1 | Page China – Market Entry handbook The Food and Beverage Market Entry Handbook: The People’s Republic of China: a Practical Guide to the Market in China for European Agri-food Products and Products with Geographical Indications 2 | Page China – Market Entry Handbook Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). This document has been prepared for the Consumers, Health, Agriculture and Food Executive Agency (Chafea) acting under the mandate from the European Commission. It reflects the views only of the authors, and the Commission / Chafea cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://europa.eu). Project Number: 2018.2311 Title: The Food and Beverage Market Entry Handbook: China Linguistic version Media/Volume Catalogue number ISBN DOI EN PDF PDF/Volume_01 EB-04-18-346-EN-N 978-92-9200-884-0 10.2818/5559 3 | Page China – Market Entry handbook Disclaimer: Different official procedures described in this Handbook refer to China’s existing governmental structures (as of April 2018) that are currently under reshuffle. These are therefore likely to change in the future and hence may be outdated by the time of reading. The future version of the Handbook will take into account any relevant changes once details on the new structures are known. Contents 1 The Food and Beverage Market Entry Handbook: The People’s Republic of China ............................. 8 1.1 How to use this handbook ............................................................................................................ 8 2 Country overview .................................................................................................................................. 9 2.1 General .......................................................................................................................................... 9 2.1.1 Country overview: China at a Glance ........................................................................................ 9 2.1.2 Geography and cities .............................................................................................................. 15 2.2 The food and beverages market ................................................................................................. 24 2.2.1 Overview of food trade ........................................................................................................... 24 2.2.2 Retail channels ........................................................................................................................ 26 2.2.3 Distribution and Logistics ........................................................................................................ 27 3 Market access and entry ..................................................................................................................... 31 3.1 Summary SWOT analysis ............................................................................................................. 31 3.2 EU Agri-food products, including European GI products ............................................................ 31 3.2.1 Market Size and Market Share ................................................................................................ 32 3.2.2 Growth Drivers and Trends ..................................................................................................... 34 3.2.3 Consumer profiles ................................................................................................................... 35 3.2.4 Cultural Sensitivities and Other Considerations ..................................................................... 38 3.2.5 Market access and market entry ............................................................................................ 40 3.2.6 The status of Geographical Indications and IP protection ...................................................... 50 3.2.7 WTO disputes and other trade barrier issues ......................................................................... 59 4 Market Snapshots for Selected Products ............................................................................................ 61 4.1 Wine ............................................................................................................................................ 61 4.1.1 SWOT analysis ......................................................................................................................... 62 4.1.2 Consumption ........................................................................................................................... 62 4.1.3 Offer ........................................................................................................................................ 68 4 | Page China – Market Entry Handbook 4.1.4 Distribution ............................................................................................................................. 75 4.1.5 Challenges for EU products ..................................................................................................... 77 4.2 Spirits .......................................................................................................................................... 78 4.2.1 SWOT analysis ......................................................................................................................... 78 4.2.2 Consumption ........................................................................................................................... 78 4.2.3 Offer ........................................................................................................................................ 84 4.2.4 Distribution ............................................................................................................................. 92 4.2.5 Challenges for EU products ..................................................................................................... 94 4.3 Beer ............................................................................................................................................. 95 4.3.1 SWOT analysis ......................................................................................................................... 95 4.3.2 Consumption ........................................................................................................................... 96 4.3.3 Offer ........................................................................................................................................ 99 4.3.4 Distribution ........................................................................................................................... 104 4.3.5 Challenges for EU products ................................................................................................... 105 4.4 Fresh meat ................................................................................................................................ 105 4.4.1 SWOT analysis ....................................................................................................................... 105 4.4.2 Consumption ......................................................................................................................... 106 4.4.3 Offer ...................................................................................................................................... 110 4.4.4 Distribution ........................................................................................................................... 118 4.4.5 Challenges for EU products ................................................................................................... 118 4.5 Processed meat ......................................................................................................................... 120 4.5.1 SWOT analysis ....................................................................................................................... 120 4.5.2 Consumption ......................................................................................................................... 120 4.5.3 Offer ...................................................................................................................................... 123 4.5.4 Distribution ........................................................................................................................... 127 4.5.5 Challenges for EU products ................................................................................................... 127 4.6 Dairy Products ........................................................................................................................... 129 4.6.1 SWOT analysis ....................................................................................................................... 129 4.6.2 Consumption ......................................................................................................................... 129 4.6.3 Offer ...................................................................................................................................... 137 4.6.4 Distribution ..........................................................................................................................