Australian food and beverage to China(1)

Trends and opportunities
            The market
            With a population of over 1.3 billion, China is currently Asia's
            second largest food and beverage market by value after Japan. As
            China's economy grows and appetite for sophisticated consumer tastes
            develops, Australian food and beverage companies have a great
            opportunity to enter the China market. In 2006-07, Australian food
            exports to China were valued at $664 million (Source: Food Australia
            Report - Australian Food Statistics 2007). 
            The increased interest and demand for Australian food and beverages
            is being driven by China's strong economic growth, and its rising
            per capita income. Emerging second tier markets and wealthy coastal
            cities, not just big hubs like Beijing, Shanghai and Guangzhou, are
            providing opportunities for Australian companies to access a greater
            share of the Chinese market.
            Food consumption patterns in China have changed significantly as
            living standards have risen. Chinese consumers are becoming more
            discerning and are demanding:
            Higher quality
            Modern packaging
            Freshness
            Better nutrition
            Confidence in food safety and ingredients integrity
            Convenience
            More variety
            Opportunities
            Foreign-invested supermarket retailers such as Wal-mart, Trust-Mart,
            Makro, Jusco, Carrefour, Tesco, Lotus, Metro, Park'N Shop, 7-Eleven,
            Watson's and major domestic chain store outlets such as Hualian,
            Lianhua, and Vanguard have expanded in China with speed. These
            supermarkets have become more diversified and sophisticated, and
            offer local consumers an increased range of imported foods and
            beverages.
            The proliferation and growth in the number of food retail outlets
            and chains presents opportunity for Australian exporters of food to
            China. All of the foreign-funded supermarkets plan to increase their
            investment in China.
            Australia is recognised by local consumers as having a clean and
            green environment with good quality products and brands. Many
            Australian exporters have already taken advantage of this
            competitive edge by establishing a position as a supplier of
            products such as meat, dairy products, fresh fruits and seafood.
            Market feedback has shown interest in Australian suppliers of:
            Milk powder, UHT milk, cheese, butter and margarine
            Seafood (eg. oysters, live lobster, live abalone, live king crab)
            Fresh fruit (eg. citrus)
            Wheat, barley and rice
            Frozen red meats (eg. beef, veal, lamb)
            Processed foods
            Wine
            Beer
            Natural fruit juice
            Convenience and 'instant' foods
            Confectionery and snack products