The pressure is on food and beverage importers 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”.

Go to Food Navigator-Asia’s full report