China Joins Junk Food Bandwagon

If you are manufacturer of processed foods, buckle up. World’s most populous nation reckoning you to sell you’re your processed foods here. Rising incomes, busy homes, (DINK) Double Income No Kids mean here too, that Chinese have to rely more on packaged foods.

Call it stress of the modern times or rising popularity of the processed foods. With graph of Chinese economy rising, Chinese also have no option but to ‘outsource’ their foof requirements like rest in the world.

China had been a conservative country in food habits and has largely been shunning junk foods or packaged foods. If China is to be busy capturing world markets of textiles or furniture or every thing else, they would also need some body to take care of their appetite. Rising incomes would mean Chinese consumers were demanding more processed foods, which is likely to fuel double-digit growth in the industry for the foreseeable future, Industry sources are estimating.

Grocery stores and restaurants in China are doing brisk business and reporting higher sales as Chinese consumers are buying more processed foods. China and its 1.3 billion population consumes about half of the world’s pork, one-third of rice, 19 percent of ice cream and poultry and 12 percent of beef. Currently, less than one-third of food in China is processed, compared to about 80 percent in Western nations.

The market for processed foods is growing in China especially in urban areas where higher concentrations of wealth and busier lifestyles have led many to seek out more convenient alternatives to cooking with fresh ingredients.

Packaged foods, especially baked goods, dairy products, oils and fats, baby food and ice cream have all shown ’exceptional’ growth. Fast-food chains such as Yum Brands Inc.’s KFC and McDonald’s are also expanding in China to meet consumer demand.

In coming years the industry would focus on shipments of corn and wheat goods, dairy products, food additives and seasoning essentials, the report said.