2 Challenges and Strategies to Grow in Asia Food Market

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Asia Food Market

One of the best markets in Asia is the Asia food market with China as the center. However, entering the China market is highly challenging especially for western companies. The difficulty in the US and Europe economic climate doesn’t affect the economic climate in China.

China’s economy grew by two digit rates in the past few years. Understanding the right Asia market strategy to enter the complex and big market becomes truly important for many companies especially in the B2B sector. Do you think your company is ready to hit the Asia market?

Strategies to Enter Asia Food Market in China

It seems like inexperienced foreign companies will find it hard to break into the food market in China successfully. There will be some challenges that western companies will face when they start entering China’s food market. But there are strategies and plans to apply.

  • Identify China’s food market

China is representing the huge potential food market for western manufactured services and goods. Yet, western companies must study about where the opportunities lie as well as how they can access those opportunities.

Each city in China offers different opportunities. Learn where your companies can expand through the table below about the potential Asia market entry:

Province Industry
Shandong Agricultural, pharmaceutical, oil, and foodstuffs
Jiangsu Chemicals, communications, textiles, petrochemicals, foods, steel, biomedicine, auto parts
Shanghai Petrochemicals, pharmaceutical, chemicals, automobile, financial, electronic apparatus
Guangzhou Automobiles, textiles, electronic appliances, apparel, petrochemicals, toys, chemicals
Shenzhen IT, biomedicine, semiconductors, electronics information, communications
Beijing Electronics, communications, IT 
Zhejiang Light industry, textiles, plastics, apparel, metallurgy, toys, furniture, household electrical, kitchenware

Through the table above you could see where the best opportunities about the food market are opened. Does it mean you can directly go to Shandong or Jiangsu to experience the Asia food market?

Choose the best location

  • Biggest cities in China

For many years, foreign enterprises’ prevailing wisdom focused on the most populated areas in China such as Guangzhou, Shanghai, and Beijing where the population is middle class people with income levels above China’s national average.

Those three cities have the highest Asia market growth and usually are the best testing ground especially for western companies that have limited experience entering China’s market. Unfortunately, western companies also face more competition and higher costs for operations.

  • Second choices

There are other cities in China that offer lower operating costs and set up for low experienced western companies. However, those cities have consumers whose spending power is increasing and creating amazing growth in the demand for western products and goods.

Those cities are Shenzhen, Wuhan, Tianjin, Chengdu, Chongqing, Qingdao, Nanjing, Dalian, Hangzhou, and Suzhou. They are all offering strong opportunities for western companies’ commercial products in many sectors. Yes, including in the food sector.

Researching the landscape of China’s market will be the key to your success in entering the food market and expanding your business to Asia. Spend your time mapping out suppliers’ and customers’ location, understanding the variation of distribution channels, and other aspects will help you grow successfully.


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