2017 CHINA MARKET. Meat Consumption Trend in China. Speaker: Celio Cella CEO & Founder of YUMTOWN MR. MEAT
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1 2017 CHINA MARKET Meat Consumption Trend in China Speaker: Celio Cella CEO & Founder of YUMTOWN MR. MEAT
2 CONTENTS OUTLINE: Overview on China meat market Meat Consumption Trend in China The changes of purchasing habits in China Key Sales Channels for Imported Premium Meat Challenges and Opportunities
3 PART 1 Overview on demand In Chinese Meat Market
4 Part 1: Overview on demand in China meat market --- Background Chinese Economy keeps increasing Outstanding increase contributed by the Middle and high class
5 Part 1: Market demand overview --- Consumption and Demands 1 Pork consuming stable 2 Low production efficiency in China domestic industry 3 Beef consumption increasing
6 Part 1: Market demand overview --- Government Policy 1 New Food Safety Law Free trade zone and import ports for meat increased 2 One Belt One Road New Silk Road foreign policy and trade initiative: 3 Labeling, traceability, safety and quality, etc. Restrict China mainland feeding and slaughtering industry. 11 free trade zone 51 import ports To build stronger transport and trade links between Asia and Europe
7 PART 2 Consumption trends in China Meat Market
8 Part 2: Consumption trends --- Target consumers Target people and their potential demands: A. Middle and high class people --- a good life B. Family concentrated consume --- giving the best to the next generation / aged people C. Younger people --- believe in the theory you are what you eat Location: mostly living in Tier 1 cities (Beijing, Shanghai, Guangzhou, Shenzhen)
9 Part 2: Consumption trends --- Target consumers What is imported meat means to these people? Safe & Tasty A good present Having a good life In China, a decent gift is a must to show how respectful you are to who receive the gift. Imported food products in China are better packed with relatively high price, which makes it a perfect choice of gift
10 Part 2: Consumption trends --- Target consumers focuses on: BEFORE Chinese customer used to focus on: BIG VOLUME NOW Chinese customer focus on: HIGH QUALITY
11 Part 2: Consumption trends --- Target consumers focus: ME MYSELF Chinese customers start to care about : Premium, organic, healthy, safe traceability, animal warfare Good service, great experience
12 PART 3 Changes in purchasing habit in China
13 Part 3: Changes in purchasing habit in China Second child and aging population traditional ways of buying meat E-commerce cheap food Healthy,safe tasty food Quality quantity The fashion of beef consumption is spreading
14 PART 4 Key sales channels
15 Part 4: Key channels for premium meat products --- Catering & Food service, restaurants 1 41% do so over 4 times per week 80% Middle class Lunch out Eat out for dinner once or twice per week 60% 26% of these meals They choose beef and other premium meat
16 Part 4: Key channels for premium meat products --- Catering 02 China catering sector is the major user of import premium meat. Although catering growth has been slowing in recent years, particularly in the fine-dining segment in part due to the impact of the government s anti-corruption campaign, it is still one of the fastest growing sectors in the context of global catering.
17 Part 4: Key channels for premium meat products --- Catering 3 Consumer preferences are changing As China evolves from being an emerging market with limited options into a more mature, higher-income market with sophisticated dining consumers. WESTERN RESTAURANTS More Western-style restaurants, including steakhouses are opening in China, exposing consumers to premium import meat There is increasing competition from local brands that better understand their target consumer and the environment.
18 Part 4: Key channels for high end meat products --- Retail Channels
19 Part 4: Key channels for premium meat --- Retail Channels China s retail sector is highly fragmented, with the Top 10 retailers accounting for less than 5% of the market. Rapid urbanization in China will remain a major driving force behind the continued spread of modern retail in the country In Tier 1 cities, modern retail segment has replaced many wet markets.
20 Part 4: Key channels for premium meat --- Retail Channels Modern grocery retail sales increase slower Online grocery shopping growing significantly Investments in cold chain logistics ( both government and the private sector)
21 PART 5 Challenges and Opportunities
22 Part 5: Challenges and Opportunities --- Opportunities I. Food safety problems in China: too many issues exposed on meat production in China, making the consumers trust more in imported meat products
23 Part 5: Challenges and Opportunities --- Opportunities II. Imported products are having a very good reputation among Chinese market
24 Part 5: Challenges and Opportunities --- Challenges Still lack of control on the smuggling meat Acceptance/Differentiation of premium remains unknown; Acceptance?
25 Mark J. Smith CEO & Founder
26 SPEAKER : CEO & FOUNDER MR. MEAT CELIO CELLA To Create Value for our customers and partners Since 1994 Studied Chinese Market for over 20 years Mark J. Smith CEO & Founder
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