmers set up an association by themselves to conduct large-scale organic food production.
Organic Dairy Industry in China has been growing steadily in recent years, driven by increasing demand for Healthy and Safe Food Products
Based on China Organic Food segment, organic dairy accounts for the majority of the market share. China is becoming one of the largest organic dairy consumers in the world. The increasing demand for organic dairy products in China can be attributed to several factors, including the rising awareness about the use of fertilizers, pesticides, and bovine growth hormone in conventional dairy farming practices, which has led consumers to opt for healthier and organic products.
These products are known to have higher levels of beneficial nutrients such as vitamins, omega-3 fatty acids, antioxidants, and conjugated linoleic acid (CLA). Additionally, the growth of the organic dairy market in China is being driven by factors such as rapid urbanization, rising disposable incomes, and concerns about food safety due to widespread food adulteration practices in the country.
China’s organic fresh products industry, which includes fruits, vegetables, meat, poultry, and seafood, has experienced significant growth in recent years due to increasing demand for healthy and safe food products, as well as rising awareness of environmental sustainability and animal welfare concerns among consumers. Organic fruits and vegetables are particularly popular, accounting for over 70% of the market share.
Consumers are willing to pay a premium for organic products that are free from harmful pesticides, herbicides, and synthetic fertilizers, driven by health consciousness, food safety, and environmental sustainability concerns. The Chinese government has been promoting the industry’s development by providing subsidies for organic farming and certification and encouraging sustainable agriculture practices.
Chinese Supermarkets’ Organic Food Market is expected to grow as Chinese Consumers Continue to demand Healthy, Safe, and Sustainable Food Products
On the basic of Distribution, China Organic Food industry has been divided into Hypermarkets, Supermarkets, Independent Small Grocers, Internet Retailing, Direct Selling, Forecourt Retailers and Others Grocery Retailers. In China, the market for organic food products in supermarkets has experienced significant growth in recent years, fueled by consumers’ heightened health awareness, rising disposable incomes, and growing concerns over the environmental and health impacts of conventional food production methods. Leading supermarkets in the country, including Walmart, Carrefour, and Alibaba’sHema Fresh, have responded to the increasing demand for organic products by expanding their offerings.
China is by far the largest Internet Retailing market in the world. Thus, online retail and O2O models are the most efficient sales channels for organic food in China. As the largest consumer market for organic packaged foods and beverages and the fastest growing organic food market in Asia, China’s organic market offers many opportunities for foreign B2B investors. Geographically, the consumption of organic products is mainly concentrated within the high-tier cities, therefore big cities as Peking, Shanghai, Guangzhou, identifying the upper class as the main destination target. Moreover, online grocery shopping platforms like JD.com and Taobao have also entered the market, making organic food products more convenient and accessible to consumers.
Segments – Market Breakup from 6 viewpoints
1. Organic Baby Formula
2. Organic Baby Food
3. Organic Dairy
4. Organic Oils & Fats
5. Organic Beverages
6. Organic Fresh Products
Distribution Models – Market Breakup from 7 viewpoints
3. Independent Small Grocers
4. Internet Retailing
5. Direct Selling
6. Forecourt Retailers
7. Others Grocery Retailers
All companies have been covered from 3 viewpoints
- Recent Developments
1. China Mengniu Dairy Company Limited
2. Abbot China
3. Ausnutria Dairy (China) Company Ltd
4. TINGYI (CAYMAN ISLANDS) HOLDING CORP
5. WH Group Limited
Key Topics Covered:
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
5. PESTLE Analysis
6. China Organic Food Market Analysis
7. Market Share – China Organic Food Analysis
8. Segments – China Organic Food Market
9. Distribution Models – China Organic Food Market
10. Mergers and Acquisitions
11. Company Analysis
For more information about this report visit https://www.researchandmarkets.com/r/acd3tc
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