New consumption trends in China “offer opportunities” for the animal protein sector, according to research published by the multinational banking and financial services company Rabobank.
China’s animal protein market has seen consumption trends change due to what Rabobank describes as “cyclical and structural factors”, including market oversupply, economic slowdown, demographic shifts, and changing consumer values.
However, as well as creating opportunities, these changes may also comes with risks, the bank said.
Therefore, businesses in the sector need to “strategise” for long-term consumer market changes, and get ready to meet the “sophisticated demands” of modern Chinese consumers, according to Rabobank.
It said that the “era of supplying homogenous products to meet basic needs is over” and that the days are “gone” of one-size-fits-all products in the animal protein market in China.
Chenjun Pan, a senior analyst in the area of animal protein for Rabobank, said: “Today’s consumers expect more than just a product. They seek a comprehensive value proposition that includes good services and value experiences.”
This change, Rabobank said, is as a result of China’s economic growth, market liberalisation, and digitalisation, which have contributed to per capita meat consumption doubling from 35kg in the mid-1990s to 72kg in 2023.
While income growth among consumers in China is moderate, the consumption trends towards animal protein consumption remains resilient.
Pan said: “How to eat well instead of how to eat more has now become the focus of many Chinese consumers,” indicating that the focus has shifted from quantity to quality.
China’s ageing population and smaller household size are also having an impact.
“The market is gradually moving away from pork, traditionally the dominant choice, toward poultry, beef and seafood, which are favoured for their perceived health benefits,” Pan said.
“Additionally, the older generation’s adoption of e-commerce, food delivery, and convenience foods marks the end of past consumption behaviours.”
According Rabobank’s research, the future of China’s animal protein consumption is shaped by four notable trends.
These are:
- Value for money, with consumers increasingly seeking products that offer the best value for their money;
- Experience economy, with a growing preference for spending on services over goods, reflecting a desire for valued experiences;
- Health and nutrition, which is on the rise in terms of consumer spending and purchasing decisions;
- Evolving distribution channels, which changes how consumers access animal protein products.
In order to capitalise on these trends, Rabobank is advising animal protein businesses to “pivot” from a volume-centric to a consumer-centric approach, focussing on poultry, beef and high-value seafood.
“These changes in China’s animal protein market present a unique set of challenges and opportunities. Companies that adapt to these new consumption trends with agility and consumer focus are set to thrive in this dynamic environment,” Pan said.