New forecasts suggest the Chinese bakery and cereal sector’s value will grow by billions of pounds over the next four years.
Citing findings from a report by research provider Canadean, foodbev.com states that increased demand for products supplied by Chinese companies will cause the sector to expand by $15 billion (£9.4 billion) between 2012 – 2017.
Although products such as breakfast cereals, cakes and cookies are hugely popular in Western Europe, these sugary treats are not part of the traditional Chinese diet.
This had prevented growth in a sector which will now be able to flourish as a result of structural changes to China’s economy – made with the aim of boosting consumer spending.
It’s thought that China’s urban population will grow to 800 million by the end of the decade and will also represent a new market for many international manufacturers.
According to canadean.com, consumers will increasingly turn to foreign products at the same time as boosting sales of sweet treats in their own country. This will be fuelled by consumers who trust the health and safety standards of international food manufacturers.
In addition, American and European companies will find it easier to sell their products to Chinese consumers thanks to economic changes brought on by the country’s change in leadership.