Contents:

INTRODUCTION Report Coverage China’s Retail Statistics: A Cautionary Note The Problems With Chinese Retail Data? Other Access Asia Reports of Possible Interest Abbreviations Used 1 CHINA’S CHILLED FOOD MARKET 1.1 Overview 1.2 China’s Total Food & Beverage Market 1.2.1 Total Food Market: Food & Non-food Sales Table 1.1 TOTAL CURRENT VALUE RETAIL SALES BY FOOD AND NON-FOOD, 2003-2009* 1.2.2 Total Food Market: Food/Non-food Split Table 1.2 % BREAKDOWN OF SALES BY FOOD AND NON-FOOD, 2003-2009* 1.2.3 Total Food Market: Urban and Rural Split Table 1.3 TOTAL CURRENT VALUE RETAIL SALES BY FOOD & NON-FOOD, 2003-2009* 1.2.4 Total Food Market: The Trends Figure 1.1: Total Volume Growth in Retail Sales of Selected Food Products in China, 2003-2009 Figure 1.2: Per Capita Volume & Growth of Retail Sales of Selected Food Products in China, 2000/2006 Table 1.4 CURRENT VALUE RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2003-2009* 1.2.5 Total Food Market: Urban Value Trends Table 1.5 CURRENT VALUE URBAN RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2003-2009* 1.2.6 Total Food Market: Rural Value Trends Table 1.6 CURRENT VALUE RURAL RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2003-2009* 1.3 China’s Chilled Foods Market 1.3.1 The Retail Chilled Foods Market: Total Value Market Size Potential and Existing Food Consumers Table 1.7 NUMBER OF OWNERS OF FRIDGE-FREEZERS PER 100 URBAN HOUSEHOLDS, 2003-2007 Table 1.8 NUMBER OF OWNERS OF FRIDGE-FREEZERS PER 100 RURAL HOUSEHOLDS, 2003-2007 Table 1.9 PROPORTION RURAL FRIDGE-OWNING HOUSEHOLDS AS A % OF PROPORTION URBAN FRIDGE-OWNING HOUSEHOLDS, 2003-2007 Table 1.10 RURAL APPLIANCE REBATE SCHEME TOP THREE MOST POPULAR ITEMS, UP TO 22 MAY 2009 Overall Consumer Confidence Table 1.11 TOTAL CURRENT AND CONSTANT VALUE RETAIL MARKET FOR TOTAL CHILLED FOOD IN CHINA, 2003-2009* Table 1.12 TOTAL CURRENT US$ VALUE RETAIL MARKET FOR TOTAL CHILLED FOOD IN CHINA, 2003-2009* 1.3.2 The Retail Chilled Foods Market: Total Volume Market Size Table 1.13 TOTAL RETAIL MARKET VOLUME FOR CHILLED FOOD IN CHINA, 2003-2009* 1.3.3 The Retail Chilled Foods Market: Total Retail Food Market Significance Table 1.14 CHILLED FOOD RETAIL SALES AS A PROPORTION OF TOTAL CURRENT VALUE RETAIL FOOD SALES IN CHINA, 2003-2009* 1.4 Regional Retail Markets 1.4.1 Regional Retail Markets: Provincial Values Table 1.15 CHILLED FOOD CURRENT RETAIL SALES VALUE BY PROVINCE IN CHINA, 2003-2009* Table 1.16 % BREAKDOWN AND PERIOD GROWTH OF CHILLED FOOD CURRENT RETAIL SALES VALUE BY PROVINCE IN CHINA, 2003-2009* 1.4.2 Regional Retail Markets: Provincial Per Capita Spend Table 1.17 PER CAPITA RETAIL SPENDING ON CHILLED FOOD BY PROVINCE IN CHINA, 2003-2009* 1.4.3 Regional Retail Markets: Provincial Volumes Table 1.18 CHILLED FOOD RETAIL MARKET VOLUME BY PROVINCE IN CHINA, 2003-2009* Table 1.19 % BREAKDOWN AND PERIOD GROWTH OF CHILLED FOOD CURRENT RETAIL SALES VOLUME BY PROVINCE IN CHINA, 2003-2009* 1.4.4 Regional Retail Markets: Provincial Volume Shares & Growth Table 1.20 PER CAPITA RETAIL VOLUME CONSUMPTION OF CHILLED FOOD BY PROVINCE IN CHINA, 2003-2009* 1.5 Retail Market Breakdown 1.5.1 Retail Market Breakdown: Sector Values Table 1.21 CHILLED FOOD CURRENT VALUE RETAIL SALES BY SECTOR IN CHINA, 2003-2009* 1.5.2 Retail Market Breakdown: Sector Volumes Table 1.22 CHILLED FOOD VOLUME RETAIL SALES BY SECTOR IN CHINA, 2003-2009* 1.5.3 Retail Market Breakdown: Sector Shares Table 1.23 % BREAKDOWN OF CHILLED FOOD CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.5.4 Retail Market Breakdown: Sector Growth Rates Table 1.24 % ANNUAL GROWTH FOR CHILLED FOOD CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.6 Retail Sector Breakdowns 1.6.1 Retail Sector Breakdowns: Processed Fish Value & Volume Sales Table 1.25 CHILLED PROCESSED FISH CURRENT VALUE RETAIL SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Breakdown Table 1.26 % BREAKDOWN OF CHILLED PROCESSED FISH CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Annual Growth Table 1.27 % ANNUAL GROWTH FOR CHILLED FOOD CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.6.2 Retail Sector Breakdowns: Chilled Meats Value & Volume Sales Table 1.28 CHILLED MEATS CURRENT VALUE RETAIL SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Breakdown Table 1.29 % BREAKDOWN OF CHILLED MEATS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Annual Growth Table 1.30 % ANNUAL GROWTH FOR CHILLED MEATS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.6.3 Retail Sector Breakdowns: Ready Meals Value & Volume Sales Table 1.31 CHILLED READY MEALS CURRENT VALUE RETAIL SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Breakdown Table 1.32 % BREAKDOWN OF CHILLED READY MEALS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Annual Growth Table 1.33 % ANNUAL GROWTH FOR CHILLED READY MEALS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.6.4 Retail Sector Breakdowns: Chilled Desserts Value & Volume Sales Table 1.34 CHILLED DESSERTS CURRENT VALUE RETAIL SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Breakdown Table 1.35 % BREAKDOWN OF CHILLED DESSERTS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* Value & Volume % Annual Growth Table 1.36 % ANNUAL GROWTH FOR CHILLED DESSERTS CURRENT RETAIL VALUE & VOLUME SALES BY SECTOR IN CHINA, 2003-2009* 1.7 Urban & Rural Retail Markets 1.7.1 Urban & Rural Retail Markets: Total Sales Table 1.37 CURRENT VALUE RETAIL CHILLED FOOD MARKET BY URBAN & RURAL SALES IN CHINA, 2003-2009* Table 1.38 CHILLED FOOD MARKET URBAN & RURAL RETAIL VALUE SALES % ANNUAL GROWTH IN CHINA, 2003-2009* 1.8 Market Shares 1.8.1 Market Shares: A Cautionary Word 1.8.2 Market Shares: Meat Industry Revenue Shares Table 1.39 LEADING COMPANY PROCESSED MEAT INDUSTRY REVENUE MARKET SHARES, 2004–2008 1.8.3 Market Shares: Total Dairy Market Value Shares Table 1.40 LEADING NATIONAL DAIRY MARKET COMPANY SHARES BY SALES REVENUE, 2002-2008 1.9 Prices 1.9.1 Prices: Retail Price Indices Table 1.41 AVERAGE INCOME ANNUAL GROWTH BY SECTOR, 2005–2008 Table 1.42 RETAIL PRICE INDICES BY BROAD SECTOR, 2001–2008 1.9.3 Prices: Average Unit Values Table 1.43 AVERAGE UNIT RETAIL PRICES OF CHILLED FOODS BY SECTOR IN CHINA, 2003-2009* 1.9.4 Prices: Average Regional Unit Prices Table 1.44 AVERAGE RETAIL PRICES OF CHILLED FOODS BY PROVINCE IN CHINA (PROVINCES RANKED BY PERIOD PRICE GROWTH RATES), 2002–2008 1.9.5 Prices: Store Checks Table 1.45 RETAIL PRICES OF SELECTED CHILLED FOODS, AUGUST 2009 1.10 Outlook 1.10.1 Outlook: Forecast Trends 1.10.2 Outlook: Forecast Sector Values & Volumes Table 1.46 FORECAST CONSTANT 2009 VALUE & VOLUME RETAIL SALES OF CHILLED FOODS BY SECTOR IN CHINA, 2010-2014 1.10.3 Outlook: Forecast Sector Breakdown Table 1.47 FORECAST % VALUE & VOLUME BREAKDOWN OF CHILLED FOODS RETAIL SALES BY SECTOR IN CHIN, 2010-2014 1.10.4 Outlook: Forecast Sector Growth Table 1.48 FORECAST ANNUAL % VALUE & VOLUME GROWTH OF CHILLED FOODS RETAIL SALES BY SECTOR IN CHIN, 2010-2014 1.11 Current Issues 1.11.1 Current Issues: Rural Retailing Development Project Table 1.49 STANDARDS FOR COUNTRYSIDE STORES IN VILLAGES Table 1.50 STANDARDS FOR COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS Table 1.51 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN VILLAGES, APRIL 2009 Table 1.52 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS, APRIL 2009 Table 1.53 RURAL RETAILING PROJECT DISTRIBUTION CENTRES, APRIL 2009 Table 1.54 RURAL RETAIL DEVELOPMENT PROJECT TOTAL NUMBER OF PARTICIPATING COMPANIES, 2005-2008 Table 1.55 RURAL RETAIL DEVELOPMENT PROJECT COMPANY STRUCTURE, 2007 1.11.2 Current Issues: Linking the Chill Chain 1.11.3 Current Issues: Private Label Table 1.56 CHINA TOP-100 RETAILER’S TOTAL SALES AND PRIVATE LABEL SALES COMPARED, 2005-2009* 1.11.4 Current Issues: Food Safety 1.11.5 Current Issues: Dangerous Food: Eating poison 1.11.6 Current Issues: Fat Food: Facing an Obesity Epidemic 1.11.7 Current Issues: Genetically Modified (GM) Food 1.11.8 Current Issues: Going Green/Organic 1.11.9 Current Issues: Organic Farming 1.11.10 Current Issues: Packaging Waste 1.11.11 Current Issues: Vegetarianism: Consumers vote with their feet 1.11.12 Current Issues: Avian Flu 2 MARKETING & DISTRIBUTION 2.1 Marketing & Advertising 2.1.1 Marketing & Advertising: Trends Conventional Media Advertising Table 2.1 ADVERTISING EXPENDITURE IN CHINA, 2004-2008 Online Advertising Table 2.2 ONLINE ADVERTISING EXPENDITURE IN CHINA, 2004-2008 2.1.2 Marketing & Advertising: Leading Advertised Product Categories Table 2.3 TOP 10 ADVERTISING CATEGORIES IN CHINA, 2007 2.1.3 Marketing & Advertising: Leading Advertised Brands Table 2.4 TOP 10 ADVERTISED BRANDS IN CHINA BY ADSPEND, 2007-2008 2.1.4 Marketing & Advertising: Leading Advertisers Table 2.5 CHINA’S TOP TEN ADVERTISERS, 2004-2006 Table 2.6 CHINA’S TOP TEN ADVERTISERS, 2006-2007 2.1.5 Marketing & Advertising: The Prime-time Advertising Auction Table 2.7 PRIME-TIME ADVERTISING AUCTION ON CHINA’S CCTV, 2000-2009 2.1.6 Marketing & Advertising: Brand Preferences Choice Factors in China Age & Location Table 2.8 BRAND PREFERENCES IN TERMS OF AGE GROUPS & LOCATIONS IN CHINA, 2007 Quality Versus Image Table 2.9 FACTORS DETERMINING BRAND CHOICES IN CHINA, 2007 Local Versus Foreign Table 2.10 BRAND PREFERENCES IN CHINA, 2007 “Chameleon” Brands Table 2.11 TOP CHAMELEON BRANDS IN CHINA, 2008 2.1.7 Marketing and Advertising in China: Brand Equity 2.1.8 Marketing & Advertising: Emerging Local Brands Table 2.12 CHINA’S MOST VALUABLE BRANDS, 2008/2009 2.1.9 Marketing & Advertising: Pricing Issues Table 2.13 CONSUMERS WHO TRADE UP OR DOWN BY INCOME SEGMENTS, 2007 Table 2.14 CONSUMERS WHO TRADE UP OR DOWN BY CATEGORIES, 2007 2.1.10 Marketing & Advertising: Online Sales Table 2.15 PER CAPITA ONLINE SHOPPING VALUE, 2003-2008 Table 2.16 SITES PREFERRED BY ONLINE SHOPPERS, 2008 Table 2.17 TOP 10 RETAIL ITEMS ON TAOBAO.COM, 2008 Table 2.18 TOP ONLINE SHOPPING TRANSACTION BY REGION, 2007 Table 2.19 TOP REASONS FOR NOT SHOPPING ONLINE, 2007 2.2 Consumers 2.2.1 Consumer Profile: Broad Consumer Trends 2.2.2 Consumers: Profile of Chilled Food Consumers 2.3 Wholesale Distribution 2.3.2 Wholesaling: Meat Wholesaling 2.3.3 Wholesale Distribution: The Role of the Wet Markets Table 2.22 WET MARKET DEVELOPMENT & SIGNIFICANCE TO OVERALL FOOD EXPENDITURE, 2001-2007 2.4 Retail Distribution Table 2.23 % BREAKDOWN OF CHILLED FOODS RETAIL SALES BY OUTLET TYPE IN CHINA, 2003-2009 3 SWOT ANALYSIS 3.1 Strengths 3.2 Weaknesses 3.3 Opportunities 3.4 Threats 4 LEADING COMPANY PROFILES 4.1 Pacific Andes International Holdings 4.1.1 Pacific Andes: Company Details 4.1.2 Pacific Andes: Company Background 4.1.3 Pacific Andes: Financial Summary Table 4.1 PACIFIC ANDES: FINANCIAL RESULTS, 2005-2009* 4.2 Beijing Sanyuan Foods Co., Ltd. 4.2.1 Beijing Sanyuan Foods: Company Details 4.2.2 Beijing Sanyuan Foods: Company Background & China Activities 4.2.3 Beijing Sanyuan Foods: Financial Summary Table 4.2 BEIJING SANYUAN FOODS CO., LTD.: FINANCIAL RESULTS, 2004-2008* 4.3 China Yurun Food Industry Group Co., Ltd. 4.3.1 China Yurun: Company Details 4.3.2 China Yurun: Company Background Table 4.3 CHINA YURUN FOOD INDUSTRY GROUP CO., LTD.: SUBSIDIARIES, 2008 4.3.3 China Yurun: Financial Results Table 4.4 CHINA YURUN FOOD INDUSTRY GROUP CO., LTD.: FINANCIAL RESULTS, 2004-2008 4.4 DaChan Group 4.4.1 DaChan Group: Company Details 4.4.2 DaChan Group: Company Background 4.4.3 Dachan Group: Financial Results Table 4.5 DACHAN GROUP CO., LTD.: FINANCIAL RESULTS, 2004-2008 4.5 Groupe Danone 4.5.1 Danone: Company Details 4.5.2 Danone: Company Background 4.5.3 Danone: China Operations 4.5.4 Groupe Danone: Financial Results Table 4.6 GROUPE DANONE: FINANCIAL RESULTS, 2006-2009* 4.6 Henan Shuanghui (Shineway) Food Co., Ltd. 4.6.1 Henan Shuanghui (Shineway) Food: Company Details 4.6.2 Henan Shuanghui (Shineway) Food: Company Background 4.6.3 Henan Shuanghui (Shineway) Food: Financial Results Table 4.7 HENAN SHUANGHUI (SHINEWAY) INVESTMENT & DEVELOPMENT CO., LTD.: FINANCIAL RESULTS, 2004-2008 4.7 Hormel 4.7.1 Hormel: Company Details 4.7.2 Hormel: Company Background 4.7.3 Hormel: China Operations 4.7.4 Hormel: Financial Results Table 4.8 HORMEL: FINANCIAL RESULTS, 2005-2008* 4.8 Inner Mongolia Mengniu Dairy Co., Ltd. 4.8.1 Inner Mongolia Mengniu Dairy: Company Details 4.8.2 Inner Mongolia Mengniu Dairy: Company Background 4.8.3 Inner Mongolia Mengniu Dairy: Financial Summary Table 4.9 INNER MONGOLIA MENGNIU DAIRY CO., LTD.: FINANCIAL RESULTS, 2004-2008* 4.9 Inner Mongolia Yili Industrial Co., Ltd. 4.9.1 Inner Mongolia Yili Industrial: Company Details 4.9.2 Inner Mongolia Yili Industrial: Company Background 4.9.3 Inner Mongolia Yili Industrial: Financial Summary Table 4.10 INNER MONGOLIA YILI INDUSTRIAL CO. LTD: FINANCIAL RESULTS, 2004-2008* 4.10 Nestlé 4.10.1 Nestlé: Company Details 4.10.2 Nestlé: China Operations Table 4.11 NESTLÉ: PRINCIPLE OPERATING COMPANIES IN CHINA 4.10.3 Nestlé: Financial Results Table 4.12 NESTLÉ: FINANCIAL RESULTS, 2004-2008* 4.11 Shanghai Guangming (Bright) Dairy & Food Co. Ltd. 4.11.1 Shanghai Guangming: Company Details 4.11.2 Shanghai Guangming: Company History 4.11.3 Shanghai Guangming: Structural Background 4.11.4 Shanghai Guangming: Dairy Activities 4.11.5 Shanghai Guangming: Financial Results Table 4.13 SHANGHAI GUANGMING (BRIGHT) DAIRY & FOOD CO. LTD: FINANCIAL RESULTS, 2004-2008 4.12 Shanghai Dajiang 4.12.1 Shanghai Dajiang: Company Details 4.12.2 Shanghai Dajiang: Company Background 4.12.3 Shanghai Dajiang: Financial Results Table 4.14 SHANGHAI DAJIANG: FINANCIAL RESULTS, 2004-2008 4.13 Zhucheng Delisi Group 4.13.1 Zhucheng Delisi Group: Company Details 4.13.2 Zhucheng Delisi Group: Company Background 5 CONTACTS 5.1 Trade Organisations 5.1.1 China National Cereals, Oils & Foodstuffs Import & Export Corporation 5.1.2 All-China Federation of Industry & Commerce 5.1.3 China Canned Food Industry Association 5.2 Government Departments 5.2.1 Agriculture Ministry 5.2.2 Ministry of Commerce 5.2.3 Ministry of Health 6 EXHIBITIONS & TRADE FAIRS 6.1 International FoodTec China 6.2 China FoodTech 6.3 China International Food Expo 6.4 China Refrigeration & Frozen Food Processing & Packaging APPENDIX: MARKET BACKGROUND A.1 Fast Facts A.2 Regions of China Map A.1 CHINA: PROVINCES AND MUNICIPALITIES A.3 Demographics A.3.1 Demographics: Total Population Table A.1 TOTAL POPULATION, 2002–2008 A.3.2 Demographics: Population by Location Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 2002–2008 Table A.3 POPULATION % BREAKDOWN BY URBAN-RURAL DIVIDE, 2002–2008 A.3.3 Demographics: Population by Province Table A.4 POPULATION BY PROVINCE, 2002–2008 A.3.4 Demographics: Population Density by Province Table A.5 POPULATION DENSITY BY PROVINCE, 2005-2008 A.3.5 Demographics: Population Concentration Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2008 A.3.6 Demographics: Population by Gender Table A.6 TOTAL POPULATION BY GENDER & % BREAKDOWN, 2002–2008 A.3.7 Demographics: Population by Age Group Table A.7 POPULATION BY AGE GROUP, 2002–2008 Table A.8 % BREAKDOWN OF POPULATION BY AGE GROUP, 2002–2008 A.4 Consumer Attitudes A.4.1 Consumer Attitudes: Overview A.4.2 Consumer Attitudes: Response to Political Change A.4.2 Consumer Attitudes: Response to Economic Change A.4.3 Consumer Attitudes: Changes in Lifestyle Livelihood Individual loans Housing Possessions Travel Entertainment Health and Fitness Purchasing Influences Taboos A.5 Consumer Wealth A.5.1 Consumer Wealth: GDP and Cost of Living China’s New Middle Class Table A.9 MIDDLE AND UPPER INCOME HOUSEHOLDS IN CHINA, 1995/2000/2005/2010/2015 Table A.10 TOTAL CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS, 2005/2010/2015 Table A.11 CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS & % OF TOTAL HOUSEHOLDS, 1995/2000/2005/2010/2015 Confident Shoppers Table A.12 GDP AND COST OF LIVING INDEX, 2002–2008 A.5.2 Consumer Wealth: Provincial GDP Table A.13 GDP BY PROVINCE, 2002–2008 A.5.3 Consumer Wealth: GDP Growth by Province Table A.14 GDP GROWTH BY PROVINCE, 2002–2008 A.5.4 Consumer Wealth: GDP Per Capita by Province Table A.15 PER CAPITA GDP BY PROVINCE, 2002–2008 A.5.5 Consumer Wealth: Concentration of Wealth by Province Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2008 A.5.6 Consumer Wealth: The Major Cities Table A.16 LEADING CITIES KEY ECONOMIC INDICATORS, 2007 A.6 Households A.6.1 Households: Overview of Household Conditions A.6.2 Households: Total Households by Size Table A.17 NUMBER OF HOUSEHOLDS BY SIZE, 2002–2008 A.6.3 Households: Total households by Urban/Rural Split Table A.18 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 2002–2008 A.6.4 Households: Income Earners Per Household Table A.19 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 2002–2008 A.7 Employment A.7.1 Employment: Number of Workers by Sector Table A.20 NATIONAL EMPLOYMENT BY SECTOR, 2002–2008 A.7.2 Employment: Growth by Sector Table A.21 GROWTH IN EMPLOYMENT BY SECTOR, 2002–2008 A.7.3 Employment: Number of Workers by Gender Table A.22 TOTAL NATIONAL WORKFORCE BY GENDER, 2002–2008 A.7.3 Employment: Number of Workers by Habitation Table A.23 NATIONAL WORKFORCE BY HABITATION, 2002–2008 A.7.4 Employment: Urban Unemployment Table A.24 URBAN UNEMPLOYMENT RATES, 2002–2008 A.8 Consumer Income A.8.1 Consumer Income: Average Incomes by Sector Table A.25 AVERAGE INCOMES BY SECTOR, 2002–2008 A.8.2 Consumer Income: Growth by Sector Table A.26 GROWTH IN AVERAGE INCOMES BY SECTOR, 2002–2008 A.8.3 Consumer Income: Average Incomes by Region Table A.27 AVERAGE INCOMES BY REGION, 2002–2008 A.8.4 Consumer Income: Growth by Region Table A.28 GROWTH IN AVERAGE INCOMES BY REGION, 2002–2008 A.9 Consumer Market A.9.1 Consumer Market: Spending Trends Table A.29 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002–2008* A.9.2 Consumer Market: Per Capita Consumer Expenditure Table A.30 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002–2008* A.9.3 Consumer Market: Retail Sales and Consumer Spending Table A.31 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE*, 2002–2008 A.9.4 Consumer Market: Urban Income and Spending Compared Table A.32 URBAN & RURAL AVERAGE ANNUAL INCOME/EXPENDITURE, 2002–2008 A.10 Exchange Rates A.10.1 Exchange Rates: China Table A.33 AVERAGE ANNUAL RENMINBI EXCHANGE RATES AGAINST A VARIETY OF CURRENCIES, 2001–2008 A.10.2 Exchange Rates: Hong Kong Table A.34 AVERAGE ANNUAL HONG KONG DOLLAR EXCHANGE RATES AGAINST THE UNITED STATES DOLLAR AND RENMINBI, 2001–2008

Summary:

Between 2003 and 2009, the total current value market for chilled foods in China grew by 146.94%, though the rate of growth fluctuated considerably during that period. Overall the compound annual growth rate was 13.79%. The ownership of refrigerators was only 26.12 per 100 rural households in 2007, compared to 95.03 in urban households. Total volume retail sales of chilled foods in China is estimated to grow to 1.23 million tonnes by the end of 2009, rising by 114.9% over 2003. Between 2003 and end-2009, the compound annual growth rate is estimated to be about 11.55%. Improved choice in the market stems in part from vast improvements in China’s distribution networks – thanks in turn to expanding transport networks – which have helped to develop more regional trade in chilled foods. More produce is therefore moving around the country, reaching more consumers in more regions, raising the size of the potential market. Chilled foods are mainly sold through new retail formats such as supermarkets and hypermarkets. Organised supermarket chains are gaining significance as sellers of chilled foods, and are at the vanguard of spreading distribution of these products into more parts of the country. This suits the increasingly sophisticated and demanding needs of urban consumers with rising incomes. People are now able to buy more expensive chilled foods than before, leading to greater demand for variety and quality of products. As incomes and lifestyles improve, Chinese consumers are showing a greater interest in a more varied diet, and cooking with a wider variety of products. As in the West, cookery programmes have proliferated on Chinese television. Similarly, cookery books now fill large sections of local bookshops, reflecting considerable interest in cuisine amongst consumers. The increasing availability of processed and packaged foods has also added to the general growth in people’s interest in food, and all of these factors add to the growing demand for more variety and better quality of chilled food products. Sharp growth in consumer demand has prompted manufacturers to introduce greater efficiencies into their organisations. However, frequent food safety scares, especially related to hygiene, disease and the use of rapid growth hormones, have all added to consumer nervousness about the food that they buy, and these issues have the potential to seriously harm the chilled food market.