Since the outbreak of Covid-19, there have been several changes in consumer behaviour and preferences in the Chinese food and beverage market.
It is important to know that Chinese customers tend to do a lot of research on products before buying them. But what are the main trends?
The health revolution Although Chinese consumers have long been on a trajectory towards healthier diets, the Covid-19 pandemic caused attention to health to skyrocket, especially among the Chinese youth segment.
The ‘she’ economy
In recent years, China has seen the emergence of the “female” economy. With higher levels of education and income, the more than 400 million Chinese women in their 20s and 60s are increasing their consumer power in the food and beverage market.
Milk alternatives Plant-based dairy alternatives have taken centre stage in China, as Chinese consumers become more familiar with products such as oat milk, almond milk and rice milk.
Meat alternatives
In the last decade, China has become a major meat consumer: the Chinese consume 28% of the world’s meat supply and half of the world’s pork.
However, plant-based meat alternatives are beginning to make an appearance, slowly moving from being a niche phenomenon to a more accepted lifestyle choice among Chinese consumers.
The obsession with coffee and tea
Tea has always been a staple among Chinese consumers, but coffee is expanding rapidly, growing at a rate of 15 per cent a year, compared to the global growth rate of 2.2 per cent. While coffee consumption is increasing, tea consumption has not lagged behind. Demand for tea has continued to rise, with new flavours and ways of drinking tea becoming popular thanks to the expansion of tea and beverage chains such as Hey Tea and Gong Cha in China. In 2021, the sales value of domestic tea consumption reached RMB300 billion.
Chinese consumers are increasingly looking for new experiences and flavours in the food and beverage products they buy. As a result, brand loyalty to food brands has declined and new product development has become essential to stay ahead of the competition.
This is especially true as the food and beverage market in China becomes increasingly saturated, with both foreign and domestic brands competing for the attention of the local consumer.
Before entering the market, brands must ensure that they understand the Chinese consumers they want to appeal to and know the trends they can leverage to capture attention and interest.
Source: China-Britain Business Focus, https://focus.cbbc.org