21 Jan 2021
Posted in Consumer
Chinese soups market expected to reach US$112.4m in 2024, says GlobalData
The Chinese soups sector is projected to grow from C¥625.2m (US$91.7m) in 2019 to C¥755.6m (US$112.4m) in 2024 at a compound annual growth rate (CAGR) of 3.9%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘China Soups – Market Assessment and Forecasts to 2024’, reveals that the sector is majorly driven by the frozen soup category, which is forecast to register the fastest value CAGR of 5.7% during 2019–2024. The category is followed by UHT soup, which is expected to record a CAGR of 5.5% during the next five years.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “With the rising disposable incomes, growing middle class and changing consumer preferences, the demand for convenient food such as ready-to-eat soups is on the rise. As consumers lead busy and hectic lifestyles, they increasingly opt for products which are quick, travel-friendly and easy to consume.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the Chinese soups sector in 2019 followed by convenience stores and e-retailers.
In volume terms, the share of China in the global soups sector is expected to remain same at 0.2% in 2024 as it was in 2019. Similarly, the country’s share at the regional level is expected to remain constant at 2.5% in 2024 as it was in 2019.
Unilever, Nestle SA and McCormick were the top three companies in the Chinese soups sector. Knorr and Maggi were the leading brands in the Chinese soups sector in value terms in 2019.
Ms Agarwal concludes: “While the Chinese soups market is growing, it faces a severe challenge in the face of growing health and wellness trend among the consumers. Consequently, an increasing number of Chinese consumers are trying to make healthier food choices by avoiding food items such as salt. To capitalize on this trend, manufacturers are focusing their attention towards offering products with ‘low-sodium’ or ‘MSG free’ claims to appeal to these consumers.”