China’s Food Industry Parks

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China’s central and local governments have invested significantly in the development of food industry parks, designated areas that facilitate the efficient collaboration of regional food companies. These parks have received a series of supportive policies to foster their growth. In 2024, China’s food industry parks generated RMB 270.78 billion in sales revenue, representing a 13.20% increase. Notably, food industry parks actively share new technologies and equipment to enhance production, product quality, and distribution.

Overview of the Food Industry Park

Screenshot of the Laiyang Food Park from Baidu Maps

A food industrial park comprises a cluster of food industry, related supporting industries, and service institutions within a specific geographical area. It integrates the functions of food production, processing, sales, research and development, and possesses the advantages of industrial clustering efficiency, infrastructure, policy support, and other benefits. Depending on the industry type, food industrial parks can be categorised into comprehensive food industrial parks and specialised food industrial parks.

Development Stages

The beginning

The development of China’s food industry in industrial parks has progressed through four distinct stages. Initially, during the early 1980s, China’s economic system reform paved the way for agricultural industrialisation, creating the foundation for the emergence of food industrial parks. In the early stages, food industrial parks primarily focused on the processing of primary agricultural produce, including grain, oil, meat, poultry, and aquatic products. This led to the formation of regional industrial clusters based on resource advantages. At this stage, park construction was centred around the primary production area of agricultural products, characterised by low industrial concentration and small enterprise scale. While the government initiated efforts to support the development of food industrial parks through policy guidance, overall support was limited.

Reform Phase

The subsequent reform phase marked a significant transformation in China’s food industry. During this phase, the government implemented comprehensive reforms aimed at enhancing the development of food industrial parks. These reforms encompassed policy guidance, targeted support, and other measures designed to foster the growth and prosperity of these parks.

Reform Phase

The subsequent reform phase marked a significant transformation in China’s food industry. During this phase, the government implemented comprehensive reforms aimed at enhancing the development of food industrial parks. These reforms encompassed policy guidance, targeted support, and other measures designed to foster the growth and prosperity of these parks.

In the transformation stage of the 1990s, with the gradual establishment and improvement of the market economy system, food industrial parks began to standardise. The government strengthened the planning and management of industrial parks and improved their standardisation. The industrial park began to develop towards the comprehensive industrial chain. From the beginning of the 21st century to the stage of rapid development from 2015, China’s economy entered a stage of rapid growth, people’s living standards greatly improved, and the requirements for food quality and safety continuously improved. As an important platform for industrial agglomeration and upgrading, food industrial parks entered a stage of rapid development. The food industry park gradually formed a complete industrial chain from raw material cultivation, through processing to sales. At the same time, the number of high-tech food processing projects, such as biological engineering, nutrition and health food, etc., increased.

Today

In the stage of innovation and development from 2015 to now, China’s economy has entered a new normal, and food industry parks are facing the need for transformation and upgrading. Food industrial parks actively introduce new technologies and processes, such as intelligent production lines, automated warehousing systems, big data analysis platforms, etc., to improve food processing efficiency, quality control and supply chain management capabilities. At the same time, the national government promotes green transformation and intelligent upgrading, and supports food industrial parks to move towards high-quality development. In 2024, the sales revenue of China’s food industry parks was RMB 270.78 billion, an increase of 13.20% year-on-year.

The industrial chain

The upstream participants of the industrial chain of the food industrial park are food enterprises, investors, real estate developers, etc. There are various types of food enterprises, including dairy, aquatic products, meat, alcoholic beverages, leisure food, etc. The participants in the middle of the industrial chain mainly include food industrial park operation and management enterprises. The downstream of the industrial chain consists of sales channels, logistics distribution, brand promotion, product marketing, etc.

Current issues

In 2024, the industrial capacity utilisation rate of China’s food manufacturing industry was 69.8%, down 0.46 percentage points year-on-year. From the background, the global economic downturn and the tight trade environment have weakened the growth momentum of food exports. Although domestic consumer demand has gradually recovered under the policy boost, the growth is still weak. Structural contradictions within the industry are prominent, and the supply of production capacity in some areas exceeds market demand, resulting in a decline in capacity utilisation. In addition, the increase in the number of enterprises but the expansion of losses also confirms the current situation of insufficient utilisation of production capacity. The decline in capacity utilisation has squeezed the profits of enterprises, and the operating pressure of some enterprises has increased. However, this change has also forced the industry to accelerate its transformation. The policy level may continue to promote the optimisation of production capacity, support technological innovation and green development, and guide enterprises to focus on high value-added areas. For enterprises, it is necessary to strengthen market research and judgement, optimise the layout of production capacity, improve competitiveness through technological upgrading, product innovation and refined management, gradually eliminate backward production capacity, and achieve a dynamic balance of supply and demand.

Relevant policies

In October 2024, the Ministry of Industry and Information Technology issued the Notice on the Key Cultivation of Traditional Advantageous Food Production Areas and Local Characteristic Food Industries, which proposed to focus on cultivating eligible traditional food production areas and local characteristic food industries, fully exploit the regional resource endowment, clarify the development direction and cultivate excellent At the first level, guide localities to accelerate the formation of local characteristic food industry advantages according to local conditions, release the vitality of traditional industrial development, build characteristic food industry clusters, promote the construction of a strong manufacturing country and a healthy China, cultivate new driving forces for economic development, and drive farmers’ employment and income growth and regional economic development. Through policy support, resource integration, industrial cluster creation and brand promotion and other measures, food industrial parks will achieve high-quality development, improve industrial competitiveness, promote farmers’ income increase and regional economic development, and help rural revitalisation and common prosperity.

Example

Shandong Laiyang Food Industrial Park was established in 2001 and is an important food industry agglomeration area in Shandong Province. The total area of the park is about 5.27 square kms, which is divided into two parts: Food Industrial Park (4.74 square kms) and Longda Industrial Park (0.53 square kms). After more than 20 years of development, it has formed a modern food industry cluster mainly focussing on beverages, juices, dairy, biscuits, canned food, and food additives. There are 68 processing enterprises in the park, including 2 leading national food enterprises (Longda Group and Chunxue Food, both meat processors) and 1 leading provincial enterprise (Longda Meat), which has cultivated 2 backbone enterprises, 8 potential enterprises and 7 growth enterprises. All these terms are officially recognised categories. The category of your organisation determines from which policies you may benefit.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a substantial book that explores the cultural factors that have contributed to China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

China’s Emerging Hamburger Industry

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The hamburger, a fast food originating in Europe and the United States, has gained global popularity. Typically composed of a halved bun, meat, vegetables, sauces, and other ingredients, it has become a cornerstone of Western fast food.

The hamburger industry in China emerged from Western fast food, initially introduced by brands like KFC and McDonald’s. In recent years, driven by the accelerated pace of life and the growing demand for fast food, Western fast food has experienced rapid development in China. Hamburgers serve as the defining component of Western fast food, attracting consumers through their status as a ‘signature product’.

Chinese hamburgers have demonstrated strong market appeal and substantial development potential, solidifying their position as one of the most dynamic categories within the Western fast food industry in China. Brands like Tastien, at the forefront of this development, promote a fusion of Western and Chinese flavours, effectively capturing the ‘Chinese stomach’ through the combination of Chinese flavour and Western standards.

Statistics indicate that in 2024, China’s Western fast food market generated approximately RMB 298.3 billion, with the hamburger market comprising approximately RMB 32 billion. It is projected that in 2025, the Western fast food market will expand to RMB 330 billion, while the hamburger market will reach RMB 44.5 billion. This growth trajectory is anticipated to persist in the subsequent years.

Classification of the Hamburger Industry

Chinese marketeers categorise hamburgers on the type of meat patty:

– Beef burgers

– Chicken burgers

– Fish burgers

– Plant-based burgers

– Other meat burgers; including (Peking) duck burgers; McDonald’s once offered a limited edition of a spam burger with Oreo crumbs in China.

And also by style or region:

– American classic burgers

– Japanese burgers

– Australian and New Zealand burgers

– Mexican-style burgers

– High-end gourmet burgers

The hamburger industry chain

The hamburger industry in China comprises several stages: upstream, middle, and downstream. The upstream sector primarily involves beef, chicken, fish, vegetable meat, and other meats, along with wheat flour, yeast, sugar, oil, lettuce, tomatoes, onions, sauce, cheese, food additives, and other raw materials. Additionally, cold chain transportation and other industries are included. The middle section comprises hamburger brand operators. The downstream sector comprises offline stores and online platforms.

Typically, beef is used in hamburgers, but many Chinese consumers prefer chicken. Furthermore, with the improvement of Chinese consumers’ living standards and the acceleration of their development, they have increasingly prioritised the quality of their diet. Consequently, chicken is perceived as healthier than beef. Chicken production has maintained a steady growth trajectory. In 2024, Chinese chicken production amounted to approximately 15 million metric tons.

The Chinese hamburger industry caters to a diverse consumer base, encompassing individuals of various ages and socioeconomic backgrounds. Notably, young people, particularly teenagers, constitute a significant consumer segment. In 2024, the total population of China was 140.28 million, comprising 943.5 million urban dwellers and 464.78 million rural citizens.

The competitive landscape in the Chinese hamburger market is characterised by several major enterprises. Notably, international fast food chains such as McDonald’s, KFC, and Burger King dominate the market. These leading international fast food brands have set the objective of accelerating the expansion of their stores and cultivating the Chinese market.

In response to the accelerated expansion of Western fast food, the development pace of local Western fast food brands in China has not been hindered. These brands continue to establish themselves in first- and second-tier cities, further intensifying their market presence. Currently, the prominent brands of Chinese hamburgers include Wallace, Tastien, Happy Star Hamburger, Pale Hamburger, Midberg Halal Burger, Malezi Burger, Manlido Fried Chicken Burger, and others.

Various Chinese burgers offered by Tastien; including beancurd burgers, chilli chicken burgers, etc.

Traditional ingredients adapted for hamburgers

An interesting spin-off of the development of Chinese-style hamburgers is that some manufacturer of traditional ingredients have note this a new business opportunity. China’s leading producer of fermented beancurd (furu), Wangzhihe, has developed a version of this condiment for the use on hamburgers. Indeed, shouldn’t Chinese hamburgers be seasoned with Chinese flavours? Follow the link in this paragraph to read more about furu.

Slow Boat: beer + hamburgers

Slow Boat Brewery, a Beijing-based craft brewery, was founded in 2011 by Chandler Jurinka and Daniel Hebert. It started as a small pilot brewery in the mountains outside Beijing and has grown to become one of China’s largest craft brewers by production capacity. The brewery is known for its small-batch, creative beers and its dedication to promoting the Chinese craft beer movement. Its outlets also serve a broad range of hamburgers. Both the beer and the accompanying food tries to gear to the Chinese palate while also retaining a sufficient degree of foreignness.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a substantial book that explores the cultural factors that have contributed to China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

A Chinese innovation: rice from potatoes

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Recently, a special production line in Zhaotong, Yunnan Province, has created the world’s first potato rice. It is understood that this production line that converts potatoes into ‘rice’ is the result of more than five years of research and development led by Wu Qi, an academician of the Chinese Academy of Sciences and a polymeric physical chemist. This is not only the first production line in China to turn fresh potatoes into dried rice, but also the first in the world.

Nutrition

According to the report, potato rice retains 90% of the nutrients of potatoes and the protein content is 27% higher than that of traditional refined rice noodles. After the first batch of potato rice was launched, Zhaotong Mekong conducted product stability tests among people with diabetes and obesity. Judging from the situation of regional sales tests, there is a tendency for supply to exceed demand. After more than a month of trial sales, the repurchase rate of diabetics and people who lose weight is relatively high.

Easy to handle

Because potato rice has been processed at high temperature and high pressure, consumers can steam the potato rice without washing it. In addition, the amount of water and time required to steam potato rice is much less than the amount of water and time required to steam white rice. Some consumers feedback that potato rice is convenient to cook, and it not only feels close to rice in the mouth, but also smells like potatoes.

Price

At present, the price of potato rice is still higher than that of ordinary rice. According to the official platform of Zhaotong Meikang Agricultural Company, the price of potato rice is RMB 66 per box of 950g.

Top producer

As one of the world’s largest potato producers, China has ranked first in the world for many years. For Chinese consumers, the research on potato rice is expected to make high-yield potatoes a staple food for people, which will help solve the problem of food security. For fresh potatoes with a large yield, this new form of potatoes can solve the problem that fresh potatoes have a short storage time and are not conducive to preservation to a certain extent. potato rice can reduce the need for ventilation and climate control during storage, and it is also more convenient for logistics and transportation.

The process

Wu Qi’s team integrates macromolecular physics theory, food macromolecular processing and polymer extrusion granulation technology, focussing on the research and development of high-water extrusion and reorganisation technology of plant polysaccharides and protein complex systems. Through precise control of temperature, humidity and enzymatic time, fresh potatoes are transformed into diameter 0.5 -1mm rice granular finished product. Simply put, the research team changed the characteristics of macromolecules from the physical level, reshaped the starch chain of potato crops, and turned fresh potatoes into potato rice with good taste.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a substantial book that explores the cultural factors that have contributed to China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

Hunan cuisine: how regional cuisines are marketed in China

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Hunan cuisine, known in China as Xiang Cuisine, Xiang being the literary name of Hunan Province, is one of China’s more famous cuisines. It is characterised by its liberal use of chili peppers and garlic, but also by its use of very fresh ingredients. A typical way of preparing and serving dishes in Hunan is the ‘dry pan’ (ganguo). Those dishes are served in an iron pan on a fire to keep it hot.

Hunan’s capital Changsha is foodies’ paradise. As a patron of this blog, you know that food is the central concept of Chinese culture. Food is available in abundance everywhere. However, there are still cities in China that even Chinese refer to as places to go for food lovers, and Changsha is one of them.

Changsha is also very centrally located in the heart of China. In Europe, all roads may lead to Rome, but in China they lead to Changsha. Changsha is a major infrastructure hub. This highly facilitates the export of the local cuisine to all corners of the nation, and beyond its borders. However, in this post, I will restrict my story to the situation of Hunan cuisine within China in 2024.

Regions

In an earlier post, I introduced the major food regions of China. The following table shows the percentage of Hunan restaurants in China in each region.

These figures confirm that fire food is still more appreciated in Southern China than in the north.

Cities

At a lower level, Chinese cities are catogorise by function and size. First tier cities are the cities directly under the State Council (Beijing, Tianjin, Shanghai and Chongqing). New first tier cities are the capitals of provinces and autonomous regions. The remaining cities are categorised by size. The following table shows the percentage of Hunan restaurants per urban category.

We can see that Hunan cuisine is most popular in regional capitals and smaller regional cities. A possible explanation could be that cities in the south of China tend to be smaller, with the largest cities concentrated in the north. E.g., of the four first tier cities, only Chongqing people prefer spicy food.

Province/autonomous region

I am also adding a map indicating the number of Hunan restaurants per province and autonomous region. Dark red indicates a higher number.

The top regions, Hunan (obviously) and Guangdong are indicate with percentages, 19.6% and 17.8%, respectively. Guangdong is a special region, adjacent to Hong Kong, where many emigrés from other parts of China are living. I presume that Guangdong is the home of quite a few people from Hunan.

I could go even deeper, including, e.g., the regional distribution of the various Hunan restaurant chains. However, that information would be unsuitable for a post like this. However, I will be able to provide an in-depth study upon request.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a substantial book that explores the cultural factors that have contributed to China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

Chinese Dishes Reimagined in Coffee and Alcohol

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During a recent excursion through Shanxi, Henan, and Hebei provinces, we extended our stay in Luoyang, a third-tier city in northern Henan province. Luoyang served as the capital of China during the Sui (581–618) and Tang (618–907) dynasties. One evening, as we journeyed to a restaurant, we encountered an intriguing bar en route, advertising with coffee-based cocktails. Given the early hour, we decided to explore this establishment. This proved to be an auspicious decision. We indulged in several highly innovative cocktails.

The name of the bar, Linshi, held intrigue, translating to “Temporary.” Founded by Ma Lekai, an award-winning Chinese barista, the establishment boasts diplomas and accolades adorning its walls.

The colour scheme of the bar, predominantly yellow, is complemented by shades of orange and brown, creating a striking contrast with the greyish hues. We perused the menu with the intention of sampling some captivating cocktails.

Americano

Given my preference for Americanos, I opted for a cocktail bearing the same name. The Chinese translation, Meiguolao, translates to “Yankee,” likely a subtle reference. The recipe incorporates a martini base, complemented by exceptionally light coffee, even lighter than a traditional Americano. The light coffee imparted a slightly sour character, resulting in a martini with a bitter aftertaste of coffee. Personally, I found this combination to be an ideal match.

Kiwi

Another member of our party sampled a Luanchuan kiwi (Luanchan is a region in Northwest China where kiwis are cultivated): pureed kiwi infused with coffee and a touch of Luoyang’s local liquor, Dukang. This combination required some time to fully appreciate, but ultimately, it yielded a satisfactory taste experience.

Dish as inspiration

The staff is consistently experimenting with new recipes. As I was likely the first foreign visitor, they allowed our group to sample a newly designed cocktail: Hulatang, Hula Soup. Hulatang is a slightly sour and spicy soup, a traditional specialty of Luoyang. Linshi has once again utilised the sour undertone of soft coffee, combined with Dukang and a touch of pepper for the hot undertone. For me, this was also a potential success cocktail. It is also a remarkable example of recreating a traditional dish in a contemporary manner.

Clientele

Linshi operates in the high-end segment. However, according to the manager of this branch (one of four in Luoyang), the business is performing well. Linshi was established in 2014, making it exactly 10 years old when we visited. The relatively young clientele tends to visit later in the evening. Linshi is open until 1 a.m. When I return to Luoyang, I will certainly make a visit to this establishment.

If you like this post, you may also want to look at this post introducing medicinal cocktails in China.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a substantial book that explores the cultural factors that have contributed to China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

New Food Ingredient: The Rise of Stevia Polyphenols

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n the Announcement No. 1 of 2025 of the Health Commission (the former Ministry of Health of China) officially approved stevia polyphenols as a new food raw material, alongside stevia glycosides, as the two “star ingredients” of stevia.

For an extended period, stevia has garnered significant attention due to its abundance of stevia glycosides, a natural sweetener, and its role as a crucial sugar substitute in the food industry. The legalisation of stevia polyphenols has undoubtedly paved the way for the expanded application of stevia. Its antioxidant and multifaceted health benefits anticipate its emergence as a preferred choice in the domains of food and healthcare products, potentially surpassing the popularity of stevia glycosides.

Originating from South America, stevia was introduced to China in the 1970s and has since gained widespread cultivation in Hebei, Gansu, Shandong, and other regions. The sweetness of stevia glycosides in its leaves is approximately 200-300 times greater than sucrose, making it the cornerstone of natural sugar substitutes. However, during the extraction process of stevia glycosides, a “side product” emerged—stevia polyphenols.

Stevia polyphenols constitute 2%-4% of the dried stevia leaves, primarily comprising chlorogenic acid, caffeic acid, quercetin, and other active ingredients. High-purity products are obtained through extraction technology, resulting in a total polyphenol content exceeding 40%. The polyphenols are derived from stevia leaves through ethanol extraction, filtration, purification, concentration, drying, and other processes.

In 2025, stevia polyphenols officially became a new food raw material in China, ushering in a novel trajectory for the application of stevia in the food sector.

What are plant polyphenols?

Plant polyphenols are secondary metabolites synthesised by plants during their growth. They constitute a diverse class of compounds characterised by the presence of multiple phenolic hydroxyl structures. These compounds are composed of benzene ring structures, each bearing one or more hydroxyl (-OH) groups on each benzene ring, conferring them with robust antioxidant properties and the ability to neutralise free radicals.

Plant polyphenols can be categorised based on their chemical structure, primarily comprising flavonoids, proanthocyanins, hydrolyzed tannins, simple phenolic acids, and other major categories.

Plant polyphenols serve as essential nutrients produced through photosynthesis, playing a multifaceted role within the plant body. These compounds contribute to disease resistance, pigment formation, structural support, and regulation of the growth cycle. Polyphenols are typically stored in various plant parts, including roots, stems, leaves, flowers, fruits, and epidermis.

Which foods are rich in polyphenols?

Plant polyphenols constitute a diverse class of natural compounds widely distributed in plants. Their content ranks second only to lignin, cellulose, and hemicellulose. Over 600 plant species are known to contain higher levels of polyphenols compared to other compounds.

In daily life, foods rich in polyphenols include various fruits (e.g., apple peel, grape peel), vegetables, tea, coffee, seeds, grains, beans, olive oil by-products, cocoa, vanilla, and spices.

Related extracts exhibit remarkable diversity, such as apple polyphenols, pomegranate polyphenols, sour cherry polyphenols, blueberry anthocyanins, grape resveratrol, green tea polyphenols, coffee chlorogenic acid, and dark chocolate cocoa polyphenols, among others.

Which newly approved ingredients are polyphenols?

In addition to stevia polyphenols, numerous new food sources primarily contain polyphenols or polyphenol derivatives.

Sugarcane polyphenols are among the recently approved food ingredients. Sugarcane polyphenols are naturally extracted compounds from sugarcane. The primary constituents include total polyphenols, total flavonoids, and proanthocyanins, which possess substantial biological activity and commercial value.

A recent study demonstrated that this polyphenol exhibits potent inhibitory effects on α-glucosidase and α-amylase enzymes in the small intestine. This action effectively retards the degradation of carbohydrates within the digestive tract, thereby reducing the absorption rate of monosaccharides such as glucose and fructose. Consequently, it contributes to sugar control. Primarily, this polyphenol is utilised in the development of low-glycemic index (GI) food products.

Shanghai TPM, a subsidiary of Australian International Ingredients, has recently declared sugarcane polyphenol as a new food raw material. Their product portfolio encompasses Phytolin@phenol® sugarcane polyphenols and Polynol@phenol@sugarcane polyphenol food ingredients.

Milk tea by Hankou Erchang contains phytolin

Phytolin@

Phytolin® has emerged as an innovative raw material in the weight management sector, serving as a sugar substitute and effective sugar control agent.

Catechin

Catechin, a newly approved food raw material in 2023, finds applications in beverages and candies. When consumed in conjunction with gallocate (EGCG) as outlined in Announcement No. 17 of 2010, the recommended daily intake is limited to ≤300 mg (measured in total catechin content).

Catechin constitutes the primary polyphenol in tea, comprising 12% to 24% of the dry weight and 60% to 80% of the total polyphenol content. It is predominantly found in green tea, black tea, and oolong tea varieties.

The catechin family comprises four main types (C): epigallic catechic acid (EGCG), pyglytic catechin (EGC), capechic acid (ECG), and epicatechin (EC).

In Japan, catechin has gained recognition as a functional raw material for weight management, a concept that consumers highly value. This recognition may be attributed to the success of Huawang, a company that introduced Healthia green tea in 2003. Since then, Huawang has sold an impressive 3.1 billion bottles of Healthia green tea over a 21-year period, as of the end of 2024.

Tea polyphenols, also known as polyphenols, are polyphenolic compounds primarily extracted from tea leaves as food ingredients. As a food additive antioxidant, they are permitted in over 60 sub-food categories in GB 2760, including oils and fats, jams, nuts, pastries, meat products, aquatic products, canned foods, seasonings, beverages, and puffed foods.

The permitted addition range is between 0.1g/kg and 0.8g/kg, with varying allowable amounts for different product categories. The quality standard adheres to the national standard “GB 1886.211-2016 Food Safety National Standard Food Additives Tea Polyphenols”.

These polyphenolic ingredients can be utilised in both domestic and international food applications. However, foreign dietary supplements often employ a wider range and more diverse types of polyphenol food ingredients.

Apple polyphenols

Apple polyphenols are primarily derived from apple peels, particularly immature green apples, which are rich in polyphenols. The polyphenol content in immature fruits is approximately 10 times higher than that of ripe fruits. Apple polyphenols encompass a diverse range of phenols, including chlorogenic acid, catechin, epicatechin, apple condensed tannin, root peel, root skin, and anthocyanin.

BGG

BGG is a reputable supplier of apple polyphenol food ingredients. They possess the process of extracting apple polyphenols from immature green apples and have obtained intellectual property protection in China and the United States. Furthermore, BGG has conducted clinical trials investigating the role of apple polyphenols in weight management and has received strong scientific research endorsement. Notably, BGG’s apple polyphenols are marketed in the Korean market, where their jelly bars and oral solutions have gained popularity among consumers.

As a byproduct of the wine and juice industry, grape seeds contain a high polyphenol content, ranging from 60 to 70%. The primary polyphenols include catechins, epicatechins, proanthocyanins, and proanthocyanidins (OPC), which are the core active ingredients. Grape seed polyphenols have garnered significant market recognition and have long been the cornerstone of the oral beauty market. Notably, the 2024 Swisse grape seed niacinamide tablets available on Taobao Online stand out in comparison to similar products.

Lychee polyphenols

In addition to the aforementioned polyphenols, another polyphenol is extracted from lychees. Lychee polyphenols are a specific type of polyphenolic substance derived from lychees. Different parts of lychees, such as the flesh, kernels, and shells, contain a diverse range of polyphenols. The polyphenols found in lychee fruit primarily consist of protocatechic acid, catechins, chlorogenic acid, caffeic acid, epicatechins, butylic acid, p-coumic acid, rutin, valeric acid, and others.

Numerous products utilise this raw material. For instance, lychee polyphenol vegetarian capsules are designed to provide a dual effect of “fatigue reduction and weight management.” Low molecular weight polyphenols were obtained through low-temperature extraction, resulting in a threefold increase in absorption rate. Trial testing has been conducted to validate the efficacy of this process.

Polyphenol compounds

Concurrently, the application of single polyphenol ingredients has also emerged as an optimistic direction for certain enterprises.

For example, a dietary supplement launched by one such enterprise incorporates pomegranate extract, keratin, turmeric, bitter orange (fruit), green tea (leaf extract), grape extract (skin and seeds), organic blueberry fruit extract, apple extract, wild cherry berry extract (berry), olive extract (fruit), acai berry (fruit), Noli (fruit), alfalfa (whole plant), hawthorn berry powder, and celery extract (seeds).

The product comprises over 10 components, including pomegranate, turmeric, and blueberry, that are rich in plant polyphenols. These polyphenols are amplified through synergy, emphasising plant-based and natural ingredients.

In light of the approval of stevia polyphenols, more polyphenols are anticipated to be considered for inclusion in the list of new food ingredients in the future. Polyphenols, due to their high purity and antioxidant properties, are expected to gain popularity as a raw material in the food and health food industries. They will play a significant role in dietary supplements, beverages, snacks, dairy products, and other sectors.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a significant book that delves into the cultural factors driving China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

Future Prospects for Sports Nutrition in China by 2028

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Another innovation on this site: a direct translation of an interesting article in the Chinese food industry press. This time: an interview with Bai Houzeng, Director of the Sports and Nutritional Food Branch of the Chinese Society of Food Science and Technology

Introduction

After more than 20 years of accumulation and development, China’s sports and nutritional food industry has sunk from the “pyramid” professional competitive market to the mass fitness market, and the products have also developed from the original protein powder to today’s diversified products such as protein bars, creatine powder, electrolyte drinks and energy glue. According to the In-depth Market Analysis and Development Trend Forecast Report of China’s Sports Nutritional Food Industry from 2024 to 2030, it is expected that by 2027, the number of people who regular visit sport schools in China will rise to 460 million, and the demand for sports nutrition food will be further increased. How to continue to innovate in the fierce competition, cultivate new productivity, and constantly meet the increasingly diversified consumer demand has become a new issue facing the development of the sports nutrition food industry. At the beginning of the New Year, the reporter interviewed Bai Houzeng, director of the Sports Nutrition Food Branch of the Chinese Society of Food Science and Technology. From the comment of this practitioner who has worked hard in the field of sports nutrition food for more than 20 years, the development vein of the sports nutrition food industry can be clearly seen. In the development of the industry, scientific and technological innovation has always accompanied him and escorted the industry.

Kangbite ad

Q: What stages of development have China’s sports and nutritional food industry gone through?

Bai Houzeng: China’s sports nutrition food industry has gone through the initial stage, growth stage and rapid development stage, and is currently in the stage of rapid development.

The initial stage of the sports nutrition food industry began in the late 1980s. With the vigourous development of the Olympic economy and national fitness, the sports nutrition food industry began to enter China. In the early development of China’s sports and nutritional food industry, it was mainly concentrated in the professional athletes group, with a single product type and a relatively small market scale. In 2001, Kangbite, China’s first professional sports nutrition food enterprise integrating research and development, production and sales, was established, taking the lead in introducing the scientific concept of sports nutrition into the field of competitive sports.

At the beginning of the 21st century, with the increase in public health awareness and the growth of the sports population, sports nutrition began to expand to a wider range of fitness enthusiasts and the mass market. Through the joint efforts of the science and technology community and the industry community, the construction of sports nutrition food standards was launched in 2004. In 2015, the National Standard for Food Safety General Rules for Sports Nutritional Food was released. In 2017, Compit became the first enterprise in China to obtain a license for the production of sports nutrition food and produce its own brand products. In 2019, sports nutritional food was included in the China Sports Industry Catalogue. Since then, China’s sports nutritional food industry has entered the stage of standardised development. The types and quantities of sports nutritional food have grown rapidly, and the market scale has been expanding.

In recent years, thanks to the support of national policies and the promotion of the “Healthy China” strategy, China’s sports and nutritional food market has entered a stage of rapid development. Domestic and foreign brands have entered the market one after another. The demand for subdivisions is increasingly vigourous, and the market scale continues to expand.

Q: Can you talk about the current situation and problems of the development of China’s sports nutrition food industry?

Bai Hou Zeng: After more than 20 years of accumulation and precipitation, China’s sports nutrition food industry has formed a relatively complete industrial chain, with a rich variety of products in the market and huge market potential.

At present, China’s sports and nutritional food market is growing rapidly, and the development of categories is showing a global trend. The top three categories in China’s sports nutrition food market are protein powder, sports drinks and energy bars. This is different from foreign markets. For example, the top three categories in the U.S. sports nutrition food market are sports drinks, protein powders, energy bars and gels (gel).

According to relevant data, from 2017 to 2023, the market size of energy bars and protein bars in China increased from RMB 1.31 billion to RMB 2.45 billion, and it is expected to reach RMB 4.513 billion in 2028. Relevant data predicts that from 2022 to 2028, among the world’s 18 major sports and nutritional food markets, China’s market scale is predicted to rank sixth in the world, with an average compound annual growth rate of up to 40%, which is far higher than the average growth rate of the global sports and nutritional food industry.

Q: In recent years, the development of China’s sports nutrition food industry has pressed the “fast forward button”. What do you think are the main factors that promote industrial development?

Bai Hou Zeng: The rapid development of China’s sports and nutritional food industry is mainly due to the support of policies, the increasing demand for mass consumption and the continuous improvement of standards.

In terms of policy support, in recent years, “Several Opinions on Promoting the Development of the Health Service Industry”, “Healthy China 2030” Planning Outline” and “Guiding Opinions on Promoting the Healthy Development of the Food Industry” have been issued successively. In July 2021, the State Council issued the National Fitness Plan (2021-2025), which promoted the high-quality development of the sports nutrition food industry at the national level. In 2022, the “Opinions on Building a Higher-level National Fitness Public Service System” issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council pointed out that by 2025, a higher-level national fitness public service system will be basically established, and the per capita stadium area will reach 2.6 square metres, and you will often participate in sports The proportion of people exercising reached 38.5%. By 2035, a universal fitness public service system suitable for modern socialist countries will be fully established, and the proportion of people who regularly participate in physical exercise will reach more than 45%. Sports, fitness and sports and leisure will become a common way of life, and people’s physical literacy and health level will be at the forefront of the world.

At the same time, the increasing demand of the masses is also an important factor in the rapid development of the sports and nutritional food industry. With the help of policies, attention from all walks of life to the sports industry continues to increase, and the enthusiasm of the people to participate in sports continues to rise. Data shows that the proportion of people who regularly participate in physical exercise in China has reached 37.2%. By the end of 2023, China’s per capita stadium area had reached 2.89 square metres, which had exceeded the standard of 2.6 square metres per capita planned by the 14th Five-Year Plan. As more and more people participate in various sports and fitness activities, the demand for effective sports nutritional food solutions is also increasing.

In addition, the continuous improvement of standards has also promoted the development of the sports and nutritional food industry. The General Provisions of the National Standard for Food Safety and Sports Nutritional Food clearly states that China defines sports nutritional food as the physiological and metabolic status, exercise ability and the requirements of the sports population (referring to the people who participate in physical exercise 3 or more times a week, the duration of 30 minutes or more each time, and the intensity of each exercise reaches medium or above) Food specially processed for the special needs of certain nutrients. In addition, the “Quality Management Standard for Food Production Enterprises Part 1: Sports Nutritional Food” was implemented in 2022. This is the first local standard for quality management standards classified by food category names issued by Beijing, and it is also the first quality management standard formulated for sports and nutritional food production enterprises in China. It plays an important guiding role in standardising the production behaviour of sports nutritional food production enterprises in Beijing, improving the quality management ability and integrity awareness of enterprises, improving the quality and safety level of sports nutritional food, and promoting the high-quality development of the industry.

Q: What do you think is the core of the development of China’s sports nutrition food industry?

Bai Houzeng: In the development of China’s sports and nutritional food industry, the core of scientific and technological innovation has always been indispensable. It can be said that scientific and technological innovation is the “life gate” of the sports and nutritional food industry.

The consumer group of sports nutritional food extends from professional athletes to the mass fitness group, but the products are not simple “copying”, and innovation is more difficult. Because the needs of the mass fitness group are different from those of professional athletes, when enterprises carry out product research and development and innovation, they should start from the market demand and comprehensively consider the taste, nutritional distribution ratio, cost and application scenarios. Especially for different sports scenarios, the products are very different. For example, although marathon runners and cross-country runners are all running, the products designed and developed are quite different. What is particularly impressive is the process of successful research and development of energy glue by domestic enterprises. From contact concept, research and development innovation to product implementation, it has been polished for 1 year. The penetration rate of energy glue in marathons is as high as 86%.

With the help of policies, the escort of standards, the support of science and technology, the drive of innovation, and adhering to the original intention of “making people’s lives better”, China’s sports and nutritional food industry is making great strides into an era of great development.

Source: 2025-02-10 China Food News

The value of the 2025 Chinese market for sports drinks was RMB 28.1 billion; up 8.5%.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a significant book that delves into the cultural factors driving China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

How Local Brands Challenge Coca Cola’s Dominance in China

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Undoubtedly, Coca Cola is the top-selling soft drink globally. Introduced in 1886, it has become a household name in over 200 countries. However, its immense popularity has also made it the most imitated drink worldwide. We’re all familiar with the rivalry between Coca Cola and Pepsi.

Introduction to China

Coca Cola arrived in China at a time when Chinese were eager to experience the delightful products of Western fast food imagination they had read about but yet to taste. KFC’s hot wings were an instant hit, but the introduction of Coca Cola in China didn’t go as smoothly. Initially, Chinese consumers found the taste reminiscent of medicine. Indeed, the typical cola flavour bears a resemblance to some traditional Chinese medicinal (TCM) potions. Interestingly, both colas were perceived as medicines from the late 19th century onwards. In fact, some Chinese food authorities were hesitant to make the beverage accessible to consumers of all ages, concerned about potential harm to children. However, these initial obstacles soon vanished, and Coca Cola gained immense popularity in China, just like anywhere else.

Imitations

It was only a matter of time before the Chinese imitation industry began churning out one local cola after another. Most of these attempts failed and were short-lived, while a few managed to gain traction and survive for some time. The leading imitation is Future Cola by Wahaha Group, a prominent beverage manufacturer headquartered in Hangzhou, Zhejiang. Wahaha began producing its own cola in 1998. Feichang Kele (literally ‘Extraordinary Cola,’ translated into English as Future Cola) closely replicated the colors and other features of Coca Cola. Leveraging Wahaha’s extensive distribution network, Future Cola dominates rural China and its second- and third-tier cities. In 2003, its sales amounted to a staggering 620 million liters.

Wahaha’s advertisements adopt a nationalistic tone. For instance, their copy promotes Future Cola as “Chinese people’s own cola,” encouraging consumers to choose it over Coke or Pepsi. This aligns perfectly with the nationalist trend (guochao) of the 2020s. Future Cola’s focus on rural areas contributed to its high penetration at lower costs. Additionally, it leveraged celebrity advertising to enhance its brand image. Its penetration pricing made it an affordable alternative to its rivals, especially in more price-sensitive rural regions.

A major brand is Tianfu Cola, produced in Chongqing, has gained a new herbal flavour thanks to the cooperation of a domestic time-honoured brand. Tianfu Cola has a history of over 40 years and is a taste memory for several generations of Chinese people. Because of the herbal ingredients in the drink, some consumers even used to consider the cola as a ‘remedy’ for colds back in the day. Its secret lay in a special formula, which drew on traditional Chinese medicine and added several herbs, such as white peony root and Chinese angelica. Upon its launch in 1981, Tianfu Cola quickly won the favour of consumers, with annual sales reaching over 200,000 metric tons, accounting for about 75% of China’s cola consumption.

In 2021, Tianfu Cola upgraded its packaging design, brand positioning and marketing strategies, and added more healthy herbal plants to create a unique Chinese cola.

In the remainder of this post, I aim to analyse various local cola brands across different categories.

Fruit: To address the medicinal taste issue, several manufacturers introduced fruity flavours to their colas. Examples include orange cola, blackcurrant cola, and purple plum cola.

Orange Cola
Blackcurrant Cola
Purple Plum Cola

Medicine: Other producers capitalised on the medicinal aspect and incorporated TCM herbs into their colas, positioning them as health beverages. For instance, Lingzhi Cola (lingzhi – reishi – the ganoderma fungus), gingko cola, and maifanshi cola (maifanshi is a stone rich in minerals) are among these products.

Lingzhi Cola
Gingko Cola
Maifanshi Cola

Nobility: Adding a touch of nobility to your drink can elevate its perceived high-end appeal. Brands like Empress Cola, High Fortune Cola, High Heaven Cola, and of course, the top-tier Future Cola exemplify this concept.

Empress Cola
High Heaven Cola
High Fortune Cola

Famous location: Some cola brands associate themselves with specific locations, adding a sense of place and identity to their products. Qingdao, a prominent port city in Shandong, is renowned for its Tsingtao Beer and Laoshan Mineral Water, which is also used to produce Tsingtao Beer. The region once produced its own Qingdao Cola and Laoshan Cola, but Qingdao Cola was not produced by the brewery but rather used that name to entice consumers.

Qingdao Cola
Laoshan Cola

A hint of Heineken

Kexi Cola

My favourite imitation cola has never achieved significant success, but the makers certainly put in their best effort. The brand name was Kexi Kele, which literally translates to ‘Happy Cola.’ However, this name subtly hints at Xili Beer, the Chinese name for Heineken Beer. A mere glance at the label reveals the striking resemblance. Kexi Kele was produced by a small brewery in Harbin, the capital of Heilongjiang. In today’s China, that combination of brand name and label would likely face challenges, but I can appreciate the initiative.

Vinegar Cola – a healthy choice (?)

This is a special type of Chinese Cola. It is produced in Shanxi province, where I found during a trip through that province in November 2024. Shanxi is famous for its vinegar, so it is no surprise to find this version of Cola there. Moreover, vinegar beverages like apple vinegar have been in vogue in China since around 2022 as health beverages.

This post does not encompass all Chinese imitation colas. I have compiled a list of 21 different labels, and I don’t exclude the possibility of adding more in the future. So, please keep an eye on this post for any future updates.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a significant book that delves into the cultural factors driving China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

Short post: Chinese co-branding

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Today I am introducing a new type of post: a short report on a very specific issue that I believe to be of lasting interest.

I am starting with a recent example of co-branding Chinese style.

It is a cooperation between condiment maker Hubang’s chili sauce and Langxianwei’s potato swirls, resulting in a new co-branded product: chili flavoured potato swirls.

An interesting cultural aspect of this case is that the co-branding is also implemented in the logo, as is shown in the left side of the picture.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

2024 Catering Industry Innovation Report

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In recent years, China’s catering industry has been growing continuously. In 2023, the recovery speed of catering far exceeded that of other commodity retail sectors, and the momentum will continue in 2024. According to the data of the National Bureau of Statistics, the national catering revenue was about RMB 3.5 trillion yuan, an increase of 6.6% year-on-year.

The scale of catering brands is increasing day by day, and the pace of chain-isation is accelerating. The proportion of brands with more than 100 stores is increasing year by year. Moreover, the scale of the takeaway market is about RMB 1.2 trillion, which has become an important growth engine of the catering market.

Background of innovation

  • Consumption upgrade: quality demand has improved, consumers pay attention to catering quality, experience needs are also diversified, and special theme restaurants are becoming more and more popular.
  • Intensification of competition: The competition in the industry is fierce, and cross-industry competition is also under pressure, which promotes the continuous innovation of catering enterprises.
  • Technological progress: The Internet and the application of intelligent devices bring new opportunities to the catering industry.
  • Cultural integration: Different cultural exchanges provide materials for catering innovation.
  • Popularisation of healthy eating: Consumers’ requirements for catering health are increasing.

Direction of Innovation and achievements

Diners enjoy healthy and colourful food at Fengxiyuan
  • Product innovation: integrating multiculturalism, combining scientific and technological elements, paying attention to healthy nutrition, and exploring special ingredients. There are excellent innovative restaurants such as Coucou Hot Pot, Taishan Food Festival, Fengxiyuan Restaurant, Western fast food brands, etc.
  • Service innovation: personalised services and intelligent services. The children’s meal service of Xibei Noodle Village, the convenience and innovation of hometown chicken, the diversified service of Naixue‘s tea, and the intelligent service of Haidilao and Hefu Noodles are all excellent.
  • Marketing innovation: social media marketing, experience marketing, cross-border cooperation. Tastin’s social marketing, the experience activities of hometown chicken and Xibei noodle village, and cross-border cooperation such as Laowang and Link are all very eye-catching.
  • Business model innovation: popularisation of dining + drinking mode, omni-channel model, new retail + catering model, special store model, introduction of catering in home stores, etc.

Future development trends and prospects

  • Business model and category development: the degree of chain-isation and branding has been improved, and the category has been subdivided and characterised by operation.
  • Consumption experience and service: omni-channel operation has become the norm, and scenario-oriented and immersive experience are favoured.
  • Product innovation and supply chain: healthy dish innovation, intelligent and digital supply chain management.
  • Market competition and industry pattern: the potential of market failure is huge, and the brand’s overseas exit is accelerating.

Conclusion: China’s catering industry is booming and continues to innovate. Catering brands actively seek change and constantly open up new paths. In the future, catering enterprises should keep pace with the times, continue to innovate, and meet the diversified needs of consumers. Super brand strategic consulting will also contribute to the prosperity and development of China’s catering industry.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.