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Packaged Food in Qingdao

March 2020

The forecast revisions this quarter present a picture of increased negativity almost across the board. Nigeria was one of the few markets to receive an upgrade at the industry level, with several beer categories leading the way. Forecasts vary significantly under different macroeconomic scenarios, but the impact of less quantifiable “soft drivers“ underlines the importance of looking beyond economic factors.

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Key Findings

With century-long history, local beer culture is entrenched in the city

With over 100-year history and German brewing technique, Tsingtao Brewery takes the absolute lead in Qingdao, with ubiquitous presence regardless of the retailing channel. Qingdao citizens regard Tsingtao beer as the pride of the city and Qingdao’s government greatly promotes the beer culture by building a museum and hosting a beer festival. The overwhelming popularity of Tsingtao beer leaves little room for external beer players in Qingdao.

Tsingtao beer is easily accessible regardless of package size or subtypes

As the birthplace of Tsingtao Brewery, Tsingtao beer is widely accessible in Qingdao regardless of retailing channels and formats. Unpackaged Tsingtao beer enjoys high popularity for its freshness. In addition, hypermarkets/ supermarkets offer a wide range of Tsingtao beer SKUs.

Aggressive external players compete in grape wine and crowd out local brands

As a key coastal city in Northern China and an important trading port in Shandong province, Qingdao is the strategic market for wine distributors especially for foreign brands. Compared with beer where a local brand holds the absolute advantage, wine is easier to enter for external brands due to lack of leading brands and limited recognition of local brands.

Local baijiu and yellow wine is highly recommended, supported by local high-quality water

Benefiting from the high-quality water of Laoshan (Mountain Lao), Qingdao has been the major city for yellow wine production in Northern China, enjoying a long history. In addition, local baijiu is highly appreciated for gifting and friends gathering for its high-quality water source.

Packaged food in Qingdao
Qingdao: Leading marine technology centre and popular tourist destination in China
Consumer profile: Generous, natural and seafood lovers
A typical day
Key findings
Abundant resources drive sales of processed seafood
Dried seaweed is particularly popular for its portable packaging
Prevalence of Japanese and Korean cultures boost their snacks
Extensive network of Japanese retailers fuels Japanese packaged food
Packaged peanuts are widely adopted due to abundant resources
Packaged nuts with innovative flavours are popular in Qingdao
Peanut oil is highly recognised by Qingdao citizens as a local speciality
Packaged traditional specialities prevail in Qingdao
Qingdao New Hope Qinpai Dairy Co Ltd
Hu Ji Hua (brand under Yihai Kerry Group)
Qingdao Food Co Ltd
Key takeaways
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