New Report | The Private Label Food Products Market in China
The China-Britain Business Council and the EU SME have jointly launched the report, Private Label F&B Products Market in China. This report on the private label food products market begins by laying out the definition of a private label product, and contrasting it with white label products, before highlighting the key categories.
The report then proceeds to shed light on the market as a whole and its newest developments, including its distribution channels and key categories; details the market’s key actors, brands, and competitors of EU SMEs; reveals the challenges and opportunities that EU SMEs may face; and finally presents case studies for reference and further understanding.
In order to provide relevant, concise, and focused information, this report focuses on a few key aspects:
- In terms of distribution channels, private label food products in China are concentrated in supermarkets, convenience stores, food product distributors, and online platforms.
- Olive oil, wine, beer, and pet food are key product categories that are highlighted and discussed, providing an overview of the products’ market, consumer trends, and main suppliers and competitors.
- Recent key developments laid out in this report include the weakening of advantages inherent with certain retail and distribution channels in a fast-changing market, which forces companies to quickly respond and adapt, and product segmentation to meet increasingly diverse consumer demands.
Overall, private label products in China still make up only a small portion of the market. However, the country’s private label market has in recent years experienced rapid growth, growing 23% from 2019 to 2020. The growth that the market has experienced, coupled with its potential to develop in the same way as it has in Europe and the Americas, indicate great potential for even further growth.
Some initial private labels in the earlier days of China’s private label foods market were introduced by offline retailers, such as CR Vanguard’s Run Zhi Jia and FamilyMart’s FamilyMart Collection, but the eventual age of e-commerce primed the market for online shopping giants like Taobao and JD.com to develop their own private labels. These initial offerings were soon followed by several other private labels from competitors like NetEase and Penguin Guide.
The private label food products market in China presents many opportunities, as the country has recently announced efforts to boost domestic spending and promoting mutual reinforcement of domestic and international economic ‘dual circulation’. Additionally, private labels have been gaining increasing acceptance amongst consumers.
However, EU SMEs must take note of the market’s potential challenges, such as remaining competitive in both quality and pricing of products, and the necessity to be able to respond and adapt quickly to changes in an ever-evolving environment in terms of consumer demand, distribution channels, and more.