Trends in Food, Beverage & Consumer Insights in China 2016

Alick Zhou
CEO, Ipsos China
2016，
Top 10 Trends

2
Food Safety

3
Food safety is most considered when consumers buy food

86% of the consumers consider

food safety when buying food
86%

52% of the consumers say they

would give top consideration to
food safety when buying food
52%

Base=Consumers from 1st and 2nd-tier cities

4
Food safety incidents significantly reduce consumer confidence in
the brand
Changes in confidence of the category when Changes in confidence of the brand that is found
certain brand is found with safety incidents with safety incidents

59% 81%
56% 79%

2015 2016 Base=Consumers from 1st and 2nd-tier cities

5
The vast majority of consumers are against food additives

A quarter say they can accept

Up to 90 percent 25% foods of higher prices and
without any food additives
（ 88%) of
consumers from 1st
and 2nd-tier cities are
against food additives

Base=Consumers from 1st and 2nd-tier cities

6
Food Health

7
 Consumers show higher concerns about food health

Considerations when buying food Top considerations when buying food

Food safety 86 Food safety 52

Food health 82 Food health 23
Taste 72 Taste 7
Price 65 Brand 6
Brand 58 Negative news or not 5
Negative news or not 45 Price 4
Purchase convenience 44 Purchase convenience 1
Recommendation of friends and… 33 Recommendation of friends and… 1
Product packaging or appearance 32 Product packaging or appearance 1

Base=Consumers from 1st and 2nd-tier cities

8
A considerable number of consumers are sensitive to their body
weight and concern themselves with food calories

53% 53% of the consumers are very

sensitive to their body weight

47% 47% of the consumers show concerns

about the calories of food they eat

Base=Consumers from 1st and 2nd-tier cities

9
Huge potential of food health segments

No artificial Organic Low calorie Slimming

additives ingredients effect

Base=Consumers from 1st and 2nd-tier cities

Green/Organic
Food

11
Over 30% of 1st and 2nd-tier-city consumers often buy
green/organic foods

81% below RMB 7,000

93% RMB 7,000-12,000 93% have kid (s)
95% Above RMB 20,000 87% have no kids
Base=Consumers from 1st and 2nd-tier cities
12
High-income families are more willing to pay higher
prices for green/organic food
Amount of money willing to spend on
green/organic foods

10 16
20
22

47
50

23
12

Total Above RMB 20,000

Below 10% 11%-30% 31%-50% Above 50%

Base=Consumers from 1st and 2nd-tier cities
13
Counterfeit products are major consumption impediments of
green/organic foods

No great difference
between organic and 23%
ordinary foods

23%
The taste is no better 8%
15% than ordinary foods
15% Inconvenient to buy 8%

56% 73%

56% Too high prices Hard to distinguish the true

73%
from the counterfeit

Base=Consumers from 1st and 2nd-tier cities that do not or seldom buy green/organic foods
14
Package

15
A considerable number of consumers generally concern
themselves with food package

88% 67% 47% 42% 41% 38% 26%

Product Ingredients/ Green/Orga Quality Publicity on Name and Outside

Date/ Nutrition nic Product Level Health/Nutriti Address of Design
Shelf Life Information Identificatio on Manufacturer/
n Distributor
Base=Consumers from 1st and 2nd-tier cities 16
List of Ingredients, Green/Organic Identification and Quality
Level are focuses of concern
Food package information Food package information
concerned concerned
By monthly family income By having kids or not
75
Ingredients/ 68
70
Nutrition
List 65
63
56

60
Green/Organic 47 53
Product Above RMB 20,000
Identification 46 RMB 12,001-20,000
RMB 7,000-12,000
33
33 Have kid
Below RMB 7,000 Have no kid

Base=Consumers from 1st and 2nd-tier cities

17
“Mini-package”, tasteful, healthier, and more environment
friendly

18
Globalisation

19
Most Chinese consumers consider food globalization a good
thing
China 81% 12%
India 71% 23%
Brazil 68% 22%
South Africa 66% 23%
Sweden 62% 23%
Korea 60% 34%
Argentina 56% 28%
Japan 55% 27%
Total 50% 34%
Turkey 50% 40%
Canada 47% 34%
Australia 45% 35%
Germany 43% 44%
Poland 39% 39%
Spain 38% 41%
The United States 37% 38%
Italy 36% 49%
Belgium 31% 49%
Russia 27% 41%
France 24% 65%

Agree Do not agree

20
Over eighty percent of consumers often buy imported food

14% 19%
Often Seldom/Never

Often buy imported food

26%
16%
10%
2%
Below RMB RMB 7,000- RMB 12,001- Above RMB
7,000 12,000 20,000 20,000

67%
Occasionally Base=Consumers from 1st and 2nd-tier cities

21
 Dairy products

49
Children's food

40
36
Nuts

Alcohol

27
Beverages

24
Candies/pastry
23
Fresh food - vegetables
19
19

Instant noodles/biscuits/puffed food

16

Fresh food - meat/fish

Canned food
16

Processed meat/deli
14

Bean products
12

Cereal/oil/eggs
10

Frozen/quick frozen food

10
Major types of imported foods bought by consumers

Pickled/preserves food
6

Fried/grilled food
Base=Consumers from 1st and 2nd-tier cities

22
6

Tea
Preferences of imported food vary with different consumer
groups

Imported food bought (by having or having no kid) 51

37
49

20 23 30
15 44
20 34
16 18 17 27 29 28
11 13 22
10 11 17 19
6 6 10 11 11 12
5 7 8 6 8

Having kid
No kid

Base=Consumers from 1st and 2nd-tier cities

23
Preferences for imported food vary with family income

Imported food bought (by monthly family income)

Alcohol 19 26 26 36

Fresh food – meat/fish

7 16 20 16

Processed food/deli 12 14 17 15

7000元以下 7001-12000元 12001-20000元 20000元以上

Base=Consumers from 1st and 2nd-tier cities

24
Innovation

25
Chinese consumers are more open to try new foods

India 58 35
Turkey 54 41
China 53 41
South Africa 52 40
Brazil 39 43
South Korea 36 57
Total 35 55
Italy 35 57
Germany 33 59
Spain 33 58
The United States 31 59
Poland 31 56
Argentina 31 51
Britain 29 62
Australia 28 61
Canada 27 64
Russia 26 58
France 25 69
Sweden 24 69
Belgium 23 66
Japan 20 68

Agree Do not agree

26
Brand food innovation and breakthrough

Innovation of traditional foods

Brand’s own dining experience

27
New Channel

28
Rapid development of food’s e-commerce channels

Source: “China Fresh Food E-Commerce Research Report”

29
Eighty percent of consumers from 1st and 2nd-tier cities
buy foods/beverages online

82% of consumers from 1st and 2nd-tier

cities buy foods/beverages online

Base=Consumers from 1st and 2nd-tier cities

30
Promotion of e-commerce channels further stimulate local special
purchases for the Spring Festival

Source: Alibaba “Big Data Report on China’s New Year Stocking” 2016
31
 Energy
Supplement

32
The popularity of running and fitness sports stimulate the
demand for functional drinks

34%
Of consumers from first and
second-tier cities say they run
quite a lot
51%
Of consumers from first
and second-tier cities say
they drink functional drinks
whenever/when they run

Base=Consumers from 1st and 2nd-tier cities

33
Reasons to drink sports functional drinks

Quickly regain strength and

energy 67

Replenish nutrients needed 62

Supplement water 60

Thirst-quenching 42

It is a habit and I feel

uncomfortable if I don't drink it 17

Base=Consumers from 1st and 2nd-tier cities

34
Snacking

35
Snacking has become a way of life
Russia 53% 43%
India 51% 45%
South Africa 48% 50%
Britain 47% 45%
Poland 47% 47%
South Korea 40% 57%
Australia 37% 57%
The United States 34% 60%
Total 33% 62%
Canada 33% 63%
China 33% 65%
Turkey 28% 70%
Argentina 27% 67%
Germany 27% 65%
Japan 26% 68%
Italy 23% 73%
Spain 22% 73%
Sweden 21% 69%
Belgium 17% 76%
France 14% 82%

Agree Do not agree

36
Flavor snacks has gradually become a popular afternoon
snack and meal replacement food

Consumption of snacks in the

United States was up
47%
from 2014
2010 to 2014

2010

37
Customisation

38
More than anytime before do consumers expect to have
foods as a self-expression
China 72% 23%
India 63% 31%
Turkey 55% 42%
South Korea 53% 43%
South Africa 47% 50%
Brazil 41% 49%
Total 40% 53%
Sweden 38% 57%
Australia 38% 57%
France 37% 60%
The United States 36% 56%
Russia 35% 55%
Japan 33% 55%
Poland 33% 56%
Germany 32% 61%
Canada 29% 64%
Spain 28% 64%
Argentina 27% 63%
Belgium 26% 67%
Italy 17% 77%

Agree Do not agree

39
Chinese consumers prefer customized food brands

I prefer to buy food that can reflect my I am willing to pay more for food brand
personality image that attracts me
China 80 China 72
Turkey 71 India 63
India 65 Turkey 55
Italy 62 South Korea 53
Poland 61 South Africa 47
Japan 60 Brazil 41
South Africa 58 Total 40
South Korea 56 Australia 38
Total 53 Sweden 38
Brazil 51 France 37
Canada 50 The United States 36
The United States 50 Russia 35
Australia 49 Britain 33
France 44 Poland 33
Sweden 44 Japan 33
Britain 43 Germany 32
Germany 42 Canada 29
Argentina 42 Spain 28
Russia 39 Argentina 27
Belgium 37 Belgium 26
Spain 36 Italy 17

40
Move consumers with customized brand image

41
Pepsi Emoji theme expression package

42
 THANK
YOU!

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