The Chinese Bakery & Cereal Sector is set to Witness Robust Growth to 2017
10 October 2013
Bakery & Cereal products are slowly becoming of greater importance in Chinese cuisine
The Chinese Bakery & Cereal sector will grow by almost US$15 billion between 2012 and 2017. Whilst not traditionally part of the Chinese diet, products like breakfast cereals, cakes and cookies have become increasingly popular with consumers over the past decade. Structural changes to China’s economy to further stimulate domestic demand and consumer spending is now being implemented by the new Premier, Li Keqiang.
Consumption patterns in China are becoming more westernised
As China becomes increasingly globalised, consumer incomes and living standards are rising, especially amongst middle-class consumers. The consumption patterns of the middle class and Chinese youth have shifted towards a preference for westernised bread and baked products. The urban population is forecast to reach 800 million by the end of the decade, which will further drive demand for bakery products, sales volumes of which will exceed 12 billion kg by 2017.
International manufacturers are set to play an increasing role, as consumers turn to foreign products
The future is bright for the Bakery and Cereals sector in China. The already robust growth of the market, which has seen per-capita retail consumption almost double in the past decade, reached 7 kg per capita in 2012. Canadean’s data indicates that in the period up to 2017, the market will increase at a CAGR of 9.20% in value terms and 6.85% in volume terms. As the economic changes initiated by the country’s new leadership allow increased foreign investment, American and European companies will find it easier to enter the Chinese market. This will be supported by consumers who trust the safety and health connected to foreign products, following a number of domestic food safety scandals in recent years.
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