Since Tawang Consulting opened the Tawang Food Health Industry and Consumption Research Institute (hereinafter referred to as Tawang Food Research Institute) in December 2022, Tawang Food Research Institute has continuously released food and health industry research and consumption research reports with the concept of "empowering the high-quality development of food industry brands". Tawang Food Research Institute is committed to combining the collection and analysis of global data such as consumption research data, enterprise data, and third-party data, and helping Chinese food enterprises improve business cognition and decision-making efficiency through digitalization and industrial data research.
The following is an industry and consumption study conducted by Tawang Food Research Institute based on the field of "edible oil" in August 2023, and the full report can be downloaded from the official website.
01、
In 2022, the edible oil market will open the stock mode,
The overall volume reduction price increased, and the industry changed from "quantity" to "quality"
1. The health, nutrition and safety needs of edible oil have been enhanced, the classification has been continuously refined, and the products have become increasingly diverse
Edible oil, also known as edible oil, that is, edible oil for the human body, generally refers to the vegetable oil or animal oil used in the process of making processed foods. Edible oil can provide the energy, fatty acids, micronutrients, etc. needed by the human body, which is beneficial to human health, and different edible oils have different nutritional characteristics.
Edible oil is divided into vegetable oil and animal oil according to the variety of fat. Affected by oil raw materials and processing technology, most of the common edible oils are vegetable oils. Vegetable oils include peanut oil, rapeseed oil, corn oil, soybean oil, olive oil, palm oil, sunflower oil, sesame oil, walnut oil, etc. Edible oil is divided into bulk oil, small package oil, and medium packaging oil according to packaging; Edible oil is divided into primary oil, secondary oil, third grade oil and fourth grade oil according to standard grades. Edible oil is divided into saturated fatty acid oil, monounsaturated fatty acid oil and polyunsaturated fatty acid oil according to fatty acids. According to the type and proportion of fatty acids, edible oils can be divided into high hydrochloric acid, balanced, high oleic acid and nut seed oil.
With the gradual rise of consumers' health awareness, the edible oil market has entered the green and healthy era from the rise stage of healthy diet, and consumers' edible oil consumption behavior has become more rational, paying more attention to health and efficacy, and paying attention to high-quality ingredients. Health concepts such as unsaturated fatty acids, high-quality fats, and light foods are accepted by consumers. At the same time, edible oil brands are introducing emerging oil products rich in linoleic acid, linolenic acid and vitamins to the market.
In the process of edible oil market development, the increasing differentiation of consumer groups leads to the diversification of consumer demand, and edible oil brands develop diversified products to meet the consumption needs of different groups of people, thus presenting an increasingly rich product matrix. For example, the head brands Arowana, Fulinmen and Luhua have launched edible oil products with multiple oil varieties. Luhua launched high oleic peanut oil layout in the subdivision of high oleic acid edible oil.
2. The overall situation of China's edible oil market: 100 billion market, the overall demand is strong, the volume reduction price has increased, and the scale of the industry has risen steadily.
Retail sales of edible oil in mainland China have continued to grow for many years. In 2022, the amount of edible oil consumption in mainland China will reach 117.41 billion yuan, a year-on-year increase of 4.89%. The mainland edible oil market shows the characteristics of volume reduction and price increase.
In 2022, the mainland's edible oil production, sales and imports will decline, which is the first decline in domestic edible oil consumption and imports since 2015, which means that the market has ushered in an inflection point.
The development of China's edible oil market conforms to the objective law of edible oil market development, with low growth or even negative growth after the per capita GDP exceeds 10,000 US dollars. There is a universal development law for the development of edible oil market in developed countries or regions in East Asia. When the per capita GPD is less than 5,000 US dollars, the per capita consumption of edible oil will grow rapidly, when the per capita GDP reaches 5,000 US dollars to 10,000 US dollars, the per capita consumption will grow slowly, and after the per capita GDP exceeds 10,000 US dollars, the per capita consumption of edible oil will enter a trend of no growth or even decline.
Combined with the data of the National Grain and Oil Information Center, it can be seen that the production and sales of China's edible oil industry are in a state of decline, and the reasons are:
1) In 2022, the growth rate of mainland GDP will slow down, with a growth rate of only 3%.
2) The marriage rate, birth rate and new population in the mainland continue to decline, and there will be negative population growth in 2022, which will affect the consumption of edible oil and wedding edible oil among mainland residents.
3) The war in Ukraine has affected the import of mainland sunflower oil, resulting in a decrease in sunflower oil consumption.
4) Under the influence of the new crown epidemic in 2022, offline stores will stop operating, eating out will decrease, and collective canteen dining will decrease.
5) The amount of oil used in industries such as industrial production using oil as raw materials has declined significantly. Taking industrial and other consumption as an example, it was 3.330 million tons in 2022, down 2.135 million tons from 5.465 million tons in 2021.
6) Mainland consumers' awareness of healthy consumption is on the rise and they adopt a lifestyle of "less" oil.
3. At the micro level, under the background of the per capita edible oil consumption of mainland residents growing for many years, it will decline in 2022, which means that the consumption level has changed from the pursuit of "quantity" to the pursuit of "quality".
Statistics show that the economic level of residents and the consumption level of residents have been continuously improved, and the proportion of food, tobacco and alcohol in per capita consumption expenditure has remained at about 30%. In 2022, the mainland's per capita annual edible oil consumption fell sharply for the first time. From the consumption level, consumers gradually changed from the pursuit of the "quantity" of edible oil to the pursuit of the "quality" of edible oil.
In 2022, the edible oil market will shift from the pursuit of "quantity" to the pursuit of "quality". "Quality" has different meanings for different market entities. For the market, "quality" means that the market has changed from an incremental market to a stock market, and the market brand is upgraded and innovated; For consumers, "quality" means the pursuit of quality of life; For the brand side, it means product quality and product upgrade.
02
The competition pattern of the edible oil market is stable, showing a competitive pattern of "one super and many strong". The enterprise Zhongyi Hai Kerry is the leader, followed by COFCO Group and Luhua Group. In terms of brands, Arowana ranked first, while Fulinmen and Luhua ranked second or third.
1. The market brand competition pattern is stable, Yihai Kerry's market share decreased slightly, and COFCO Group and Shandong Luhua increased slightly.
According to data from the State Food and Material Reserve Administration, the competition pattern of the mainland edible oil market from 2013 to 2022 was relatively stable, with mainstream brands such as Yihai Kerry, COFCO Group, Shandong Luhua, Shanghai Liangyou, Longevity Flower, Xiwang Group, Jiage Food, Guangdong Yingmark and Xiamen Zhongsheng, of which Yihai Kerry, COFCO Group and Shandong Luhua have always ranked in the top three. In 2022, the CR3 of industry enterprises was 61.0%. From 2013 to 2022, Yihai Kerry's market share continued to decrease slightly, while COFCO's market share continued to increase thanks to strong supply chain strength and a sound product matrix. Due to the excellent competitiveness of peanut oil products, Luhua's market share increased slightly.
2. The market brand competition pattern is stable, Arowana is far ahead, and Fulinmen and Luhua rank second and third.
According to data from the State Food and Material Reserve Administration, the competition pattern of the mainland edible oil market from 2017 to 2022 is relatively stable, and the mainstream brands are Arowana, Fulinmen, Luhua, Sea Lion, Longevity Flower, Xiwang, Olivilan, Dori and Orchid, of which Arowana, Fulinmen and Luhua have always ranked in the top three. In 2022, the industry brand CR3 was 53.7%. Arowana is far ahead, accounting for nearly 20% higher market sales.
03
In terms of consumption, the core needs of consumers are: nutrition, health and safety. Consumer demands for brands: safe and reliable big brands, high-end brands. In terms of consumer behavior, consumers' choices are diversified and healthy.
1. In terms of consumer values, consumers pay attention to the nutritional value, health efficacy and choice of edible oil; In terms of brands, consumers tend to choose safe and reliable big brands and high-end brands.
2. Diversified and healthy consumption behavior; For brands, filling product gaps can enrich the product matrix and enhance competitiveness.
Consumers are diversifying in their use of oils, which means that consumers are healthy and eat a balanced diet. The main types of oils that consumers will use edible oil in the future are peanut oil, soybean oil, sunflower oil, corn oil, rapeseed oil, blending oil and olive oil. Brand owners can develop products according to consumer needs, enrich product matrix, and enhance brand competitiveness.
For edible oil brands, crowd segmentation and scene segmentation can be carried out by adding different oil products. Corn oil and sunflower oil drive market growth, niche oil products, new edible scenarios may become growth breakthroughs.
04
Development trend of edible oil products: innovation and optimization of product attributes, product production process and product packaging. Product opportunity points exist in population segmentation and usage scenarios. For edible oil brands, improving healthy and nutritional attributes can enhance the core competitiveness of products, increasing natural and organic attributes can promote product upgrading, and improving environmental protection attributes can increase product added value.
1. For edible oil brands, it is necessary to improve the health and nutrition as the core attribute, improve the green and organic attributes of the product to meet the needs of consumption upgrading, diversified needs help to explore opportunities, and the enhancement of environmental protection and sustainable attributes can increase the added value.
Through product innovation, edible oil brands can enhance the competitiveness of consumption leading factors by improving the health and nutritional value of products. Improve the natural and organic properties of edible oil, realize product upgrading, and meet the consumption needs of high-end people under the background of consumption upgrading. Crowd segmentation means diversification of demand, and satisfying market segments that have not yet been covered is a market opportunity point for edible oil brands. With the increase of global environmental awareness, environmental protection and sustainability in edible oil production will become important considerations.
2. There are opportunity points in the consumer groups and use scenarios of edible oil, which can be used to enrich the product matrix; Innovations in production process technology and packaging increase product competitiveness.
Market opportunity points: Since different groups of people have different internal needs, edible oil brands select specific consumer groups, make up for product gaps, develop and sell edible oil products, and enrich the product matrix. In terms of consumption scenarios, edible oil brands can use different usage scenarios to develop different types of products, such as family gift edible oil, group purchase gift edible oil, etc.
Product innovation: edible oil brands can enhance product research and development level, innovate production processes, improve oil quality, and enhance product competitiveness. For edible oil brands, continuously optimize the material and design of product packaging, improve the efficacy, convenience and saving of packaging, and help enhance product competitiveness.
3. Brand marketing development trend of edible oil industry: a. Marketing scenario, combining product marketing and scene. b. Marketing differentiation. c. Social e-commerce marketing. d. Online and offline integration.
Epilogue:
Affected by multiple factors such as macroeconomics and individual consumers, after years of growth, China's edible oil market will decline in production, sales and imports in 2022, showing negative growth and ushering in an inflection point. The edible oil market has shifted from the pursuit of "quantity" to the pursuit of "quality", which means that the market has changed from an incremental market to a stock market, and market competition has intensified; For the brand side, it means product quality and product upgrade; For consumers, it means paying more attention to the quality of life and product quality.
The competition pattern of the mainland edible oil retail market is relatively stable, the industry concentration is high, and the CR3 of enterprises is 61.0%. The position of the head enterprise is stable, and the brand competition pattern presents a state of "one super and many strong".
In the future, consumers will choose edible oil products with a variety of oil varieties, and at the same time, niche oil edible oils are gradually attracting consumers' attention. Edible oil brands can improve the health and nutritional attributes of edible oils and enhance the core competitiveness of products; Improve the performance of natural and organic attributes and enhance the performance of product upgrades; Improve environmental protection and sustainable development attributes, enhance product added value; Seek innovation opportunities in diversified needs.