The organic food market in China: Trick-or-treat for Italian companies? A SWOT analysis.

Abstract

In the last forty years, China has experienced a growing urbanization and an economic-industrial growth never seen before. The strong phenomenon of industrialization and the rising urbanization ensured an improvement in the population living conditions but, at the same time, these circumstances led to a reduction of arable land’s availability and to an immoderate use of fertilizers and pesticides, reducing the security’s level of agricultural products. Food scandals, such as the melanine-contaminated powdered milk or meat scandal, and environmental degradations rose the public opinion. These episodes led the Chinese government to enact the 2015 Food Safety Laws and the so-called “Water Ten Plan” in order to improve quality of drinking water and to control the groundwater pollution. In this context, the value associated to western food products and organic food registered an increasing. In addition, a growing middle-class, an emerging high-income segment and a broadening of cultural horizons are affecting the Chinese food consumption behaviour. The dynamic Chinese market is evolving, creating room for European products, characterized by high standards of quality and food safety. In the first chapter, I have analysed the last steps of the Chinese history leading to the current state, the international trade policy framework in which exporting companies have to operate (the WTO), the issues of food security and food safety. In the second chapter, I have focused on the Chinese Regulatory Measures for Organic food, comparing it with the European Union legislation. I have proposed some examples of mistakes, made by European companies. The third chapter focused on the new trend of consumption, the Chinese organic food consumer’s analysis and the recent experiences of Italian companies that are exploring this new “niche market”.