Growth in Western-style Chilled Processed Meats14 January 2013
CHINA - A Euromonitor report published in November has indicated continued strong growth in the Chinese chilled processed foods sector, with chilled meats dominating the sector, according to Nick McIlroy from the Shanghai Office of Bord Bia - Irish Food Board.
Retail sales in the chilled food category increased by 10 per cent in current value terms in 2012, with chilled processed meats registering 10.8 per cent growth in value year-on-year from RMB79.7 billion (€9.74 billion) in 2011 to RMB 87.8 billion (€10.7 billion) in 2012.
One trend of particular note is the shift in consumption away from traditional Chinese processed chilled meats such as Chinese sausages, which have been conceding market share to more Western-style products such as ham and bacon.
In the five year period from 2007 to 2012, the combined market share of chilled ham and bacon increased from 29 per cent to 32.2 per cent, while traditional Chinese sausages fell from 34 per cent market share to 31.5 per cent in the same period.
While the chilled processed meat market is still fragmented, increased urbanisation continues to drive the shift away from traditional retail outlets to supermarkets and hypermarkets with adequate cold supply-chain facilities.
Euromonitor forecasts steady retail growth of 11 per cent annually from 2012 to 2017 in the chilled processed meat sector, while growth in food service is expected to reach 13 per cent annually over the same period.
With pork representing some 65 per cent of total meat and poultry consumed in China, and a potential lag in China’s drive for pork self-sufficiency, the report heralds good news for pork exporters engaged in the Chinese market.