China 2015: CATEGORY UPDATES | Food and Dairy
Food and Dairy (+14%)
Food and dairy brands launched initiatives to address the category’s key issues: food quality and safety. To meet rising consumer health consciousness and demand for naturally healthy products, brands added healthier and more upmarket ingredients.
Meanwhile, food and dairy brands joined international testing organizations and formed alliances with overseas food leaders to improve production standards and overcome the trust issues that resulted from a series of food safety scandals several years ago.
To widen distribution, brands launched their own Internet stores or cooperated with leading Internet retailers. Some developed loyalty programs to retain customers and learn more about their food desires and habits.
In a category with a substantial number of SOEs (State Owned Enterprises), consolidation continued, motivated in part by the government’s desire to create brands with the scale necessary to successfully face foreign competition at home or abroad.