Edible Oils & Fats in China: A Market Analysis

REPORT COVERAGE

This report covers the market for edible oils in the People’s Republic of China. The report covers the following sectors:

• Margarine
• Olive Oil
• Vegetable and Seed Oil
• Butter:

KEY REPORT FEATURES

This recently updated report includes:

• The total value and volume of the edible oils and fats market up to 2010;
• The value and volume of edible oils and fats sales by sector and subsector up to 2010;
• Edible oils and fats average product pricing up to 2010;
• Volume & value forecast the edible oils and fats market in China up to 2015;
• The edible oils and fats market background and current issues;
• Key edible oils and fats company profiles;
• Overview of China’s demographics and macroeconomics.

Executive Summary

Perhaps not the most alluring of consumer product sectors, the edible oils market is however representative of how much the consumer products market in China has changed in such a short space of time. Until recently, edible oils were controlled by government monopoly, and rationing of edible oils to poorer households was still being done within the last 15 years.

Now the market is dominated by the leading modern grocery chains in terms of distribution, and although brands have emerged, these are already being challenged by the emergence of retailer private label brands.

Edible oils have not grown as fast as the other food retail sectors. Total retail food sales grew by 165.6% between 2003 and 2010, while total current value retail sales of edible oils only grew 54.7%, and 25.8% in volume terms. Total volume consumption, including food processing and HoReCa, went up by 41.2% over the same period.

Edible oils are therefore not growing as fast as more profitable and expensive processed food products, but they remain core to the shopping basket – so much so that indiscreet special price offers, or even threats of price rises for cooking oils, can lead to rioting in the aisles. Fluctuations in edible oil prices are politically important because they directly affect wider food prices, and food prices have an history in China of creating social unrest.

Where the market is relatively interesting is in the growth of value-added products, such as flavoured blended oils, imported olive oil and other new products to the market, such as various nut oils.

Consumer interest in cooking and new food products continues to increase, and as long as this is the case, the demand for new and better cooking oils will increase. Relatively weak historical growth does not mean any real diminished significance for this sector, and its future potential still holds some interesting opportunities.

Contents

INTRODUCTION

Report Coverage
Abbreviations Used
Other Relevant Reports from Access Asia
China Retail Quarterly

1 CHINA’S EDIBLE OILS & FATS MARKET

1.1 Overview
1.2 China’s Total Edible Oils & Fats Market
  1.2.1 Total Food Market: Food & Non-food Sales
    Table 1.1 TOTAL CURRENT VALUE RETAIL SALES BY FOOD AND NON-FOOD, 2003-2010
  1.2.2 Total Food Market: Food/Non-food Sales Split
    Table 1.2 % BREAKDOWN OF SALES BY FOOD AND NON-FOOD, 2003-2010
  1.2.3 Total Food Market: Urban and Rural Split
    Table 1.3 TOTAL CURRENT VALUE RETAIL SALES BY FOOD & NON-FOOD, 2003-2010
  1.2.4 Total Food Market: The Trends
    Table 1.4 CURRENT VALUE RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2003-2010
1.3 China’s Edible Oils & Fats Market
  1.3.1 Edible Oils & Fats Market: Total Market Size
    Figure 1.1: Total Edible Oils & Fats Consumption Channel Sales Growth, 2003-2009
    Table 1.5 TOTAL MARKET (RETAIL AND HORECA) FOR EDIBLE OILS & FATS IN VOLUME & CURRENT AND CONSTANT VALUE TERMS IN CHINA, 2003-2010
  1.3.2 Edible Oils & Fats Market: Per Capita Consumption
    Table 1.6 PER CAPITA CONSUMER MARKET FOR EDIBLE OILS & FATS IN CHINA, 2003-2010
  1.3.3 Edible Oils & Fats Market: Food Market Significance
    Table 1.7 EDIBLE OILS & FATS SALES AS A PROPORTION OF TOTAL FOOD EXPENDITURE IN CHINA, 2003-2009
1.4 Consumer Market Sector Breakdown
  1.4.1 Consumer Market Sector Breakdown: Sector Volumes
    Figure 1.2: Total Edible Oils & Fats Consumer Market Volume Sales Growth, 2003-2010
    Table 1.8 TOTAL CONSUMER MARKET FOR EDIBLE OILS & FATS BY SECTOR IN VOLUME TERMS IN CHINA, 2003-2010
  1.4.2 Consumer Market Sector Breakdown: Sector Shares
    Table 1.9 % BREAKDOWN OF THE TOTAL CONSUMER MARKET FOR EDIBLE OILS & FATS BY SECTOR IN VOLUME TERMS IN CHINA, 2003-2010
1.5 Prices
  1.5.1 Prices: Retail Price Indices
    Table 1.10 AVERAGE INCOME ANNUAL GROWTH BY SECTOR, 2006-2009
    Table 1.11 RETAIL PRICE INDICES BY BROAD SECTOR, 2000-2010
  1.5.2 Prices: Average Unit Values
    Table 1.12 AVERAGE UNIT RETAIL PRICES OF EDIBLE OILS &FATS PRODUCTS BY SECTOR IN CHINA, 2003-2010
  1.5.3 Prices: Selected Product Prices
    Table 1.13A RETAIL PRICES OF SELECTED EDIBLE OIL PRODUCTS, AUCHAN, OCTOBER 2010
    Table 1.13B RETAIL PRICES OF SELECTED EDIBLE OIL PRODUCTS, AUCHAN, OCTOBER 2010
    Table 1.13C RETAIL PRICES OF SELECTED EDIBLE OIL PRODUCTS, AUCHAN, OCTOBER 2010
    Table 1.14 RETAIL PRICES OF SELECTED EDIBLE OIL PRODUCTS, BEIJING HOME DELIVERY, OCTOBER 2010
1.6 Outlook
  1.6.1 Outlook: Forecast Trends
  1.14.2 Outlook: Total Market Size In Value Terms
    Table 1.15 FORECAST TOTAL MARKET (RETAIL AND HORECA) FOR EDIBLE OILS & FATS IN VOLUME & CONSTANT VALUE TERMS IN CHINA, 2011-2015
    Table 1.16 FORECAST PER CAPITA CONSUMER MARKET FOR EDIBLE OILS & FATS IN CHINA, 2011-2015
    Table 1.17 FORECAST % BREAKDOWN OF TOTAL CONSUMER MARKET VOLUME FOR EDIBLE OILS & FATS IN CHINA BY BROAD SECTOR, 2011-2015
1.15 Current Issues
  1.15.1 Current Issues: Supermarket-farmer Cooperation
  1.15.2 Current Issues: Rural Retailing Development Project
    Table 1.18 STANDARDS FOR COUNTRYSIDE STORES IN VILLAGES
    Table 1.19 STANDARDS FOR COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS
    Table 1.20 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN VILLAGES, MARCH 2010
    Table 1.21 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS, MARCH 2010
    Table 1.22 RURAL RETAILING PROJECT DISTRIBUTION CENTRES, MARCH 2010
    Table 1.23 RURAL RETAIL DEVELOPMENT PROJECT TOTAL NUMBER OF PARTICIPATING COMPANIES, 2005-2008
    Table 1.24 RURAL RETAIL DEVELOPMENT PROJECT COMPANY STRUCTURE, 2007
    Table 1.25 RURAL CONVENIENCE STORE NUMBERS BY LOCATION, 2005-2009
    Table 1.26 RURAL CONVENIENCE FLOORSPACE BY LOCATION, 2005-2009
    Table 1.27 RURAL CONVENIENCE TOTAL RETAIL SALES BY LOCATION, 2005-2009
    Table 1.28 RURAL CONVENIENCE AVERAGE OUTLET SALES BY LOCATION, 2005-2009
  1.15.3 Current Issues: Linking the Chill Chain
  1.15.4 Current Issues: Private Label
    Table 1.29 CHINA TOP-100 RETAILER’S TOTAL SALES AND PRIVATE LABEL SALES COMPARED, 2005-2009
  1.15.5 Current Issues: Food Safety
  1.15.6 Current Issues: Dangerous Food: Eating poison
  1.15.7 Current Issues: Fat Food: Facing an Obesity Epidemic
  1.15.8 Current Issues: Genetically Modified (GM) Food
  1.15.9 Current Issues: Going Green: The positive approach
  1.15.10 Current Issues: Organic Farming
  1.15.11 Current Issues: Packaging: Dealing with massive amounts of waste
  1.15.12 Current Issues: Vegetarianism: Consumers vote with their feet

2 SOURCES OF SUPPLY

2.1 Domestic Production
    Table 2.1 VEGETABLE OIL PRODUCTION VOLUME BY TYPE, 2003-2010
2.2 Imports
    Table 2.2 HS CODE DESCRIPTION
    Table 2.3 CHINA EDIBLE OILS & FATS IMPORT VOLUME, 2002-2009
    Table 2.4 CHINA EDIBLE OILS & FATS IMPORT VALUE, 2002-2009
2.3 Exports
    Table 2.5 HS CODE DESCRIPTION
    Table 2.6 CHINA EDIBLE OILS & FATS EXPORT VOLUME, 2002-2009
    Table 2.7 CHINA EDIBLE OILS & FATS EXPORT VALUE, 2002-2009
2.4 Average Trade Values
    Table 2.8 HS CODE DESCRIPTION
    Table 2.9 CHINA EDIBLE OILS & FATS AVERAGE IMPORT PRICES, 2002-2009
    Table 2.10 CHINA EDIBLE OILS & FATS AVERAGE EXPORT PRICES, 2002-2009

3 COMPANY PROFILES

3.1 China Agri-Industries Holdings Limited
  3.1.1 China Agri-Industries Holdings: Company Details
  3.1.2 China Agri-Industries Holdings: Company Background
    Table 3.1 CHINA AGRI-INDUSTRIES HOLDINGS LTD.: SEGMENT REVENUES & RESULTS, 2006-2010*
    Table 1.2 CHINA AGRI-INDUSTRIES HOLDINGS LTD.: PROFIT MARGINS, 2006-2010*
    Table 1.3 CHINA AGRI-INDUSTRIES HOLDINGS LTD.: OILSEEDS PROCESSING CAPACITY & VOLUME & VALUE SOLD, 2006-2010*
  3.1.3 China Agri-Industries Holdings: Financial Results
    Table 3.4 CHINA AGRI-INDUSTRIES HOLDINGS LTD.: FINANCIAL RESULTS, 2006-2010*
3.2 China Corn Oil Company Limited
  3.2.1 China Corn Oil: Company Details
  3.2.2 China Corn Oil: Company Background
    Table 3.5 CHINA CORN OIL CO. LTD.: SEGMENT REVENUES & GROSS PROFIT MARGINS, 2006-2010*
    Table 3.6 CHINA CORN OIL CO. LTD.: SALES VOLUME & AVERAGE SELLING PRICE, 2006-2010*
    Table 1.7 CHINA CORN OIL CO., LTD.: DISTRIBUTION NETWORK, 2006-2010*
    Table 1.8 CHINA CORN OIL CO., LTD.: DOMESTIC/EXPORT SALES SPLIT, 2006-2010*
  3.2.3 China Corn Oil: Company Financials
    Table 3.9 CHINA CORN OIL CO., LTD.: FINANCIAL RESULTS, 2006-2010*
3.3 China Foods Limited
  3.3.1 China Foods: Company Details
  3.3.2 China Foods: Company Background
    Table 3.10 CHINA FOODS LTD.: SEGMENT REVENUES & RESULTS, 2006-2010*
    Table 1.11 CHINA FOODS LTD.: PROFIT MARGINS OF KITCHEN FOODS BUSINESS & SALES VOLUME, 2005-2010*
  3.3.3 China Foods: Company Financials
    Table 3.12 CHINA FOODS LTD.: FINANCIAL RESULTS, 2006-2010*
3.4 Dongling Grain & Oil Company Limited
  3.4.1 Dongling Grain & Oil: Company Details
  3.4.2 Dongling Grain & Oil: Company Background
    Table 1.13 DONGLING GRAIN & OIL CO., LTD.: VOLUME SOLD, 2009-2010*
    Table 1.14 DONGLING GRAIN & OIL CO., LTD.: SEGMENT REVENUES & GROSS PROFIT MARGINS, 2008-2010*
  3.4.3 Dongling Grain & Oil: Company Financials
    Table 1.15 DONGLING GRAIN & OIL CO., LTD.: FINANCIAL RESULTS, 2008-2010*
3.5 Shandong Luhua Group Co., Ltd.
  3.5.1 Shandong Luhua: Company Details
  3.5.2 Shandong Luhua: Company Background
  3.5.3 Shandong Luhua: Company Financials
    Table 1.16 SHANDONG LUHUA GROUP CO., LTD.: FINANCIAL RESULTS, 2006-2010*
3.6 Wilmar International Limited
  3.6.1 Wilmar International: Company Details
  3.6.2 Wilmar International: China Activities
    Table 3.17 WILMAR INTERNATIONAL LTD.: REVENUE & PRETAX PROFIT BY SEGMENT, 2007-2010
    Table 3.18 WILMAR INTERNATIONAL LTD.: SALES VOLUME, 2006-2010*
  3.6.3 Wilmar International: Company Financials
    Table 3.19 WILMAR INTERNATIONAL LTD.: FINANCIAL RESULTS, 2006-2010*

4 CONTACTS

4.1 Trade Organisations
  China National Association of Grain Sector
  China Chamber of Commerce of Import & Export of Foodstuff, Native Produce & Animal By-Products
  Chinese Cereals and Oil Association
  China National Vegetable Oil Association
4.2 Government Departments
  Ministry of Agriculture
  Ministry of Commerce (MOFCOM)
  State Administration of Grain

APPENDIX: MARKET BACKGROUND

A.1 Fast Facts
A.2 Population
  A.2.1 Population: By Age Group & Gender
    Table A.1 POPULATION BY AGE GROUP & GENDER, 2003–2009*
  A.2.2 Population: By Province
    Table A.2 POPULATION BY PROVINCE, 2003–2009*
A.3 Exchange Rates
  A.3.1 Exchange Rates: China
    Table A.4 AVERAGE ANNUAL RENMINBI EXCHANGE RATES AGAINST A VARIETY OF CURRENCIES, 2002–2010
  A.3.2 Exchange Rates: Hong Kong
    Table A.5 AVERAGE ANNUAL HONG KONG DOLLAR EXCHANGE RATES AGAINST THE UNITED STATES DOLLAR AND RENMINBI, 2002–2010 Skip to top