Restrictive Requirements for Imports
  • The total market size for organic packaged food and beverages in China in 2017 is US$2,839.2mn. The country ranks as the 4th largest market in the world by value.
  • Per capita spending on organic packaged foods and beverages in China is US$2.050, which is the 32nd largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Inner Mongolia Yili, which maintains 29.1% of total sales. It is followed by China Mengniu Dairy Co and Inner Mongolia Shengmu.
  • Organic packaged food and beverages in China will see strong year-on-year growth of close to 20% in 2018. This is higher than the rest of the Asia Pacific region, which will experience greater than 10% year-on-year growth in 2018.
  • China maintains a market size for organic packaged food and beverages of US$2,839.2mn in 2017, which is 7.0% of global category sales.
  • Within the Asia Pacific region, China is the leader in terms of total value sales of organic packaged foods and beverages.
  • China will experience robust forecast growth of sales of organic packaged food and beverages, at 14.3% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in China in 2017 is US$2,839.2mn. The country ranks as the 4th largest market in the world by value.
  • Sales growth is due in large part to the overall health and wellness trend in China and consumers’ rising incomes but is constrained by consumer skepticism about organic products’ value over conventional offerings.
  • Organic standard milk dominates the landscape.

Market Trends

Competitive Landscape

  • China's dairy giant, Inner Mongolia Yili is the market leader with 29.1% value share in 2017.
  • International companies such as US-based Abbot Laboratories and Bellamy’s Australia have increased their market shares in recent years, largely at the expensive of local Chinese firms.

Prospects and Growth Opportunity

  • As Chinese consumers’ incomes continue to rise, organic food and beverage sales value is projected to continue growing in coming years, albeit at a slower pace as the category matures.
  • Manufacturers are expected to expand their product ranges to attract increasingly affluent and health-conscious consumers.
  • Organic milk sales will continue to grow as consumers trade up to organic products, particularly for their children.
  • Tea is projected to remain the fastest-growing organic beverage category through 2021.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • China’s real GDP growth rates have been decelerating in recent years after a prolonged stretch of rapid growth.
  • The economy continues to be sustained mainly by a flood of cheap credit supplied by state-run banks.
  • A high level of inequality, especially between urban and rural areas, will remain a key challenge to consumer goods businesses.

Population demographics:

  • In 2017 China’s population was almost 1.4 billion.
  • The fertility rate is presently 1.8 births per female. China abandoned the one-child policy in 2015, and fertility rates are expected to gradually increase to 1.9 births per female through 2022.
  • The country is rapidly urbanizing. More than half of all Chinese live in urban areas, and up to 70% are expected to be urbanites by 2030.

Income & expenditure:

  • The income of urban households is, on average, several times higher than that of rural households, but the gap has narrowed in recent years.
  • For the period 2017-2030, total consumer expenditure will grow at an average annual rate of 5.5% in real terms.
  • Disposable income per capita totaled RMB37,000 (US$5,474) in 2017.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

   92,552.3

   97,933.3

 101,795.9

 107,631.5

 112,197.9

 117,279.6

 122,729.3

5.2%

4.5%

Organic packaged food and beverages consumption

USD million

     1,534.4

     1,933.3

     2,351.2

     2,839.2

     3,315.1

     3,831.6

     4,381.2

22.8%

15.6%

Organic packaged food consumption

USD million

     1,510.5

     1,904.0

     2,315.5

     2,796.6

     3,265.7

     3,775.4

     4,318.3

22.8%

15.6%

Organic beverages consumption

USD million

          23.9

          29.4

          35.7

          42.6

          49.4

          56.2

          62.9

21.2%

13.9%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

     1,360.7

     1,367.8

     1,374.6

     1,382.7

     1,391.8

     1,401.1

     1,409.6

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

Average number of children per household

children

            0.7

            0.6

            0.6

            0.6

            0.6

            0.6

            0.6

GDP per capita

USD per capita

     7,002.0

     7,453.2

     8,003.3

     8,850.3

     9,374.1

     9,897.4

   10,428.3

Consumer expenditure per capita (US$)

USD per capita

     2,597.4

     2,834.3

     3,104.9

     3,363.1

     3,581.6

     3,816.6

     4,052.2

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

        594.2

        641.0

        698.1

        749.1

        791.1

        836.7

        881.6

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Shanghai

           25.0

Top cities by population (2017)

2

Beijing

           22.8

Top cities by population (2017)

3

Tianjin

           16.8

Top cities by population (2017)

4

Guangzhou

           13.5

Top cities by population (2017)

5

Shenzhen

           11.8

Top grocery retailers by sales (2017)

1

RT Mart

 -

Top grocery retailers by sales (2017)

2

Walmart Supercenter

 -

Top grocery retailers by sales (2017)

3

CR Vanguard

 -

Top grocery retailers by sales (2017)

4

Yonghui

 -

Top grocery retailers by sales (2017)

5

Carrefour

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Cherry Tomatoes

3.0

Grapes

873.0

Peas

3,101.0

Coffee Roast

645.0

2

Coffee Roast

382.0

Lemons

407.0

Cherries

2,218.0

Oranges

414.0

3

Oranges

782.0

Coffee Roast

49.0

Oranges

1,312.0

Lemons

385.0

4

Grapes

7.0

Oranges

3,194.0

Apples

1,160.0

Tomato Sauce

359.0

5

Lemons

50.0

Tomato Sauce

30.0

Grapes

793.0

Grapes

352.0

Total

5,653.0

7,847.0

9,309.0

2,893.0

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Standardization Administration of China (SAC) and the General Administration on Quality Supervision, Inspection and Quarantine (AQSIQ).

Agency(s) Contact Information: 

Standardization Administration of China
No. 9 Madian East Road
Haidian District
CN-Beijing 100088
Tel: +86 10 8226 2622
Fax: +86 10 8226 0660
E-mail: sac@sac.gov.cn
Web

General Administration of Quality Supervision, Inspection and Quarantine
No. 9, Madian East Road
Haidian District
Beijing100088
People's Republic of China
Web
 

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

National Standards for Organic Products, GB/T 19630-2005 were updated in 2011 to National Standards for Organic Products, GB/T19630-2011.

GB/T19630-2011 consists of 4 parts:
GB/T19630.1 Organic Products: Production 
GB/T19630.2 Organic Products: Processing 
GB/T19630.3 Organic Products: Labeling and Marketing 
GB/T19630.4 Organic Products: Management System 
 

 

Date of Implementation: 

2005

Regulation and/or Standard Scope: 

The Chinese standard covers the general specifications and requirements for organic production, processing, transport, storage and packaging of crops, edible fungi, wild plants, livestock and poultry, aquatic products, textiles, and apiary.

Imported Products Requirements

Imported Products: 

China does not allow equivalence agreements with other countries. US producers, even though they are USDA certified, will not be allowed to use the Chinese term for organic unless they receive Chinese certification. See the reports in Additional Information below for more detailed information about meeting China's requirements for imported products.

China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) plans to require importers of certain products to a review overseas exporters and producing enterprises. See the GAIN report.

Certification and Accreditation

Certification: 

United States Department of Agriculture Foreign Agriculture Service UNOFFICIAL translation of certification rules .pdf (2012)

There are local and foreign certifiers available.
Two major Chinese certifying organizations: China Organic Food Certification Center (COFCC) and Organic Food Development Center (OFDC).
Joint-venture companies: BCS (Changsha); ECOCERT (Beijing); Japan Organic and Natural Foods Association (JONA) and Overseas Merchandise Inspection Company

Requirements for Foreign Certification Body (CB):

- Regulation on Certification and Accreditation (Decree No. 390 of the State Council of PRC) Requirements for all CBs, plus extra requirements for foreign CBs
- Requirements on approval of CBs (RMB 3 M, 10 full-time staff...)
- Foreign CBs must be accredited in its own country
- Foreign CBs must have organic experience over three years

Accreditation Method: 

Government

Accreditation: 

Certification and Accreditation Administration of China (CNCA)

China does not allow foreign assessment bodies, such as USDA, to accredit certifiers.

Additional Information

Additional Information: 

Food importers must register every four years. See GAIN Reports below for more information.

USDA's report on the 2015 Food Safety Law
USDA's GAIN Report Exporter Guide to China (2017)
USDA's GAIN Report Consumer Study on China's Imported Food Products (2018)
USDA's GAIN Report Annual Retail Foods Report (2017)
USDA's GAIN Report Organic Certification Issues Update from East China
USDA's GAIN Report AQSIQ to Require Importers to Review Overseas Food Producers 
USDA's GAIN Report Food Processing Ingredients Annual (2017)
USDA's GAIN Report Retail Increasing Change and Competition but Strong Growth Presents Plenty of Opportunities for U.S. Food Exports (2017)

Hong Kong does not have a law regulating organic food products.  U.S. organic products can be sold in Hong Kong with the USDA organic logo. See the Global Organic Trade Guide's page for Hong Kong for more information about this Special Administrative Region of the People's Republic of China.

In August 2016, US shipments are subject to China's requirements designed to halt the spread of Zika-bearing mosquitos

Definitions

Review definitions of terminology included in this website.