Organics Advance in China

Posted - November 1, 2008

China’s New Sophisticates

By Adrian Larose - as printed in O.W.N. Fall 2008

Demand for certified organic products is growing in China, with three organics trade fairs taking place annually, an associated year-round exhibition centre in Beijing and an increase in both interest in and research on domestic organics consumption.

Of course, China’s organic trade channels remain limited, compared to well-developed Western markets. Yet, according to the World of Organic Agriculture 2007, China ranked third in area of organic land under cultivation, after only Australia and Argentina. This area farmed organically in China has been growing at astonishing rates – 20 to 30% per year, according to the final report from the BioFach China fair.

Amongst Chinese consumers  in Beijing, meanwhile, more than 65% currently buy some organic foods, according to Ipsos Marketing research commissioned by the environmental NGO Greenpeace. Over 80% of survey respondents indicated they planned to buy organic foods at some point in the future. A major reason listed for choosing organic was concerns about health and safety.

A new 500 square-metre exhibition centre in Beijing is aimed both at those consumers, and at the organic businesspeople who are quickly increasing in number throughout China. The Organic Life Experience Center is organized by the same team as the Organic China Expo (OCEX), with the national Chinese government’s financial support. It offers year-round display and purchase of organic goods that are sold in the country.

Among the many brands now on display there are Green dot dot, the Beidahuang Group, Bolongbao organic wine, Lowcarbs organic, COFCO, Hona Organic, Qingpuyuan Vegetables, Beijing Well Full Food, Joyful Organic and products from as far as Mexico and Colombia as well as from German natural cosmetics firm Weleda.

“The Organic Life Experience Center in Beijing aims to provide a platform to build new business contacts for enterprises, promote an ecological lifestyle to consumers and stimulate the development of China’s organic food industry,” says Gao Chayao, of OCEX . “It holds lectures on health and organic food and cooking methods to promote awareness of organic agriculture.”

Besides providing year-round display spaces for the organic products, the Center also offers trade facilitation services, including market data analysis, and an experience center that holds these public events and product tastings. “The experience center allows visitors to taste delicious foods made of organic ingredients and healthy and nutritious diet alternatives,” says Gao. There is also a shop where goods on display can be purchased. All goods in the centre are certified organic.

The OCEX fair itself takes place in Beijing, this year from Nov. 27-29, 2008. Yet OCEX is not alone. The Organic & Natural Products fair in Shanghai has been established for a couple of years and big business has truly “come to town” with BioFach China now being held annually in Shanghai

This addition to the global BioFach fair network is heading for its third edition May 29-31, 2008. Compared to the two Chinese fairs, BioFach has had special success in attracting foreign firms that are eager to start harnessing the potential to export to China’s enormous population – as well, of course, attracting the expected qualified Chinese firms, eager to develop their own foreign export connections.

At BioFach China 2008, 242 exhibitors presented to more than 9,000 trade visitors, the latter a growth of almost 25% over the 2007 premiere edition. Amongst exhibitors, the international category had the strongest growth. The 2007 premiere had almost no foreign exhibitors, but 24 foreign firms graced the halls in 2008. This number will no doubt grow over coming years as confidence in the Chinese market’s potential and systems increases.

Other fairs that dot the region include Natural Products Expo Asia, held in Hong Kong, by the same organizer as major US fairs Natural Products Expo East and West; and Asia Organic & Lohas Expo, in Taiwan.

For visitors and locals alike, the organic lifestyle is steadily becoming an easier one to follow within China. The China Environment and Sustainable Development Reference and Research Centre has produced organic shopping guides listing stores for several Chinese cities in recent years, while Greenpeace just released The 2008 Beijing Organic Guide. It lists more than 60 shops, some of which are franchises, as well as restaurants and even farms.

Exactly who will be visiting these suppliers is becoming clearer. A visitors’ survey conducted by OCEX found that they are generally middle-aged, well-educated and live in a family setting. Only one third of those surveyed correctly identified China’s organic seal, and many named high prices as one major reason against buying organic.

Some of this goes with Greenpeace’s survey findings. “On one hand, a survey commissioned by Greenpeace China in January 2008 shows that nearly 80% of Beijing consumers are willing to buy organic food,” says Wu Haiyan, with Greenpeace China. “On the other hand, Greenpeace is concerned over the effect of chemical-intensive and GMO-intensive agriculture has on the environment and human health.” More than 90% of the Greenpeace survey respondents listed safety and health as reasons to buy organic, something they have in common with health-conscious shoppers in more developed organic markets worldwide.

It’s encouraging, if not surprising, to see the organic market begin to develop in China for the same reasons as it has in so many other countries. Perhaps in domestic organics, as in many other things, the Chinese will quickly catch us all up!