China Mid-to High-end Vegoils Development Potential, Operation Model and Investment Prospect

The production and consumption of China’s edible oils went through a rapid growth for nearly 20 years. However, during the rapid development, high degree of homogeneity and fierce competition occurred; profits continually dropped and vicious competition was found due to defective national standards and low industry technology. At present, the edible oil market was basically saturated in the first-tire and second-tire cities and the common large variety vegoils continually went down to towns and the rural market. Meanwhile, the market shares of the mid-to high-end small variety vegoils gradually increased and consumers’ attention and recognition towards the mid-to high-end varieties increased significantly. At present, the main mid-to high-end vegoils in the domestic market include imported olive oil, camellia oil, walnut oil, linseed oil, safflower seed oil, grape seed oil and mid to high end sesame seed oil, sunflower seed oil, peanut oil, rice oil and corn oil. At present, the development of China’s mid-to high-end edible oils are scattered, small scale and lacks unified standards. Enterprises usually label their products as “blend olive oil” and “blend camellia oil” and the oils are listed among the mid-to high-end oils and are sold to the mass consumer market. However, they are only rich varieties of the blend oil category. In developed countries, olive oil and camellia oil are called high-end woody plant vegoils and the consumers are with high income and high recognization; the market shares are above 25%. However, the proportion is less than 2% in China and there is still large space for the development in later period and would take a long process too. In the future, China’s edible oil consumption would also increase from the pursuit of “quantity” to “quality”. The focus would be on nutrition and even more on functions. The requirements on material selection or processing techniques would be more stricted. This would be enterprises’ opportunity and challenge and would also be a new competition field in the industry. What new features would be found in the competition of China’s mid-to high-end vegoils industry? How large is the space of China’s mid-to high-end vegoils demand growth? What integration would be found in the processing industry? What are the industry investment opportunities and viable operating models? This report systematically analyzed the characteristics of mid-to high-end vegoil industry changes in China in recent years and predicted China’s supply and demand and industry changes in the future. We hope to provide exclusive information of complete, systematic, professional and high reference value to those who are concerned about China’s mid-to high-end veg-oil trade, processing and in capital invest.