Home » Articles, Asia, Consumer Foodservice, Datagraphics » Major Opportunities in China—But Where?


January 11, 2013

Major Opportunities in China—But Where?

EMI_ChinaCities-v1.3

For many global foodservice operators, the question of expansion into China has moved far beyond “if” and focused instead on “where,” as operators look past the largest cities and try to determine which second- and third-tier markets hold the greatest opportunities. Euromonitor International’s new Cities data offers a glimpse into the metrics that can help answer this question, breaking down GDP, annual disposable income, population growth and other relevant data by major city in the world’s largest markets.

A closer look at China’s cities, in particular, highlights major potential opportunities in consumer foodservice. While Shanghai and Beijing have so far seen the majority of international expansion, for example, cities like Shenzhen, Dongguan and Xiamen all offer higher per-capita annual disposable incomes despite slightly smaller populations. It’s also important to note that China’s incredible size means even some of the country’s second- and third-tier cities have populations that rival entire countries in other world regions. Shanghai’s population is larger than that of Australia or Chile, and Beijing, Chongqing, Tianjin and Guangzhou all out-size Greece, Belgium, Hungary and Sweden.

Of course, population size doesn’t tell the whole story, and foodservice operators also need to go where the money is. In per-capita income terms, many Chinese cities also measure up to major foodservice markets: Ten Chinese cities, including Dongguan, Xiamen, Ningbo, Wenzhou and Suzhou, have higher per-capita disposable income figures than Brazil, which boasted US$150 billion (R$251 billion) in foodservice value in 2011. These figures illustrate the immense potential opportunities present in these markets, many of which are far from saturation in terms of global chained foodservice.

Other key metrics illustrate the full extent of the potential for future growth in these areas. Tianjin, for example, has among the lowest per capita annual disposable income among the richest Chinese cities, but it saw 18% real GDP growth in 2011, higher than Shanghai, Beijing and Guangzhou. Similarly, despite already boasting one of the highest current figures, Xiamen will see a 9% CAGR in per-capita disposable income over 2011-2016, among the highest in major Chinese cities. Finally, Shenzhen will see a 7% CAGR in households over the forecast period, adding over a million new potential consumers in this already thriving city.


« L'innovation est un facteur important de la croissance dans l’industrie des animaux de compagnie au Canada | Main | Crashing Markets and Safe Havens »

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

It is interesting to see the growth curve shift over the past few years, from port-driven economies, to consumer-driven economics.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Subscribe

 RSS Feed

Receive New Posts via Email:

 

Join us on...


View our YouTube Channel Follow Euromonitor on Twitter Become a Fan on Facebook Connect with Euromonitor on LinkedIn

Filter by Category

Filter by Geography

Filter by Industry

Recent Posts

Euromonitor to Speak at CPhI Worldwide

Top Five Soft and Hot Drinks Trends in the Middle East and North Africa

Why do Consumers Prefer Local Products?

Health and Wellness: Global Performance in 2014

Highlights in Health and Wellness in 2014

Asia’s Consumer Markets of the Future

Health and Wellness: Trends in 2014

Weight Management and the Ageing Population Offer Opportunities in Asia Pacific

Las 4 tendencias principales en la industria de Foodservice de Latinoamérica

Emerging Markets Driving Income and Expenditure