Non-GMO food in China: Key market research findings
- Growing concern about safety of GM food products drives market growth
- Cereals and grains account for a majority of the market’s revenue
- Key vendors – China Beijing Organic and Beyond, Epermarket, Noah Beijing Agricultural Development, Tony’s Farm, and TooToo Organic Farm
Technavio’s market research analysts predict the non-GMO food market in China to grow at a CAGR of around 21% between 2016 and 2020. The growth of the market is augmented by the increasing awareness and concern about the safety of GM food products. Organizations such as Greenpeace have publicly protested against the government for its stand on GM crops. Furthermore, several food scandals occurred fairly recently in the country, which has compelled consumers to question the benefits of using technology in the grocery sector. Such factors are discouraging the adoption of GM food products by consumers in the country and triggering a transition towards non-GMO and other organic products.
The new market research report from Technavio presents a breakdown and analysis of the non-GMO food segments based on the product.
“China is currently experiencing a shift in its food consumption patterns. Preferences within the country are moving from traditional raw and fresh cooked food toward packaged and processed food. The traditional diet of vegetables, rice, and noodles, along with a portion of meat is now giving way to more westernized food, which includes more meat, more packaged food, and other ready-to-eat meals containing additives, artificial flavors, and other chemicals. The entry of packaged food vendors like Kraft, Nestle, and PepsiCo is triggering an increase in the sale of westernized food products through convenience stores. Snacks like granola bars, cereal, and pasta are also becoming extremely popular in the country,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the cereals and grains segment will account for more than 33% of the overall market revenue to become the dominant shareholder in the non-GMO food market in China. In the organic grains segment, rice is the most widely consumed. Other than rice, wheat and pulses are also two of the most preferred food products in the country. The GMO-free Australian wheat variety, barley, and maize are other foods products that are in high demand.
The key vendors in the non-GMO food market in China include China Beijing Organic and Beyond, Epermarket, Noah Beijing Agricultural Development, Tony’s Farm, and TooToo Organic Farm. The non-GMO food market in China is subject to rapidly changing consumer demands, preferences, and spending patterns, which has intensified the competition among market players. The growth of vendors is dependent on several factors, such as government initiatives and focus on the availability of non-GMO food products across the country. To sustain themselves in the intensely competitive landscape, vendors need to focus on geographical expansion and revive the demand for non-GMO food in major Chinese cities to achieve sustained growth. Vendors can also increase the profitability by adopting efficient production and cultivation techniques, which can, in turn, help in minimizing the overall production costs, as well as mitigating environment-related risks.
A more detailed analysis is available in the Technavio report, Non-GMO Food Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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