New Food Ingredient: The Rise of Stevia Polyphenols

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

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.

2024 Catering Industry Innovation Report

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.

The Rise of Herbal Health Waters in China

sugar-free tea beverage undoubtedly were the major trend in the Chinese beverage industry in 2023. Tea drinks in general are healthier and more refreshing than all those funny bubble teas that Chinese consumers started drinking in the years before.

With the growing concern for health, moving on to sugar-free tea beverages was a logical step. Data show that the year-on-year growth rate of sugar-free tea in 2023 was as high as 110%, the market size exceeded RMB 10 billion. That year saw the introduction of 64 new sugar-free tea products.

It seems that the next step for 2024 is adding more nutritious ingredients, in particular herbal extracts from TCM plants. This also fits in with the ongoing ‘national trend’ (guochao), which explains why the new drinks category is referred to as ‘Chinese health water’ (zhongshi yangshengshui). A market survey dating 2024 predicts that the compound annual growth rate will exceed 88% over the next five years. By 2028, sales are expected to exceed RMB 10 billion.

It is too early to say that these health waters will canabalise the entire market for sugar-free tea drinks, but they will certainly take a considerable part of it.

Let’s look at a few of health waters that are already on the market.

Genki Forrest – red bean and barley
Haowangshui – dried orange peel
Keyang – green bean

Nestlé

Foreign players have also noted the TCM trend. Nestlé China has launched two new beverages: white mulberry oolong and hawthorn tangerine peel in 2024.

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.

Innovative Cheese Snacks Designed for Children

Cheese consumption has been increasing at an incredible speed in China during the past few years, considering that not so long ago, almost all Chinese were abhorred about the smell of cheese. Cheese supply volume in China has surged from 140,000 tons to 270,000 tons during the period 2017-2022. This figure is expected to maintain double-digit growth, far above the world average for the coming years.

Although the average cheese consumption in China is far below many Western countries as well as Japan and Korea, it has significantly increased from 80g/person/year in 2017 to 130g/person/year in 2021. At the 2022 China Cheese Development Summit Forum, the Dairy Association of China released an action plan, proposing that the national cheese production would reach 500,000 tons by 2025. Much of the cheese sold in China is processed, but non-processed is increasing.

A uniquely Chinese development is that Chinese cheese producers are focusing their own R&D on developing one-bite cheese snacks, for all ages, but in particular for children. This is partly a result of the pressure of the Chinese authorities to increase dairy consumption among children. Such products include cheese sticks, cheese slices, cheese strips, etc. Cheese sticks form the most popular type, which was first launched by Milkana, but was popularized by Milkground. Presently, driven by the increasingly intensive market competition, dairy enterprises have rolled out a wide range of cheese sticks with distinctive features. Apart from various funny shapes, including ‘cheese lollies’, they are also experimenting with flavours. A good example are Milkana’s strawberry flavoured cheese sticks.

This ad by Milkground presents their range of cheese sticks in various flavors: coconut, grape and natural. It promises a calcium content 7 times that of liquid milk. It has added Vitamin D. The animals indicate how fast your child will grow, if you let them snack on Milkground cheese sticks.

The current trend towards more nutritious snacks is also influencing the design of cheese sticks. Dr Cheese has launched a cheese stick sandwiched between two layers of dried seaweed.

Cheespirit has launched a series of innovative products in 2023: ‘Vegetable & Fruit Growing Up Cheese Sticks’. The company claims to have selected 8 kinds of ‘super vegetables and fruits’ to create high-calcium and high-VC cheese sticks, containing 3% dietary fibre. The calcium is 100% milk calcium, with a 1.8:1 calcium-phosphorus ratio. The product contains 40% whey protein, as well as algal oil DHA and various trace elements derived from vegetables and fruits, providing nutrients such as protein, dietary fibre, vitamins and other basic nutrients needed by children. It contains no preservatives. It uses two innovative two-colour-flavours: Lele orange (tomato, carrot and apple compound flavour) that contains β-carotene; and absolute purple (purple sweet potato, purple cabbage blueberry complex flavour) containing anthocyanins to help the children’s growth.

If this post is of interest to you, you may also want to read:

Cheese in China – a gargantuan challenge

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.

Why Young Chinese Consumers Prefer Online Bakeries

In Shanghai, bread has become an indispensable part of young people’s lives, whether it’s gathering with friends, exploring every corner of the city on a City Walk, or at various social events, bread has become a must-have food companion.

With the popularity of the Internet and changes in lifestyle, young people in Shanghai are revolutionizing the way they buy bread. From queuing up in physical stores to buying bread online, this shift not only reflects the change in consumption patterns, but also drives the innovation and development of the entire baking industry.
Bread has always been loved by the public as a quick and delicious breakfast and snack, and more and more young people are no longer satisfied with buying bread in traditional offline bakeries, but choose to buy bread online.

Metropolis

In the fast-paced metropolis of Shanghai, traditional bakeries seem to be losing favour with younger consumers. According to Winshang Big Data, although Shanghai has more than 1,300 bakery shops, ranking first in the country, young people are more inclined to buy bread online.

Left-overs

Driven by the wave of digitalization, online shopping has become an important part of modern life. For busy young people in Shanghai, buying bread online is not only convenient and fast, but also enjoys more discounts and choices. Recently, a method of food sales called ‘leftover blind boxes’ has quietly emerged, which is highly sought after by young people because it is labelled as money-saving, fun, and environmentally friendly. In addition, bakery accounts on social media platforms have become a new front to attract customers. Through the release of activities such as ‘Discount Blind Box’ and ‘Free Tasting’, it has successfully attracted the attention and participation of a large number of young users. This seems to be the next step after the appearance of good boxes in previous years.

Buying bread is crazier than buying clothes

In Shanghai, the fashion capital, young people are just as crazy about food. Compared to traditional bakeries, online bakeries are more diverse in styles and flavours. Shanghai’s bakeries have a variety of cake styles, so many that they may be more than you can imagine: from classic baguettes to creative matcha breads, from healthy breads with low sugar and fat to rich sandwiches. From classic French desserts to innovative varieties infused with Chinese flavours, Shanghai’s bakeries cater to every taste. There is a wide range of styles to make people dazzled.

Blind boxes

In recent years, the blind box economy has risen rapidly in China, and major businesses have launched blind box products to attract consumers.  Blind boxes, as an emerging marketing method, have found its place in the food industry. The bread blind box packages launched by major merchants not only increase the fun of shopping, but also provide consumers with more opportunities to try unknown flavours. And under this trend, the bread industry is not to be outdone by launching the bread blind box. These mystery boxes often contain a variety of random styles of bread, making every opening full of surprises. Consumers don’t know exactly what styles and flavours of bread they will get when they buy it, and this sense of mystery and anticipation makes young people want to stop. For young consumers who are looking for novelty and curiosity, this way of buying has an irresistible appeal.

Recommended other posts:

Bread in China – from snack to staple, though still for the young urban

Some Chinese bakery statistics

Uncle and Aunty Xiong, French bakers in Beijing

 

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.

Understanding China’s Tomato Paste Production Chain

Introduction

The industrial chain of tomato paste production mainly includes tomato planting, harvesting, processing, packaging and sales. Its upstream industries include tomato planting, pesticides, fertilizers, agricultural machinery, etc.; The midstream link is the production and processing of tomato paste, including cleaning, crushing, deseeding, concentration, seasoning and other steps, which require advanced processing equipment and technical support; The tomato paste produced by midstream production enterprises is packaged and sold through downstream sales channels, and is widely used in ready-to-eat fast food, pizza, snack food, canned food, beverages/juices, soups and other fields. As a commonly used condiment, tomato paste is widely used in Western cuisine. In Chinese cooking, it is mainly used to prepare sweet and sour flavours, such as squirrel mandarin fish, sweet and sour pork, etc.

Nutrition

Tomato paste contains lycopene, B vitamins, dietary fibre, minerals, protein and natural pectin, etc. Compared with fresh tomatoes, the nutrients in tomato sauce are more easily absorbed by the body.

Industry

In recent years, the scale of China’s tomato paste market has continued to expand, and the market capacity has been growing. However, at present, China’s tomato paste market is mainly occupied by leading enterprises, which have become industry leaders by virtue of their brand advantages, production scale and sales channels. However, some small and medium-sized enterprises compete with large enterprises through cooperation with farmers, production cost advantages, and flexible marketing strategies. In addition, some cross-industry enterprises have also entered the ketchup market, and these enterprises usually have strong financial strength and advanced production technology, which has a certain impact on the market competition pattern.

Ketchup

Ketchup is tomato paste with various added ingredients. In fact, ketchup is derived from the pronunciation of the Chinese term qiezhi (tomato juice) in southern dialects, spoken by Chinese in Southeast Asian countries. Ketchup is mainly divided into basic ketchup, Italian ketchup, jam-based ketchup, chili ketchup, sweet ketchup, sugar-free/low-sugar ketchup, organic or natural ketchup. The most common type of base ketchup is made from fresh or processed tomatoes, onions, garlic, herbs, spices, etc. It is often a versatile sauce that can be used to make a variety of dishes.

Industrial chain

The industrial chain of tomato paste production mainly includes tomato planting, harvesting, processing, packaging, sales and other links, and its upstream industries mainly include tomato planting, pesticides, fertilizers, agricultural machinery, etc., and tomato planting enterprises mainly provide raw materials for the midstream, so its output and quality will directly affect the quality and cost of tomato paste. The midstream link is the production and processing of tomato paste, including cleaning, crushing, deseeding, concentration, seasoning and other steps, which require advanced processing equipment and technical support. Leading enterprises are: COFCO Sugar Holdings Co., Ltd., Xinjiang Guannong Co., Ltd., Zhongji Health Industry Co., Ltd., Xinjiang Tianye Co., Ltd.

Tomato growing

In recent years, China’s tomato planting area has stabilized between 1.2 and 1.3 mln hectares, ranking the fourth largest vegetable variety in the country and has become an important part of the agricultural industry. The planting area is an important factor affecting the yield of tomatoes, so its stability will ensure the yield of tomatoes to a certain extent. The data shows that in China’s tomato production continued to rise during the past few years reaching more than 70 mln mt.

Xinjiang is blessed with unique natural conditions, including long sunlight hours, large temperature difference between day and night, dry climate and little rainfall. Xinjiang tomatoes have a high content of red pigment, high soluble solids, a high yield, as well as less pests and diseases. These characteristics greatly reduce the occurrence of fruit cracking and mouldy rot, and improve the overall quality of tomatoes. Therefore, Xinjiang is the main area of tomato cultivation in China. From the perspective of development history, Xinjiang first began to plant tomatoes on a large scale after the founding of the People’s Republic of China. After the first tomato paste production line was built in Xinjiang in 1984, the tomato industry began to embark on a fast track. From a national perspective, Xinjiang’s tomato production accounts for more than 80% of the country’s total.

Unstable

A good development of tomato production and marketing requires the a stable foundation for different parties in the value chain such as breeders, seedling dealers, growers, vegetable wholesalers, and consumers in the whole industry chain. In tomato production, wholesalers dominate market prices, so producers are at a disadvantage, unable to obtain stable and considerable income The low and unstable income have accelerated the transfer and loss of growers to other industries. The data show that from January 2022 to May 2024, the wholesale price of tomatoes in China has shown a downward trend. However, from the perspective of the production of tomato sauce in the midstream, the decline in the wholesale price of tomatoes will directly reduce the production costs of tomato sauce manufacturers, which is conducive to the rapid development of tomato sauce production enterprises.

Paste production

In recent years, the scale of China’s tomato sauce market has been growing. At present, China’s tomato sauce market is dominated by a few leading enterprises, which have become industry leaders by virtue of their brand advantages, production scale and sales channels. However, some small and medium-sized enterprises compete with large enterprises through cooperation with farmers, production cost advantages, and flexible marketing strategies. In addition, some cross-industry enterprises have also entered the tomato paste market, and these enterprises usually have strong financial strength and advanced production technology, which is beginning to impact the market competition pattern.

Related posts:

Tomatoes in the Chinese kitchen and even more for export

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.

Exploring China’s Milk Tea Craze: Brands and Growth

A rapidly growing beverage category in China are the milk teas. They are a combination of the bubble teas that originated in Vietnam and based and traditional milk or butter teas drunk by Mongolians and Tibetans.

In the course of 2018, China’s tea aficionados have embraced a new trend, one that is encapsulated in the growing popularity of the milk tea brand, Heytea. Originally sold in a tiny alleyway in Jiangmen, southern China’s Guangdong province, the brand went viral on social media because of its signature “cream cheese” series — a cup of hot sweet tea topped with a spoonful of savoury cream cheese. Since then, Heytea has developed into a franchise with more than 80 outlets in 13 cities across the country. There are also outlets in North America.

Milk tea now has many brands and more are still being added. Some are already established brands: for example, Naixue, Chagee, Mixue Ice Cream & Tea and Chabaidao.

This table shows the number of new outlets opened per year.

The penetration of chains has been steadily increasing in this business.

Here is an overview of the market size in RMB 100 mln and annual growth in %.

The following table lists the turnover and profit for a number of major players in this market for 2024.

This positive trend can be expected to continue, as the total turnover of this business is expected to grow, at least during the coming few years.

The 2023 New Tea Drink Research Report, released by the China Chain Store and Franchise Association and Meituan New Catering Research Institute, predicts that by the end of 2025, the market size of Chinese-style tea drinks will reach RMB 242.5 billion.

Related earlier posts:

Chinese milk tea brands cover their sins with artificial sweeteners

Drinks galore – the Chinese typology of beverages

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.

Exploring China’s Bakery Ingredient Market Trends

The Chinese bakery business is booming, but the market is also extremely volatile. There is no better moment to enter the Chinese market for suppliers of any bakery ingredient than now.

I have collated a few statistics that are recent enough to give a rough impression of the size of the market.

The first table indicates the development of the value of the market and the projection of the near future.

Some interesting details about consumer behaviour:

  • Whether online or offline, women are still the main consumers of baked goods in China.
  • In terms of age, 70% of consumers are between the ages of 21 and 40.
  • In terms of price, consumers spending RMB 20 – 40 in a single consumption constitute the largest segment (35. 8%).

The next table shows the number of bakery shops in a selected group of major cities. This tells something about the geographic distribution. However, the smaller provincial cities currently show the highest growth.

We should not forget the focus issue of this blog: food ingredients. This graph shows the major cream suppliers to the Chinese baking industry. As you can see, the market still consists of a few major brands and a large number of small suppliers.

You can find more information in earlier posts, e.g. about flour (improvers), baking enzymes, leading bakery Holiland, a small private bakery in Beijing, bread, and you can find more by using the search function in this blog (try pastry, cake, biscuit, etc.). Contact me for proprietary studies.

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.

A new trend in China: grading low-fat and sugar-free drinks

In the turbulent and increasingly diversified Chinese beverage market, sugar-free and low-fat have become the choices of more and more consumers. The following picture is taken from an influencer promoting ‘clean label’ products. However, official food and beverage labelling has only just started in China. As you can see, this influencer follows international practice.

Black bean milk

Origin: Ganquan; Brand: 8000 Miles (Baqianli) Price: RMB 1.70/200 ml; shelf life: 90 days.

Nutrition information (100 gr): energy 174 kjoules; protein: 4.4 gr; fat: 1.4 r; carbohydrates: 2.8 gr; sodium: 7 mg.

Ingredients: potable water, black beans, black rice, sesame.

According a recent survey, the market size of China’s sugar-free beverage industry has increased from RMB 2.26 billion in 2015 to 19.96 billion in 2022, and is expected to reach RMB 61.56 billion in 2025. In addition, according another survey, 75% of consumers believe that health is a focus issue in choosing which beverages to buy. In addition to taste, ingredients have become one of the most important beverage purchase considerations for consumers.

To meet the needs of consumers and guide them to make healthier decisions, projects for beverage grading have been proposed. Recently, Shanghai has started the first batch of pilot projects for the grading of ‘nutritional choice’ for beverages, and mainstream brands such as Naixue tea and Bawang Chagee tea have been selected as the first objects for testing, which has caused heated discussions in the industry.

Beverage grading

As the name suggests, beverage grading is the classification and rating of beverages based on certain criteria. These criteria usually include the ingredients, texture, taste, etc., of the beverage. The ‘Nutritional Choice’ grading piloted in Shanghai is based on the content of non-dairy sugar, saturated fat, transfat and non-sugar sweeteners in beverages, and comprehensively classifies beverages through four grades from A to D, in decreasing order. This allows consumers to make more rational consumption choices.

According to Shanghai Centre of Disease Control, the ‘Nutritional Choice’ beverage classification method mainly refers to domestic and foreign standards, and the full indication ‘Nutritional Choice’ can be used in various contexts, such as beverage packaging, ordering procedures, and menus. The classification of a beverage’s grade depends on its ‘shortcomings’. For example, if a beverage has a sugar content of C, saturated fat and transfat of A and no added non-sugar sweeteners, the beverage will be classified as C.

Singapore as example

In December 2022, the Singaporian government began to officially implement a classification policy for prepackaged beverages in the retail market, which also used four grades according to the sugar content and saturated fat content: A, B, C, and D. ‘A class (dark green)’, ‘B class (light green)’, ‘C class (yellow)’, ‘D class (red)’. Grade A means that sugar content and saturated fat are the lowest, and grade D represents the highest content. In addition to packaged beverages, all kinds of handmade beverages such as freshly squeezed juice and milk tea will also be labeled in this way soon. The labeling is the responsibility of the manufacturer, importer or distributor.

Milk tea first

It is understood that milk tea brands like Nai Xue, Bawang Chagee, Happy Lemon, and Hangzhou Leyuan are the first batch of brands to try out the ‘nutritional choice’ classification. On March 27, Naixue’s Shanghai stores and ordering outlets fully implemented the ‘Nutritional Choice’ logo, and Naixue’s ready-to-drink (RTD) products were also superscripted with the ‘Nutritional Choice’ logo. The data show that Naixue’s tea freshly made drinks and RTD bottled beverage products are mostly concentrated in the A and B grade ranges, with obvious health attributes and high recommended values. It is worth mentioning that after the introduction of the ‘Nutritional Choice’ label, the number of consumers choosing grades A and B has increased significantly.

As for Bawang Chagee, the medium-sized cup with less sugar is classified as B-grade, and the Oriental Iced Tea as A-grade. Bawang Chagee also emphasizes healthy sugar, promoting the choice of low GI foods (glycemic index less than 55), food GI value less than or equal to 55, are good choices, but this does not mean that the lower the GI value, the better. Tea lovers also need to choose according to their own situation to avoid falling into knowledge misunderstandings.

More beverages

In addition, Zerup Zero Sugar Drink, Watsons Soda, Suntory Sugar-Free Oolong Tea, etc., are classified as Grade A, F&N Ice Cream Soda, Wahaha AD Calcium Milk are classified as Grade B, FairPrice Whole Milk, Nongfu Spring Brand Tea, Green Oolong Tea, Yuzu Green Tea, Coconut Palm Coconut Water, Benasong Coffee and other products are all classified as Grade C.

Future

The ‘Nutritional Choice’ classification has enabled the beverage industry to move towards a more professional and refined business. With the continuous promotion of the ‘grading system’, more brands may join the ranks in the future. This will also be extended to food. Compared to beverages, there are more types of foods, and the content and proportion of nutrients are more complex. For example, a food can be evaluated based on the content of key nutrients such as protein, fat, carbohydrates, dietary fibre, vitamins and minerals in the food. At the same time, the content of nutrients such as sodium and sugar that are not conducive to health in food can also be considered, so as to evaluate the nutritional value of food more comprehensively.

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.