GlobalMark

How Can Firms Benefit from Food Export to China?

As purchasing power of Chinese people increased, consumer expectations have changed. Today, Chinese food market had high demand for versatility. In this market, southeast coastal part of the country has high commercial activities. Transportation activities, especially sea transportation, is supporting commercial activities in this region.

Based on this trade volume, main consumption areas of Chinese market are around Southeast coast. Studies show that Shanghai is listed number 1 in 2017 exported food sales distribution. Zhejiang and other important commercial province Guangdong are second and third provinces in this list.

Northern Provinces of China such as Liaoning has important potential for food export market. North and west regions that have limited food products had high potential for food exporters.

China Food Export Market with Numbers

Between 2005-2017, China has exported $48 billion worth food products from total of 192 countries. This market with 1.4 billion potential consumers has grown 17.6% in the last decade. These numbers are promising for Turkish exporters as well as other exporters.

When 2017 figures are considered, top 10 provinces for food export are as follows:

  1. Guangdong
  2. Shanghai
  3. Tianjin
  4. Shandong
  5. Liaoning
  6. Jiangsu
  7. Fujian
  8. Zhejiang
  9. Beijing
  10. Guangxi

While Guangdong has approximately $13 billion export volume Shanghai is the second province in the list with $12.15 billion. This two provinces with high population density plays an important role in Chinese economy. Capital Beijing has high potential with $1 billion export volume.

Factors That Increase Food Export

Globalisation is changing everyday habits of Chinese consumers. As China took steps to expand economy policies, consumer can now access to wide range of product groups. Additionally, increased disposable income eliminates malnourishment and food access problems.

As consumers shift to vegetable based consumption, vegetable demand in the country is increasing. Additionally, researchers show that meat consumption has significantly increased in the last decade. For the last five years, China has been one of the top vegetable importers around the world. 64% of soy bean consumed in the country are exported from different corners of the world. When all these factors are considered, China has great potential in terms of food export.

How is China feeding its population of 1.4 billion?

(Sources: Guangdong(China) Imported Food Association https://chinapower.csis.org/china-food-security/ )

Photo by ja ma on Unsplash