China’s Packaged Food Market: Consumer ConvenienceFood Preferences

The pace of modern urban life is fuelling a sustained growth in the consumption ofconvenience food. Respondents in the recent HKTDC Research survey on the mainlandpackaged food market [1] had bought on average 4.77 types of convenience food in thethree months preceding the survey. That’s a significant increase on the figure of 3.39 in asimilar survey in 2013. Frozen desserts appear to be the most popular type ofconvenience food among those responding to the survey, and the frequency at whichthey are purchased has also grown faster than that of any of the other categories of foodin this survey. However, the increasing popularity of takeaways has had an adverse effecton the levels of consumption of convenience food.

Most Purchased: Frozen Desserts

The survey found that, overall, the purchase of convenience food products is stillgrowing. 80% of the respondents said that they buy more convenience food productsthan they did two to three years ago. In the three months preceding the survey,respondents purchased on average 4.77 types of convenience food products, a rise fromthe average of 3.39 types bought by respondents in a similar survey in 2013.

59% of the respondents had purchased “fast-chilled/frozen sweet dim sum” (such asbean paste buns, sweet dumplings, cakes, etc.) in the preceding three months, making itthe most popular type of convenience food among those responding to the survey. Thatis a significant increase from the 47% of respondents who had bought such products in asimilar survey in 2013. The proportion of respondents who had purchased “fast-chilled/frozen salty dim sum” (such as steamed twisted rolls, dumplings, turnip cakes,etc.) in the three months preceding the survey has also risen from its 2013 level of 47%,but not by as much as the increase in the consumption of sweet dim sum.

In the focus group discussions, it was discovered that increasing numbers of people arebuying “pre-packaged meal boxes” for lunch from chain convenience stores because theyare cheaper than takeaways. 23% of respondents in the survey had purchased “pre-packaged meal boxes that require microwave heating”, up from 15% in 2013. Thepercentage of respondents who have purchased “international-flavour food” (such asJapanese-style curry rice, Korean-style ginseng chicken soup, Singapore-style meat bonetea, etc.) has also increased appreciably from 2013, up from 12% to 22%.

A significant number of focus group participants said that the consumption of frozenproducts specifically made for children is becoming a new trend. Though these productsare more expensive, many parents are willing to buy them because they look attractive,and because the parents believe the raw materials used are more suited to children’snutritional needs. In the survey, 39% of the respondents said they had bought “fast-chilled children’s food”, while 18% said they were buying such food items morefrequently.

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It is worth noting that, with takeaway delivery services becoming more popular andpeople becoming increasingly concerned about their health, some focus groupparticipants said they were eating less instant noodles. The survey found that only 57%of the respondents had bought “instant noodles/rice vermicelli” in the preceding threemonths, a marked decrease from the 78% in the 2013 survey who had done so.Furthermore, only 16% of respondents said they were buying these products morefrequently, a figure outstripped by those for most other main categories of conveniencefood.

Respondents in the 20-30 age group bought more Chinese-style speciality food, pre-packaged meal boxes and international-flavour food than those in other age groups.Respondents in the 31-40 age group purchased significantly more fast-chilled children’s

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food than other age groups did, probably because most have small children at home. Thehigher-income earners are more likely to purchase Chinese-style speciality food, instantcanned food at room temperature, pre-marinated food, pre-packaged meal boxes andfrozen noodles, and less likely to buy instant noodles/rice vermicelli.

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Impact of Takeaways on Convenience Food Sales

The takeaway delivery market has experienced a boom on the Chinese mainland inrecent years. This is likely to be due to the increased choice and variety that takeawaysoffer. This boom has had an effect on the markets for packaged convenience food andtraditional instant food. The survey found that the growing popularity of takeaways hashad a greater impact on the purchase of convenience food for lunch and dinner than onconvenience food bought for breakfast. 38% of respondents agreed with the statement“As takeaways become prevalent, less convenience food (for lunch or dinner) ispurchased than before”, while only 28% agreed with a similar statement regardingbreakfast. However, 19% of respondents still maintained that “given the fast pace of life,more convenience food (for lunch or dinner) is purchased than before”.

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Considerations in Buying Convenience Food

The survey found that the top three factors consumers take into consideration whenbuying convenience food are texture and flavour, brand and word-of-mouthrecommendations, and the manufacturing date and expiry date. Compared with the 2013survey, however, the importance of texture and flavour as a purchasing consideration hasdropped appreciably. The importance of packaging design and small packages, newproducts/new flavours and quality certification in influencing consumers’ decision-makinghas increased since 2013.

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Appendix

Survey Background

Thanks to rapid urbanisation and rising incomes, China’s packaged food market hasgrown steadily over recent years. Today, mainland consumers place more emphasis on“food safety” and “healthy diet”. A more westernised lifestyle also has an impact onpackaged food market development, offering opportunities for Hong Kong andinternational brands keen to enter or further expand into the mainland market.

The economic and social environment on the mainland has undergone significant changeover recent years. To provide a useful reference for Hong Kong companies interested inventuring into the mainland market, HKTDC Research conducted a consumer survey inOctober 2017 to gauge the changes in consumer preferences, spending mentality andtrends of the mainland packaged food market. This updates the findings of a similarstudy commissioned in 2013.

Packaged foods consist of numerous varieties. The survey covers five major categories,namely dairy products, seasoning products and sauces, snacks, grains, oils and driedproducts, and convenience food (including chilled and frozen food).

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Methodology

The survey was carried out during October 2017 in 10 major mainland cities. A total of2,400 consumers were polled by online questionnaire. Before conducting thequestionnaire survey, six consumer focus group discussions were held in Shanghai,Wuhan and Chengdu (two in each city). The objective of the focus group discussions wasto further understand mainland consumers’ spending mentality by way of qualitativeanalysis.

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[1] See Appendix for details of the survey. See China’s Packaged Food Market: MajorConsumer Trends, China’s Packaged Food Market: Defining Characteristics (Part 1) andChina’s Packaged Food Market: Defining Characteristics (Part 2) for details of majorconsumer trends and characteristics of the market.

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