27 July 2018
The pressure is on food and beverage exporters to China to innovate as local brands increase market share, according to new research.
Local Chinese brands grew by 7.7% in 2017, capturing 98% of market growth, while foreign brands grew by just 0.4%.
Food Navigator-Asia reports that local brands won share over foreign brands in 21 categories, while foreign brands gained share in only three.
The research was conducted by consultancy Bain & Co and Kantar Worldpanel, and looked at 24 categories across packaged food and beverages, and personal and home care products.
The report quoted a researcher as saying that in order to win in China, foreign brands “need to win against local companies that are faster and more innovative than they had realised”.