Emerging opportunities, challenges and constraints in the Chinese food industry

China is the world’s fourth largest country by total land area behind Russia, Canada and the USA. However, given the phenomenon of growing urbanization, the pressure on food demand for an increasing population as well as changing diet, China has had progressively to resort to imports, becoming a net importer of food. This scenario is set to continue and could result in a future Malthusian scenario. Resourcefulness, technology, research and modernization are factors on which China can improve, as they will have a key role in determining the ability of China, and also of the world, to feed their respective populations in the future. Improved efficiency and productivity, reform of land use rights, but also the policy of "going out" and “land grabbing” are some of the plausible strategies that the country could improve on to avoid an inexorable stabilization or, at worst, a decline in domestic production, as well as taking into account the impact of climate change on agricultural commodities. Starting from these premises, this study, based on three core areas (food production, consumption and trade), aims to analyze the current situation, identifying opportunities, challenges and constraints that could prevent the development of the Chinese food industry. Initially, the Chapter provides an analysis of the context in which Chinese food companies evolve, analyzing supply (with a focus on the main food and beverages companies), and consumption and trade trends. Then, the main policies involving the food sector are analyzed. The obstacles that could affect the sustainable development of the Chinese food industry are included, focusing on increased urbanization, climate change threats and conflicts for limited natural resources (particularly land and water). A summary of the findings of this study and some recommendations for the Chinese food industry conclude the Chapter.

China is the world’s fourth largest country by total land area behind Russia, Canada and the USA. However, given the phenomenon of growing urbanization, the pressure on food demand for an increasing population as well as changing diet, China has had progressively to resort to imports, becoming a net importer of food. This scenario is set to continue and could result in a future Malthusian scenario. Resourcefulness, technology, research and modernization are factors on which China can improve, as they will have a key role in determining the ability of China, and also of the world, to feed their respective populations in the future. Improved efficiency and productivity, reform of land use rights, but also the policy of ‘going out’ and ‘land grabbing’ are some of the plausible strategies that the country could improve on to avoid an inexorable stabilization or, at worst, a decline in domestic production, as well as taking into account the impact of climate change on agricultural commodities. Starting from these premises, this study, based on three core areas (food production, consumption and trade), aims to analyze the current situation, identifying opportunities, challenges and constraints that could prevent the development of the Chinese food industry. Initially, the Chapter provides an analysis of the context in which Chinese food companies evolve, analyzing supply (with a focus on the main food and beverages companies), consumption and trade trends. Then, a short identification of the main policies involving the food sector are outlined. The obstacles that could affect the sustainable development of the Chinese food industry are included, focusing on increased urbanization, climate change threats and conflicts for limited natural resources (particularly land and water). A summary of the findings of this study and some recommendations for the Chinese food industry conclude the Chapter.