China's food consumption in urban areas is set to keep its 4.6 percent compound annual growth over the next 10 years to hit US.1 trillion in 2026 as urbanization continues and disposable incomes rise, according to a joint research.
Higher spending on packaged foods and a shift by consumers toward premium products are likely to lift overall expenditure, a joint report by Bright Food Group and Netherlands-based Rabobank said yesterday.
However, the annual consumption volume of dairy products eased from the exponential growth between 2000 and 2008, the report said, adding that niche segments such as butter and cheese, usually seen as high value-added products, still have a large growth potential.
Health and nutritional food, infant formula and high-quality products are also set to benefit from demographic changes in the coming years.
The report cautioned that the yuan's depreciation trend would cut the overall profit in China's dairy industry by an average 15 percent next year.