China’s packaged food industry set for stable growth in 2017, Fitch says
Food producers rely on innovative new products to attract consumers with changing preferences
China’s packaged food industry will retain its stable growth outlook in 2017 even as consumer preferences in food and beverage options undergo a shift, analysts say.
While food producers face headwinds with their core products as consumer become more conscious of health and quality, companies are making up for weaker sales by finding new ways to drive revenue, a Fitch report finds.
“Innovation and new product launches are likely to become more relevant to drive sales growth as
industry growth eases back,” Fitch analysts Yee Man Chin and Cathy Chao wrote in a report.
Taiwanese food manufacturer Want Want Holdings — known for its rice cakes and flavoured drinks — is working to diversity its products, particularly after posting soft sales in the first half.
Want Want’s rice-cracker segment was flat in the first half of 2016 and its snack food sales declined 11 per cent year on year, while dairy and beverage sales fell by over 19 per cent.