Apr 14, 2022|
Eight Consumption Trends of Staple Foods in China
by Vivian Yang
In the past three years, JD’s omni-channel supermarket JD Super has seen robust sales growth of staple foods including the categories of rice, flour, and other grains by 52%, cooking oil by 29%, dry food by 65%, and condiments by 49% (CAGR 2019-2021), according to a report released by JD Super on April 8th in conjunction with its annual promotion of staple foods that will last from April 8 to 21.
The report, based on JD Super’s shopping data from 2019 to 2021, identified Chinese consumers’ eight consumption trends of these product categories as the following:
- Sales of staple foods with low fat, low sugar and of grain variety increased significantly on JD Super in 2021, with corn, brown rice, low/zero fat sauce and zero-calorie sweetener growing by 184%, 120%, 92%, and 85% respectively year on year.
- Organic foods rise in popularity. The volume of certified organic products on JD Super increased 110% and sales grew by 78% YoY in 2021.
- Agricultural products with the national geographical indication(GI) are favored by Chinese consumers. For example, Wuchang rice, Ningxia wolfberries, Gutian mushrooms, and Shanxi aged vinegar have seen sales growth by 105%, 78%, 60%, and 56% year on year.
- New instant food categories such as dried mushrooms soup packs, freeze-dried white fungus, wolfberry syrup, and vacuum-sealed fresh corns are becoming trendy. Sales of dried mushrooms soup packs surged by 18 times in the past year.
- New types of cooking oil are gaining traction. Avocado oil grew at a GAGR rate of 302%, making it the fastest-growing oil product on JD Super; safflower seed oil increased by 70%, and rice oil by 61% year on year.
- In terms of consumption trends geographically, people from China’s Guangdong, Jiangsu, and Liaoning provinces consumed the most cooking oil in the year 2021, with Liaoning being the fastest-growing province in spending on this category. Additionally, Guangdong, Beijing, and Jiangsu are the top three provincial-level regions that showed the highest demand of staple foods.
- There’s the great market potential for these categories in the lower-tier cities (third to fifth-tier cities) in China as the report data revealed strong demand momentum in both staple foods and condiments in these areas.
- Household users are the main spenders on staple foods, for those living in cities and in smaller towns, their consumption of staple foods accounts for 22% and 19% respectively of their overall yearly expenditures. It is also noteworthy that the percentage of consumers over the age of 46 in the category has grown to 12%, indicating that online shopping has become a main channel for them to buy daily necessities.
Thanks to the quality and healthy product varieties that JD Super consistently offers to Chinese consumers, it has become China’s leading omni-channel supermarket and the go-to place for more and more people to buy staple foods and other groceries. According to Nuo Xiao, general manager of the department of staple foods, oil and condiments of JD Super, the company plays an active role in stabilizing China’s food market and acts as an effective promoter and incubator for brands and products.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
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