Foodsectornews.com - China Open its Doors to Food Processing Industry

China Open its Doors to Food Processing Industry

Monday, 15 January 2007

With 1.3 billion people growing at 10million a year and a rising economy, China is the largest food consumer. The food processing industry,

that generated revenue over US $157.7 Billion in 2004, is growing rapidly. Firm economic growth and fast urbanization has resulted in increased disposable incomes, thereby, increasing the demand of quality processed food by Chinese consumers, both at homes and restaurants. China is churning out profits for food processing export-oriented units. Despite a fast growth, China's food processing market is still underdeveloped. With rising demand for high quality American constituents, it will continue to witness double-range growth in the future.

China's annual food consumption is mind-boggling. World's 51% pork, 33% rice, 19% ice-cream, 19% poultry, 12% beef is consumed by China. Though only 30% of the consumed food in China is "packaged" in comparison to 80% of western market, the processed food market is expanding, mainly in busy urban areas because of convenience, healthier choices, variation and quality.

"Food Processing Market in China (2005)", a recent market research report by RNCOS puts forward that, since 1980, China is the fastest-growing economy. As the rest of the world is on a decline, China is growing and is anticipated to maintain a GDP annual growth rate at 7% for next 5 years.