Page 272 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
of newly launched start-ups compared to 2019. Ready Meals
Such investment spree was mainly driven by
the investors’ high expectation of the potential There is a rapidly growing trend of ready to
market size of alternative protein in China. As per eat meals in China. The rising popularity of the
the latest official data available, there are around "prefabricated food" industry has galvanized
50 million vegetarians and vegans in China. But investors into the field in recent years. The growing
the market potential of China’s alternative protein trend has fueled the business of ready-to-eat food
sector is likely to be larger than this figure, as makers and bodes well for the long-term market.
most local plant-based meat start-ups are not just China's current market size of prefabricated food
targeting vegans and vegetarians, but also non- is about 300 billion RMB (US$47 billion), with the
plant-based young professionals, who are looking potential to expand to a trillion RMB in the next
to adopt a healthier and more sustainable lifestyle six to seven years and more than 3 trillion RMBin
and want to reduce their meat consumption and the long run, according to a report released by
consume more plant-based alternatives. This Shenzhen-based research firm AskCI Consulting.
type of consumer is exactly where the growth Many local Chinese governments are tapping
potential for this market is. 2021 saw both China’s the massive market of ready-to-eat foods. In
plant-based and cell-based meat sectors continue November 2021, the agricultural and rural
to grow, and with it an increase in competition. affairs department of South China's Guangdong
Besides numerous alternative protein start-ups province launched measures to rev up the
which sprang up with strong financial and technical prefabricated dish industry. In February 2022,
support from domestic and overseas venture a ready-made meal industry association was
capital funds, established local animal protein and established in Shandong province. Ready-to-eat
vegetarian companies have also been seizing the dishes are in connection with rural revitalization
opportunity to expand their product portfolio and and consumption reform, and such products will
grab a share of this emerging market (Zhang). pull the transformation and upgrading of local
agriculture and food industry (Xinhua, “China’s
At a speech, delivered March 6, 2022 at the Appetite Grows for Ready-Made Dishes”).
13th National Committee of the Chinese People’s
Political Consultative Conference (CPPCC), The stay-at-home economy has not only
President Xi announced that China should adopt changed people's consumption and eating habits,
a “greater food” approach and look at plant- but also propelled e-commerce grocery platforms
based, fermented and cell-cultured animal to accelerate their push into the burgeoning
protein in addition to traditional food sources as precooked foods segment. E-commerce platforms
a way to protect the environment and achieve and catering enterprises should ramp up efforts
sustainable development. He stated that science to build complete and highly efficient supply
and technology are key to food security and that chain systems to ensure freshness and quality,
the government should be aware of the changing as well as improve on-time deliveries of semi-
trends in people’s food choices. President Xi is one cooked dishes. Freshippo, a fresh food chain under
of only a handful of global leaders to have publicly Alibaba Group Holding Ltd, is upping the ante in
embraced alternative protein as an important the fast-growing ready-to-cook meals sector, with
strategic priority for development. The number of stock keeping units of premade dishes rising to 25
alternative protein start-ups in China has increased in 2022. The company said sales of frozen semi-
significantly since 2019, with over 1.563 billion cooked foods skyrocketed 559% year-on-year in
RMB (US $245 million) invested in the sector during May. It has partnered with premium fresh produce
the period. A recent market study by Lever China suppliers and established supply chain centers in
and leading Chinese food media outlet Food Plus Wuhan, Hubei province, and Chengdu, Sichuan
found that 90% of Chinese consumers would eat province, which have been put into operation
cultivated meat and 30% would consider making recently. Market consultancy iiMedia Research said
cultivated meat their main source of protein in the the country's prepared meals saw sales of 345.9
future if pricing and taste were able to match the billion RMB(US$50.9 billion) in 2021. The figure is
conventional version (“China’s President Xi”). expected to rise at a compound annual growth
272
of newly launched start-ups compared to 2019. Ready Meals
Such investment spree was mainly driven by
the investors’ high expectation of the potential There is a rapidly growing trend of ready to
market size of alternative protein in China. As per eat meals in China. The rising popularity of the
the latest official data available, there are around "prefabricated food" industry has galvanized
50 million vegetarians and vegans in China. But investors into the field in recent years. The growing
the market potential of China’s alternative protein trend has fueled the business of ready-to-eat food
sector is likely to be larger than this figure, as makers and bodes well for the long-term market.
most local plant-based meat start-ups are not just China's current market size of prefabricated food
targeting vegans and vegetarians, but also non- is about 300 billion RMB (US$47 billion), with the
plant-based young professionals, who are looking potential to expand to a trillion RMB in the next
to adopt a healthier and more sustainable lifestyle six to seven years and more than 3 trillion RMBin
and want to reduce their meat consumption and the long run, according to a report released by
consume more plant-based alternatives. This Shenzhen-based research firm AskCI Consulting.
type of consumer is exactly where the growth Many local Chinese governments are tapping
potential for this market is. 2021 saw both China’s the massive market of ready-to-eat foods. In
plant-based and cell-based meat sectors continue November 2021, the agricultural and rural
to grow, and with it an increase in competition. affairs department of South China's Guangdong
Besides numerous alternative protein start-ups province launched measures to rev up the
which sprang up with strong financial and technical prefabricated dish industry. In February 2022,
support from domestic and overseas venture a ready-made meal industry association was
capital funds, established local animal protein and established in Shandong province. Ready-to-eat
vegetarian companies have also been seizing the dishes are in connection with rural revitalization
opportunity to expand their product portfolio and and consumption reform, and such products will
grab a share of this emerging market (Zhang). pull the transformation and upgrading of local
agriculture and food industry (Xinhua, “China’s
At a speech, delivered March 6, 2022 at the Appetite Grows for Ready-Made Dishes”).
13th National Committee of the Chinese People’s
Political Consultative Conference (CPPCC), The stay-at-home economy has not only
President Xi announced that China should adopt changed people's consumption and eating habits,
a “greater food” approach and look at plant- but also propelled e-commerce grocery platforms
based, fermented and cell-cultured animal to accelerate their push into the burgeoning
protein in addition to traditional food sources as precooked foods segment. E-commerce platforms
a way to protect the environment and achieve and catering enterprises should ramp up efforts
sustainable development. He stated that science to build complete and highly efficient supply
and technology are key to food security and that chain systems to ensure freshness and quality,
the government should be aware of the changing as well as improve on-time deliveries of semi-
trends in people’s food choices. President Xi is one cooked dishes. Freshippo, a fresh food chain under
of only a handful of global leaders to have publicly Alibaba Group Holding Ltd, is upping the ante in
embraced alternative protein as an important the fast-growing ready-to-cook meals sector, with
strategic priority for development. The number of stock keeping units of premade dishes rising to 25
alternative protein start-ups in China has increased in 2022. The company said sales of frozen semi-
significantly since 2019, with over 1.563 billion cooked foods skyrocketed 559% year-on-year in
RMB (US $245 million) invested in the sector during May. It has partnered with premium fresh produce
the period. A recent market study by Lever China suppliers and established supply chain centers in
and leading Chinese food media outlet Food Plus Wuhan, Hubei province, and Chengdu, Sichuan
found that 90% of Chinese consumers would eat province, which have been put into operation
cultivated meat and 30% would consider making recently. Market consultancy iiMedia Research said
cultivated meat their main source of protein in the the country's prepared meals saw sales of 345.9
future if pricing and taste were able to match the billion RMB(US$50.9 billion) in 2021. The figure is
conventional version (“China’s President Xi”). expected to rise at a compound annual growth
272
