Meat Consumption Trend in China

Speaker: Celio CellaCEO & Founder of YUMTOWN |MR. MEAT

2017 CHINA MARKET

Overview on China meat market

Meat Consumption Trend in China

The changes of purchasing habits in China

Key Sales Channels for Imported Premium Meat

CONTENTS OUTLINE:

Challenges and Opportunities

PART 1

Overview on demandIn Chinese Meat Market

Chinese Economy keeps

increasingOutstanding increase contributed by the

Middle and high class

Part 1: Overview on demand in China meat market

--- Background

Part 1: Market demand overview

--- Consumption and Demands

3

Beef consumption

increasing

2

Low production efficiency

in China domestic industry

Pork consuming

stable

1

Part 1: Market demand overview

--- Government Policy

Labeling, traceability, safety and quality, etc.

Restrict China mainland feeding and slaughtering industry.

11 free trade zone51 import ports

To build stronger transport and trade links between Asia and Europe

3

“One Belt One Road” New Silk Road

foreign policy and trade initiative:

2

Free trade zone and import ports

for meat increased

New Food

Safety Law

1

PART 2

Consumption trends

in China Meat Market

Target people and their potential demands:

A. Middle and high class people --- a good life

B. Family concentrated consume --- giving the best to the next generation / aged people

C. Younger people --- believe in the theory “you are what you eat”

Location: mostly living in Tier 1 cities

(Beijing, Shanghai, Guangzhou, Shenzhen)

Part 2: Consumption trends

--- Target consumers

What is imported meat means to these people?

• Safe & Tasty

• A good present

• Having a good life

In China, a decent gift is a must to show how respectful you are to who receive the

gift. Imported food products in China are better packed with relatively high price,

which makes it a perfect choice of gift

Part 2: Consumption trends

--- Target consumers

Part 2: Consumption trends

--- Target consumers focuses on:

BEFOREChinese customer used to

focus on:

HIGH QUALITY

NOWChinese customer

focus on:

BIG VOLUME

Chinese customers start to care about :

Part 2: Consumption trends

--- Target consumers focus:

“Premium, organic, healthy, safe traceability, animal warfare

Good service , great experience ………”

ME MYSELF

PART 3

Changes in purchasing habit in China

• Second child and aging population

• traditional ways of buying meat E-commerce

• cheap food Healthy ,safe tasty food

• Quality quantity

• The “fashion” of beef consumption is spreading

Part 3: Changes in purchasing habit in China

PART 4

Key sales channels

Part 4: Key channels for premium meat products

--- Catering & Food service, restaurants

1

80%

Middle class Lunch out

41% do so over 4 times per week

26% of these meals

They choose beef and other

premium meat

60%

Eat out for dinner

once or twice per week

02

Part 4: Key channels for premium meat products

--- Catering

China catering sector is the major user of

import premium meat.

Although catering growth has been slowing in

recent years, particularly in the fine-dining

segment in part due to the impact of the

government’s anti-corruption campaign, it is

still one of the fastest growing sectors in the context of global catering.

More Western-style restaurants, including steakhouses are opening in China, exposing consumers to premium import meat

WESTERN RESTAURANTS

Consumer preferences are

changing

As China evolves from being an emerging market with limited options into a more mature,

higher-income market with sophisticated dining consumers.

There is increasing competition from local brands that better understand their target consumer and the environment.

Part 4: Key channels for premium meat products

--- Catering

3

Part 4: Key channels for high end meat products

--- Retail Channels

China’s retail sector is highly

fragmented, with the Top 10

retailers accounting for less

than 5% of the market.

Part 4: Key channels for premium meat

--- Retail Channels

Rapid urbanization in China will

remain a major driving force behind

the continued spread of modern retail in the country

In Tier 1 cities, modern retail

segment has replaced many

wet markets.

Online grocery shopping growing

significantly

Modern grocery retail sales

increase slower

Investments in cold chain logistics

( both government and the

private sector)

Part 4: Key channels for premium meat

--- Retail Channels

PART 5

Challenges and Opportunities

Part 5: Challenges and Opportunities

--- Opportunities

I. Food safety problems in China: too many issues exposed on meat production in China,

making the consumers trust more in imported meat products

II. Imported products are having a very good reputation among Chinese market

Part 5: Challenges and Opportunities

--- Opportunities

Still lack of control on the smuggling meat

Part 5: Challenges and Opportunities

--- Challenges

Acceptance/Differentiation of premium

remains unknown;

Acceptance

?

Mark J . Smith

CEO & Founder

SPEAKER :CEO & FOUNDER MR. MEAT

CELIO CELLA

Mark J . Smith

CEO & Founder

To Create Value for our customers and partners

• Since 1994

• Studied Chinese Market for over 20 years