Evolving consumption trends in the Chinese market present both opportunities and risks for animal protein producers, including the seafood industry, but companies need to strategise for long-term consumer market changes, and get ready to meet the sophisticated demands of modern Chinese consumers, advises a new report from Rabobank.
According to the RaboResearch report, China’s animal protein market has seen consumption trends evolve due to cyclical and structural factors, including market oversupply, economic slowdown, demographic shifts and changing consumer values.
It insists that gone are the days of one-size-fits-all products in China’s animal protein market.
“Today’s consumers expect more than just a product; they seek a comprehensive value proposition that includes good service and valued experiences,” said Chenjun Pan, Senior Analyst – Animal Protein for RaboResearch.
Pan explains that this shift is a result of China’s remarkable economic growth, market liberalisation, and digitalisation, which have all contributed to per capita meat consumption doubling from 35kg in the mid-1990s to 72kg in 2023.
Seafood consumption stood at 22.8kg per capita.
From 2013 to 2023, beef and seafood consumption volumes increased at the fastest pace, with CAGRs of 3.2% and 4.4%, respectively.
The analysis finds that while China’s economy transitions and income growth moderates, the resilience of animal protein consumption is evident. It highlights that consumers may be tightening their belts in other areas, but their expenditure on food remains firm, with the focus shifting from quantity to quality.
“How to eat well instead of how to eat more has now become the focus of many Chinese consumers,” Pan said.
At the same time, China’s aging population and smaller household sizes are leading to a nuanced impact on animal protein consumption.
“The market is gradually moving away from pork, traditionally the dominant choice, toward poultry, beef, and seafood, which are favoured for their perceived health benefits,” Pan said. “Additionally, the older generation’s adoption of e-commerce, food delivery, and convenience foods marks the end of past consumption behaviours.”
According to RaboResearch, the future of China’s animal protein consumption is shaped by four notable trends:
- Value for money: Consumers are increasingly seeking products that offer the best value for their money
- Experience economy: There is a growing preference for spending on services over goods, reflecting a desire for valued experiences
- Health and nutrition: Investment in health and nutrition is on the rise, influencing purchasing decisions
- Evolving distribution channels: The continuous evolution of distribution channels is changing how consumers access animal protein products
To capitalise on these trends, Rabobank maintains that animal protein companies must pivot from a volume-centric to a consumer-centric approach. This involves focusing on:
- Value growth: Companies should prioritise value over volume, with an emphasis on poultry, beef and high-value seafood
- Downstream extension: Closer integration with foodservice and retailers will help companies secure margins and meet consumer needs more effectively
- Sustainability: As consumer awareness of sustainability grows, animal protein supply chains have the opportunity to strengthen partnerships with retailers and foodservice by enhancing sustainability efforts
- Standardisation: The trend toward standardised food processing and preparation opens new avenues for supply chain innovation
“These changes in China’s animal protein market present a unique set of challenges and opportunities. Companies that adapt to these new consumption trends with agility and consumer focus are set to thrive in this dynamic environment,” Pan said.
The report notes that Chinese consumers have “a positive perception” of seafood and that the demand for premium products increased the consumption of higher value seafood, including shrimp, wild-caught and deepsea fish over traditionally consumed carp.
This demand saw China’s seafood imports increased rapidly between 2010 and 2023, with a CAGR of 11%. Shrimp has been the main product in terms of value, with a sixfold increase in the past 13 years.
“We expect seafood imports to maintain an upward trend in the coming years, despite the slowing economy,” states the report.
