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TRANSCRIPT
Meat Consumption Trend in China
Speaker: Celio CellaCEO & Founder of YUMTOWN |MR. MEAT
2017 CHINA MARKET
Overview on China meat market
Meat Consumption Trend in China
The changes of purchasing habits in China
Key Sales Channels for Imported Premium Meat
CONTENTS OUTLINE:
Challenges and Opportunities
PART 1
Overview on demandIn Chinese Meat Market
Chinese Economy keeps
increasingOutstanding increase contributed by the
Middle and high class
Part 1: Overview on demand in China meat market
--- Background
Part 1: Market demand overview
--- Consumption and Demands
3
Beef consumption
increasing
2
Low production efficiency
in China domestic industry
Pork consuming
stable
1
Part 1: Market demand overview
--- Government Policy
Labeling, traceability, safety and quality, etc.
Restrict China mainland feeding and slaughtering industry.
11 free trade zone51 import ports
To build stronger transport and trade links between Asia and Europe
3
“One Belt One Road” New Silk Road
foreign policy and trade initiative:
2
Free trade zone and import ports
for meat increased
New Food
Safety Law
1
PART 2
Consumption trends
in China Meat Market
Target people and their potential demands:
A. Middle and high class people --- a good life
B. Family concentrated consume --- giving the best to the next generation / aged people
C. Younger people --- believe in the theory “you are what you eat”
Location: mostly living in Tier 1 cities
(Beijing, Shanghai, Guangzhou, Shenzhen)
Part 2: Consumption trends
--- Target consumers
What is imported meat means to these people?
• Safe & Tasty
• A good present
• Having a good life
In China, a decent gift is a must to show how respectful you are to who receive the
gift. Imported food products in China are better packed with relatively high price,
which makes it a perfect choice of gift
Part 2: Consumption trends
--- Target consumers
Part 2: Consumption trends
--- Target consumers focuses on:
BEFOREChinese customer used to
focus on:
HIGH QUALITY
NOWChinese customer
focus on:
BIG VOLUME
Chinese customers start to care about :
Part 2: Consumption trends
--- Target consumers focus:
“Premium, organic, healthy, safe traceability, animal warfare
Good service , great experience ………”
ME MYSELF
PART 3
Changes in purchasing habit in China
• Second child and aging population
• traditional ways of buying meat E-commerce
• cheap food Healthy ,safe tasty food
• Quality quantity
• The “fashion” of beef consumption is spreading
Part 3: Changes in purchasing habit in China
PART 4
Key sales channels
Part 4: Key channels for premium meat products
--- Catering & Food service, restaurants
1
80%
Middle class Lunch out
41% do so over 4 times per week
26% of these meals
They choose beef and other
premium meat
60%
Eat out for dinner
once or twice per week
02
Part 4: Key channels for premium meat products
--- Catering
China catering sector is the major user of
import premium meat.
Although catering growth has been slowing in
recent years, particularly in the fine-dining
segment in part due to the impact of the
government’s anti-corruption campaign, it is
still one of the fastest growing sectors in the context of global catering.
More Western-style restaurants, including steakhouses are opening in China, exposing consumers to premium import meat
WESTERN RESTAURANTS
Consumer preferences are
changing
As China evolves from being an emerging market with limited options into a more mature,
higher-income market with sophisticated dining consumers.
There is increasing competition from local brands that better understand their target consumer and the environment.
Part 4: Key channels for premium meat products
--- Catering
3
Part 4: Key channels for high end meat products
--- Retail Channels
China’s retail sector is highly
fragmented, with the Top 10
retailers accounting for less
than 5% of the market.
Part 4: Key channels for premium meat
--- Retail Channels
Rapid urbanization in China will
remain a major driving force behind
the continued spread of modern retail in the country
In Tier 1 cities, modern retail
segment has replaced many
wet markets.
Online grocery shopping growing
significantly
Modern grocery retail sales
increase slower
Investments in cold chain logistics
( both government and the
private sector)
Part 4: Key channels for premium meat
--- Retail Channels
PART 5
Challenges and Opportunities
Part 5: Challenges and Opportunities
--- Opportunities
I. Food safety problems in China: too many issues exposed on meat production in China,
making the consumers trust more in imported meat products
II. Imported products are having a very good reputation among Chinese market
Part 5: Challenges and Opportunities
--- Opportunities
Still lack of control on the smuggling meat
Part 5: Challenges and Opportunities
--- Challenges
Acceptance/Differentiation of premium
remains unknown;
Acceptance
?
Mark J . Smith
CEO & Founder
SPEAKER :CEO & FOUNDER MR. MEAT
CELIO CELLA
Mark J . Smith
CEO & Founder
To Create Value for our customers and partners
• Since 1994
• Studied Chinese Market for over 20 years