Organic Packaged Food in China

2020 IMPACT

Rebound to growth in 2020, although it remains a small category

In 2020, organic packaged food has seen a rebound from the declines seen in the previous couple of years to see solid growth in retail volume terms. Meanwhile, double-digit growth has been seen in retail current value terms, as in addition to volume growth, prices have seen a significant increase.

Organic baby food popular due to premium positioning rather than organic status

Organic baby food has remained the largest category within organic packaged food in 2020, with organic milk formula achieving the highest sales and also seeing exceptional growth, maintaining the trend seen in the review period. Ever since the melamine milk formula scandal back in 2008, Chinese parents have been careful with the products they give their children, and are happy to spend more if necessary, aiming to give them the best products, leading to growing demand for organic options.

Organic milk turns to growth due to demand for quality and new launches

Unlike organic baby food, which was already seeing strong growth rates prior to COVID-19, organic dairy has turned from current value decline to growth in 2020, due to the better performance seen by organic milk. Increased attention to safety and high quality standards in light of the spread of COVID-19 has increased sales of organic milk, as has falling unit prices – the only organic packaged food category to see price declines.

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