Times are changing, and so are consumer tastes. It is a challenge for food and beverage brands to obtain consumers' attention and retain consumers' interest. Understanding the newest trends can help brands stay on top of changing consumer habits and develop products that genuinely meet consumers' needs.
The social isolation measures, quarantines and economic shutdown brought by the COVID-19 epidemic have affected of consumers' food and beverage consumption and evolved new consumption habits and attitudes. Consumers are pursuing greater convenience. Simultaneously, the epidemic has prompted them to pay more attention to health and seek long-term fitness through dieting. At a glance 2021 China Food Consumption and Innovation Trends
In the third quarter, China’s economy grew by 4.9%, the best performance among the world’s major economies. It’s expected to grow even higher in the 2020 Q4. The recovery of consumer spending is the key to the country’s sustained economy rebounding. Mintel expects that China's total consumer spending will return to its pre-epidemic level in 2021 and will continue to grow at a compound annual growth rate of 7.3% from 2021 to 2024
Double 11 Shopping Festival and the third CIIE
In 2020, Chinese people embraced the annual Double 11 Shopping Spree and the third CIIE (China International Import Expo). The total turnover of the 2020 Tmall Double 11 Shopping Festival reached RMB 498.2 billion (From 1.11-11.11). Tmall Global delivered a Year-on-Year sales growth of 47.3%, with more than 31,000 participating overseas brands. The food and beverage industry has showed stellar performance, ranking among the TOP7 categories by total online sales. Despite the epidemic, the third CIIE accumulated US$72.62 billion's worth of tentative deals, an increase of 2.1% compared with that of last year. The Food and Agricultural Products Pavilion had the largest number of exhibitors, with 1,264 companies from 93 countries joining the Expo. Live-streaming was one of the biggest highlights of these two events. As Chinese consumers are increasingly open to quality imported products, China will further create a supportive import policy environment.
In November, 15 countries, namely, 10 ASEAN members, together with China, Japan, South Korea, Australia, and New Zealand, officially signed a landmark Regional Comprehensive Economic Partnership (RCEP) Agreement to make it the world’s largest free trade agreement. Once this Agreement comes into effect, over 90% of cargo trade among the 15 APAC countries will eventually enjoy zero tariffs. Frozen pork, pet food and its feed additives, beer and spirits are four categories we believe will have a broader market in China with faster growth rates.