Supermarkets, Hypermarkets and Independent Small Grocers to Remain Top Distribution Channels for Packaged Food in China in 2012, Says Euromonitor

20 Dec 2012 • by Natalie Aster

In 2012, retail value sales of packaged food are expected to grow faster than in 2011. Although the Chinese economy faced some serious difficulties and pressures of economic slowdown, consumers still expressed high demand for packaged food. The rapid growth rate was due to the demand for packaged food, as well as rising unit prices over the year. Manufacturers raised retail selling prices or reduced promotions to increase their profit margins, or to cover the increasing raw materials, labour and transportation costs.

Increasing health awareness speeds up the development of healthy packaged food with increasing health awareness amongst Chinese consumers, health and wellness packaged food was highly welcomed. On the one hand, manufacturers introduced products with functional ingredients, natural healthy products and products with lower levels of fat and sugar. On the other hand, consumer education through advertising and marketing activities highlighted the benefits of these products. Thus, health and wellness packaged food recorded much faster growth than standard packaged food.

According to the report “Packaged Food in China” by Euromonitor International Supermarkets, hypermarkets and independent small grocers are expected to remain the leading distribution channels for packaged food in China during 2012, whilst the distribution share of supermarkets and hypermarkets is also set to increase. Both supermarkets and hypermarkets developed very rapidly in the review period, due to the comfortable and convenient shopping experience. Consumers were also attracted by the various discounts and special promotions, as well as programmes such as loyalty points. Furthermore, many packaged food products, such as frozen processed food, are mostly found in supermarket and hypermarket chains, as they require special freezers.

Report Details:

Packaged Food in China
Published: December, 2012
Pages: 336
Price: US$ 6,500.00

More information can be found in the report “Packaged Food in China” by Euromonitor International.

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