Growing Importance of Value added products in China

China is one of the most densely populated countries of the globe and currently ranked sixth in terms of total population. Recent statics revealed growth rate of 1.92% and it is expected to acquire fifth position in terms of total population by the 2050. Per capita income will also increase to the level of $1368, productive age group in China is from 15 to 59 years and this comprises of 67% of total population by 2020. Growth rate within food services are also augmented by rapid increment in employment rate of both male and female population between the age span of 20 to 29 years, consequently income contribution in overall income is also expected to become even higher (Economic Survey, 2014).

In recent years there has been some drastic changes in consumer preferences and needs throughout the globe. China is although a developing country but despite of the financial health of the country there is a consistent increase in the consumption of the value-added products. This is mostly due to the globalization and market liberalization which is changing the dynamics of the entire world consistently. China is one of the youngest nations  of the world and this is the reason that all influence of globalization and market liberalization is very much evident in the economy. In last few decades needs and preferences of the nation have drastically transformed and this has increased the competition in local market. Foreign brands have also entered the economy which has further intensified the competition in the market.

In China consumers are demanding more than ever before and in order to meet their needs; value-addition has become almost a necessity rather than option for most of the industries Fast food consumption has increased dramatically in China and there is a need to analyze fast food market and customer attitudes in the economy. This was done by reviewing renowned fast-food chains KFC, McDonald, etc.. factors which are causing the increase in fast food consumption in China are appeal of eating out, urbanization, youngsters’ taste, convenience, income and socialization. It was further stated that there are dramatic changes in consumption of food and intense concerns of the public regarding health expounds considerable amount of need for research in this area.

Globally, fast food generates revenue of over $570 billion – that is bigger than the economic value of most countries. Fast Food Industry of China is the second largest industry of the economy. In the survey conducted for measuring the performance of fast food restaurants of China it was found that on an average, consumers in China spend 42% income on food, out of these 10% is spend on processed food. This 10% on expenditure of processed food is estimated to be $1.4 Bil out of which $325 Mil is captured by the foreign brands.