Myth about the Chinese market: Is there an organic consumer market in China?

Although China does not have natural and organic grocery stores such as Whole Foods Market or health food retailers such as GNC, the Chinese retail industry has experienced phenomenal growth in the last twenty years.  In 1990, China had only a single supermarket, but by the end of 2006, the country boasted 70,000 supermarkets!  Recently, such superstores as Carrefour, Tesco, and Walmart have started to carry organic products in China.  In Beijing and Shanghai, boutique retailer chains featuring specialty foods have blossomed in just the past five years. Jenny Lou and City Shop carry only imported products, while Lohao City and Kaikele carry natural and organic foods.

So what are Chinese consumers buying?

They are increasingly purchasing comparatively expensive imported foods as an alternative to locally grown and processed products. Imported food and beverages are considered to be of higher quality, safer, and worth the money.  You will be pleasantly surprised to know that buyers of imported food are mostly local middle-class and upper-middle-class families and expatriates living in cities throughout the country.

Your products may compete very successfully against Chinese organic products if they meet the following criteria:

• Are certified by authoritative institutes, such as the USDA, ECO, Jas, and IFOAM
• Have flavors that Chinese consumers are accustomed to
• Are competitively priced (it is even better)
• Can be classified in categories that include baby products (natural and organic are better), organic skin care, organic food ingredients and supplements, natural and organic house cleaning products, and more
• Have a shelf life of more than twelve months

Growth in the Chinese retail industry and especially as shown by new emerging organic specialty stores is unknown to organic companies outside China.  The organic market in China is only in its infancy and offers unlimited potential for even more growth. Companies that begin selling in China will be at the forefront for success in the world’s strongest emerging market.