China’s consumer landscape is rapidly changing, driven by the country’s fast-paced economic growth, market liberalization, and the rise of digitalization. According to a recent RaboResearch report titled “New Consumption Trends in China Offer Opportunities for Animal Protein,” these shifts are significantly impacting the meat market.
Despite a general reduction in spending across various categories, food expenditure remains robust. However, consumers are now seeking more than just the product itself—they expect a comprehensive value proposition that includes quality service and enriched experiences. This change is particularly evident in the animal protein sector, where consumers are increasingly focused on getting value for their money while also being open to paying a premium for high-quality products.
This trend aligns with China’s growing experience economy, where there is a clear preference for investing in services and experiences rather than just goods. Additionally, health concerns such as obesity are prompting many consumers to prioritize balanced diets and nutritional value, shifting the focus from quantity to quality of food intake.
China’s per capita consumption of animal protein reached a significant 72 kilograms in 2023. Despite the strong demand, demographic shifts—such as an aging population and smaller household sizes—are influencing consumer preferences. The market is gradually moving away from pork, traditionally the staple meat, toward alternatives like poultry, beef, and seafood, which are perceived as healthier options. Moreover, the older generation’s increasing use of e-commerce, food delivery, and convenience foods signifies a departure from previous consumption habits.
The evolution of distribution channels also plays a crucial role in these market changes. The rise of e-commerce, the transformation of traditional wet markets, fluctuations in supermarket popularity, and the growth of convenience stores are all contributing factors. Additionally, on-premises consumption in places like restaurants and bars is growing, and live streaming has emerged as a new distribution channel, allowing consumers to learn cooking techniques and purchase products at competitive prices.
To succeed in this shifting landscape, companies must transition from a focus on volume to a more consumer-centric approach. Those that can quickly adapt to these new trends with a keen understanding of consumer needs are poised to thrive in this dynamic market.
