SIAL China 2021: Business as Usual
Despite COVID-19 is still hurting large parts of the world, Asia's biggest food and beverage exhibition SIAL China took place in Shanghai from 18 to 20 May 2021. The three-day event hosted more than 4500 exhibitors from over 30 countries and regions. Due to the pandemic the 2020 edition had to be postponed until September 2020, but the 2021 edition took place as planned.
The pandemic is largely under control in China. Demand in the country is slowly getting back on track and the Chinese economy is experiencing significant growth rates again. A major challenge today however is international logistics and customs clearing, which takes longer than in pre-pandemic times.
China lowered tariffs to boost food business in 2020. In the hope of boosting the international food business, Chinese authorities lowered the tax rate for over 80 food and beverage-related items in February 2020, in the midst of the pandemic. This included import tariffs imposed on food items such as frozen pork, frozen avocados and non-frozen orange juice.
E-commerce maintained China's food and beverage revenue. The rapid development of China's e-commerce since 2000 has spurred the growth of China's food and beverage segment. Statista, the world's leading market and consumer data provider, predicts that food and beverage revenue via e-commerce in China in 2021 could surpass $170 billion, accounting for over 60% of the world's total. It also said it is likely to maintain an annual growth rate of over 8%, with a projected market volume of over $244 billion by 2025.
This is an abstract from an article written by Bart Horsten and published on the Green Seed International Newsletter on 37 May 2021. Green Seed Group is an international food marketing company.