What’s trending in China’s F&B industry?

Are you interested in the China F&B industry? From an investment perspective, it's a sector to watch now.

An ongoing consumption upgrade is being seen across China as more consumers seek a better quality of life. This in turn is driving new trends and benefitting brands that focus on health, convenience, and innovation.

Consumers are opting for premium food and beverage products that are healthier, fresher, or more innovative. Natural mineral water, less- or zero-sugar teas, and nutritional drinks are now the rising stars in the soft beverage market. Even alcoholic beverages such as premium baijiu and premium beer are expected to see superior growth this year as they are seen as natural, healthy, and of quality.

Consumers are also opting for convenience with online grocers. The pandemic has accelerated the adoption of online platforms like Taobao, Alibaba, and Pinduoduo, making e-commerce a vital part of consumer shopping behaviour today; not only for fashion or electronics, but even perishables like seafood and vegetables. The e-grocery market is expected to grow in the future.

To capture the attention of consumers, brands are also innovating with packaging and their marketing strategies. Thanks to the rich data online on consumer preferences and behaviour, companies are becoming more adept in appealing to them with live streaming and direct-to-consumer sales methods.

Seize opportunities in China’s F&B industry

And these are just some of the new trends coming up in the market. There’s actually a lot of untapped potential in China’s F&B industry, if you know the right trends to hop on.

A tip just for you: keep an eye out for companies that offer premium, fresh, healthy and innovative products, as well as those that utilise e-commerce platforms and innovative channels for marketing.

At Eastspring Investments, we take advantage of the latest trends to boost your portfolio so your investments remain ahead of the curve. If you would like to know more about these trends please read our thought leadership article at China: 3 trends driving the food and beverage industry

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