In recent years, China's output and consumption of organic food have continued to increase, ranking fourth in the world's organic market. The top three are the United States, Germany, and France. In China, consumers are increasingly biased towards natural, organic and low-calorie products, while also considering fat content, carbohydrates, sodium and sugar. Domestic consumers are more eager to make food ingredients more transparent, and are paying more and more attention to the words on food packaging and labels, clarifying the food's origin, cold chain logistics, nutritional content, production date and expire date and other factors. Among the best-selling organic foods are cooking oil, fresh milk, pork, chicken and beef. In China, the state's support for organic agriculture, the promotion of rural e-commerce, and the high consumer demand for food quality will drive the continued growth of organic food. It is estimated that by 2024, China's organic food sales will reach 76.8 billion yuan.

In the upstream market, China has a large number of organic production farms, forming organic industrial clusters with Beijing, Shanghai, the three north-eastern provinces, Shandong, Jiangxi, Zhejiang, Jiangsu, Guangdong, Yunnan, and Xinjiang as the main core areas. In the midstream market, a large number of companies rely on front-end products to gradually form consumer-oriented and semi-finished products; finally, in the downstream market, in the terminal construction of the organic industry, there are multiple types of terminals at the same time. In the process of terminal construction, the profitability of single stores and the layout of multiple stores are becoming the main aspects of competition among downstream enterprises.

In 2014, of all organic foods that were newly listed in China, organic baby products were used as an example, which accounted for 23%. This figure was only 3% in 2010. From a broad market perspective, organic baby food in China is still in its infancy. In 2014, the market for organic baby foods accounted for only 9% of all new baby and baby products. The same percentages were 38% in the United States, South Korea, and the United Kingdom. 40% and 63%. In addition, China's organic fruit and vegetable innovation continues to rise. Fruits and vegetables with an organic claim have exceeded 4% from 1% in 2011 to 2014. This figure is still relatively low compared to the global average of 10%, such as 16% in the United States, 24% in France, and 21% in Germany, but Its potential and development space are also obvious.

China's organic agricultural products are in a period of rapid development, but are mainly used for export. Because organic food is very popular in the international market and export profits are relatively high, many manufacturers are more inclined to export. In 2005, the number of China's organic agricultural products industry certified by China Green Huaxia reached 416, and the number of product categories was 1,249; the domestic sales of the product were 3.71 billion yuan, and the export was US $ 136 million; the total certification area reached 1.655 million hectares, of which certification. The highest area is wild collection, 695,900 hectares, followed by processing industry 638,200 hectares, fishery 167,400 hectares, animal husbandry 90,700 hectares, and plantation 62,800 hectares. By the end of 2006, the number of Sino-Green Huaxia certified enterprises had reached 601 (including the conversion period), the number of products was 2,647, the certified area totaled 2.64 million hectares, the total number of physical products was 2.11 million tons, and product sales were 6.17 billion yuan. The number of certified enterprises, certified area, and total products accounted for 26%, 50%, and 56% of the country respectively. The development speed and total scale have ranked first in the domestic organic certification industry. By the end of 2006, the domestic sales of organic foods had reached 5.6 billion yuan, the market size in 2007 had reached 6.17 billion yuan, and more than 2,300 domestic organic food manufacturers.

The development of China's organic agricultural products industry requires strong government support in terms of policies and economics. Enterprises must seize opportunities, change concepts and effectively solve the problems of organic food production technology, and develop domestic and international markets. Relevant government departments of China will vigorously promote the development of the organic food industry in accordance with the responsibilities of "guidance, standardization, cultivation, and supervision." China's organic food industry has great potential and good market prospects. The development of organic food industry is the best way to prevent rural and agricultural pollution. Relevant national departments will increase support and formulate industrial development plans.

At present, the global organic agricultural product market is growing at an average annual rate of 20% to 30%, and is expected to reach $ 100 billion in 2010. At the same time, the international market demand for Chinese organic products is increasing year by year. China's organic rice, vegetables, tea, miscellaneous agricultural and sideline products and camellia oil, walnut oil, honey and other processed products are in short supply in the international market. In 2006, China's organic food exports amounted to US $ 350 million, accounting for only 0.7% of the international organic market share. The vast market, coupled with two or three times the price of conventional products, has led more and more producers to take the road of organic production.

At present, the sales composition of various sales channels of the world's organic agriculture is as follows: supermarkets account for 25% -50%, organic agricultural specialty stores account for 25% -40%, and direct sales account for 10% -40%. Domestic organic product sales channels in China show the following trends.

The Chinese retail market is mainly monopolized by several international retail groups. Carrefour, Wal-mart, Metro, and Tesco have completed the layout of China's major markets in China. (Renamed Bu Feng lotus), Yoshinoshima, Parka, etc. have also established themselves in several parts of China. Domestic Chinese supermarkets, in addition to China Resources Vanguard Supermarkets, have mostly expanded in local markets, such as Shanghai's agribusiness and industry and Century Lianhua, Jiangsu's Suguo Supermarket and Times Supermarket, and Beijing Wumart Supermarket Shenzhen Renrenle Supermarket.

Although Carrefour lags behind Wal-Mart in the international market, it relies on a flexible system and the advantage of entering the Chinese market earlier, and firmly occupies the top position in China's foreign retail market, especially in northern cities such as Shanghai and Beijing. Carrefour is even more advantageous. obvious. At the same time, Carrefour was also the first retail company to introduce organic food to supermarkets in China. At present, Carrefour supermarkets in all major cities have counters for organic vegetables and cereals. The top organic companies in China's domestic sales, such as Beijing Organic Farm Science and Trade Co., Ltd., Beijing Qingpuyuan Vegetable Co., Ltd., and Shanghai Chongbentang Agricultural Co., Ltd. was one of the earliest suppliers of Carrefour. Wal-Mart has already started OEM production of organic products in China, which mainly include miscellaneous grains and honey.

METRO is one of the large Chinese supermarkets that promote organic food. They sell organic meat products. At the same time, you can also find organic pasta from Germany ’s imported OEM products. Imported organic products. Compared with local supermarkets, foreign-funded supermarkets sell more varieties of imported food. These imported foods are generally imported and distributed by imported food companies located in Shanghai, Beijing, and Shenzhen. They are the most popular and lower-priced imported foods. Traditional supermarket chains occupy a dominant position in the Chinese retail market, and they are also dominant in negotiations with suppliers. At the same time, under the current increasing concern about food safety and product quality, large chain supermarkets are increasingly demanding suppliers, and most of China's local organic food companies are emerging small businesses. There are only a few companies that really have the ability to supply to traditional supermarket chains. Large chain supermarkets are pursuing strategies of sales of low prices and large volumes. They at the same time apportioned to small suppliers the high sales costs and various inexplicable expenses. Currently many Chinese organic manufacturers or importers have encountered difficulties in terms of pricing and the availability of high-end organic foods. These factors have determined that they cannot enter large supermarket chains for sales.

In 2005, China ’s first organic food specialty store, Ostore, opened in Shanghai. Ostore was invested by Chinese Americans and Taiwanese. Among them, a large proportion of imported organic products in sales include German famous brand Rapunzel. At the same time, they have cafes and restaurants, and launched home delivery in Shanghai. However, the incomplete supply chain of organic foods in China has caused Ostore to sell products at surprising prices. A box of 150 grams of organic mung bean sprouts sells for 18 yuan, which has been unsatisfactory in store sales. Some of the imported products cannot really operate normally without the support of other sales channels. Being aware of this problem, Ostore operators began to push more of their products (including imported products) to other high-end supermarkets in Shanghai, gradually turning into dealers. However, in 2007, due to shareholder differences, Ostore still Ended with the door closed. After Ostore appeared in China, organic food stores opened successively in Shanghai, Beijing, Shenzhen and even other Chinese cities, and then there were few real successes.

Currently, the main cities that are still insisting on and developing are Luohuocheng and Hike. fun. Lahuo City was established in Beijing in 2006. There are currently eight stores in Beijing and one in Shenzhen, ranging from 40 to 400 square meters. Its retail network in Beijing has gradually become large. Mainly foreigners, and learned from Ostore's experience, while selling organic foods, they still sell natural and green products to make up for the shortage of organic food supplies. At the same time, in the early days, LOHAS City did not start to import on its own, but rather through existing suppliers. When the number of stores continued to increase, LOHAS City timely launched the free brand "Lohas", posted a variety of organic honey, jam, miscellaneous grains and other products, and began to import organic food directly from abroad, imported products include dried fruit, noodles, fruit juice and so on. Affected by the economic environment, LOHAS City closed two stores in Shanghai in 2008 and planned to re-enter the Shanghai market in 2009. It can be said that three years after its establishment, under the continuous adjustment, it has gradually found its own position and business model. The opening of the franchise market in 2009 was a milestone in the development process, and its market performance remains to be observed in the future. Haikele organic food chain was invested by Shanghai Tongmai Food Co., Ltd. At present, there are 14 stores in Shanghai. The store area is mainly small specialty stores of about 100 square meters. The plan to open 20 stores in Shanghai at the end of 2008 was suspended due to the economic situation. Unlike LOHAS, Tongmai basically sells certified organic products. At the same time, Hikele's imported foods account for a small proportion, mainly because its target customers are mainly Chinese. Heckler did not start importing by itself. The non-toxic home from Taiwan is based in the Guangdong market. Currently, three stores have been opened in Shenzhen, and Zhuhai and Jiangmen stores are about to open. Compared to Lohas and Tongmai, they introduced the franchise method from Taiwan earlier in the country. However, the incompleteness of the domestic organic industry industry chain will be the biggest problem for organic stores. It is worth mentioning that the Planck organic specialty store in Nanjing has grown to eight after four years of development, and seven of them have achieved breakeven, which shows that the organic market has great potential for development after extensive promotion.

High-end food supermarkets are currently the main sales channel for imported organic food. The high-end food supermarkets referred to here include two types. One is a chain of supermarkets mainly based on imported food for foreigners in China, such as Beijing Hualian BHG marketplace. , JennyLou, a supermarket chain in Beijing, JennyLou in Shanghai, Cityshop in Shanghai and Pine Marketplace in Songfang. The other is high-end food supermarkets supporting large high-end shopping venues, such as Pacific Department Store in Beijing, Dennis Department Store in Zhengzhou, Danlu Department Store in Wenzhou, Jiuguang Department Store in Shanghai, Parkson Supermarket, and Golden Eagle Commercial Building in Nanjing. Among them, Shanghai's city supermarkets and Songfang supermarkets are importers, especially city supermarkets, which occupy half of the imported food in the Shanghai market. At the same time, they have agents or branches around the world to help them find the latest and most popular products. But it is not directly related to the manufacturer. Therefore, in urban supermarkets, there are special organic food counters, where you can see the latest organic foods in many countries, such as the most popular organic beverages in Germany, Bionade, Newman's Organic, Amy's Kitchen, etc., but at the same time, these manufacturers, It is unknown that their products have been sold in China. All other high-end food stores are generally supplied by imported food agents. At present, China also has specialized importers and agents of organic food, such as Shanghai Shiyi Trading and Nanjing Maoshengyuan Technology.

Although the proportion of online sales in China is still small, it is developing at an alarming rate. Although food is not the main product category for online sales and is subject to quality issues in food delivery, online organic food sales combined with home delivery systems have been flourishing in the past year. Various supermarkets, including organic food chains, have their own online sales systems; at the same time, many organic suppliers have also established their own online sales and catalog sales systems, such as Beijing Organic Farm, Hong Kong Dot Green and Shanghai Chongben Church.

Here we mainly introduce several online home delivery and sales systems without physical stores. "Tootoofood.com" (www.tootoofood.com) is a B2C platform specialized in organic food sales, which was built by Jiucheng Group (NASDAQ: NINE) in 2008. It has started to sell in Beijing and Shenzhen and plans to enter Shanghai. BabRedbaby is the most successful mother-to-baby sales company in China. It mainly conducts business with catalog sales and online sales. It has branches throughout the country and has a warehouse logistics system. Healthy natural foods are the focus of its food sales. Currently, many organic food companies sell through red children. YiGuo is China's most famous fruit online distribution company, with operations in Shanghai and Beijing. The company has now expanded its products to other high-end foods, including organic foods, and mainly packaged foods.

Shanghai Helekang was established in the first half of 2008. Currently, it conducts organic and natural food distribution in the Shanghai area, and has expanded to the Suzhou area. It may expand to surrounding cities in the next few years. The products are mainly for daily use. the Lord. Beijing Food is located in Beijing. It is the earliest and most complete online sales system of organic food in China. In addition to its own website, it also sells mainly through Taobao. It can be distributed throughout the country. It currently launches a series of organic products. Supplier transformation. Some other home shopping sites, such as Afanti and Green Collar Commune, also entered the ranks of online organic sales in 2008. All professional online sales companies currently do not have their own upstream channels but purchase through suppliers.

The organic catering industry in China has not really started. Currently, restaurants with the organic banner have appeared in Shanghai, Beijing, and Shenzhen. Among them, the more famous are Shanzhai Japanese cuisine in Beijing, Qimin organic hot pot restaurant in Shanghai, and Shanghai famous restaurant. Tang Organic Cantonese Restaurant, etc., but consumers cannot verify the source of raw materials, and cannot be 100% organic; at the same time, many catering companies such as a tea, Qiaojiangnan cater to the introduction of one or more organic dishes Development of organic catering. Traditional vegetarian restaurants are gradually using more and more organic ingredients. Meditation lotus in Beijing and date palm in Shanghai are vegetarian restaurants related to Buddhist concepts.

The biggest opportunity for organic ingredients in the catering service industry is high-end hotels and restaurants from big cities in China. In Shanghai, Ostore was the first company to recommend organic ingredients to five-star hotels. As early as 2006, they and Westin Hotel jointly launched an organic buffet for hotel guests at noon on the weekend. Now there are several five-star hotels in Shanghai Hotels use more or less organic products, including organic eggs, organic cooking oil, organic milk & yogurt, etc.

In China's high-end and foreign-related catering service industries, many of the raw materials are imported materials, because the quality of domestic raw materials does not meet their requirements, the most obvious of which are coffee, dairy products, flour and meat (mutton, beef). In 2008, Australian organic beef and mutton exporters have come to Shanghai to seek export opportunities. At present, China does not have an organic supplier specializing in catering channels, but several traditional catering distribution companies have begun to add organic varieties to their products, such as Beijing Aroco Coffee Co., Ltd. In addition, the parent company of Hong Kong Dot Green Organic Foods has branches in Beijing, Shanghai, and Guangdong. The main business is catering and distribution. Red wine is a unique type of product and requires importers to have special wine import licenses. At present, wine importers are mostly professional wine importers. In addition to the catering service industry, large international supermarkets such as Metro and Carrefour are also the main sales channels for red wine.

The gift group buying market is one of the important channels for organic sales. The gift group buying market is divided into business gifts and welfare gifts. Higher market profits and relatively low cost of sales have led many manufacturers to introduce gift packaging for organic products. At the same time, many companies in the field of distribution also use group buying as the main sales channel. Organic food group purchases are generally in the form of gift boxes. The most common are organic vegetable gift boxes, organic cereals gift boxes, organic moon cake gift boxes, organic honey gift boxes, etc. These group purchases are mainly concentrated in the second half of each year. Many traditional gift sales companies have gift boxes added to their sales list. This also led to the emergence of organic brands specializing in organic gifts. Another model is for larger companies to balance year-round sales by issuing gift cards. For example, Zhenggu (Beijing) Agricultural Development Co., Ltd., prepaid cards and customized cards to meet customer needs. This has at the same time made the distribution workload evenly distributed throughout the year. Most organic retail companies have launched stored-value cards that can be sold as gifts, and the sales situation depends on their investment in group purchase sales. Organic farms are the core of the entire organic food industry.

The existence of surrounding organic farms is inevitable in a vibrant organic market. In addition to farm production, a variety of different market activities can be derived. Various services provided by organic farms can well strengthen the consumer's preference of organic food companies. In organic farms around big cities, whether it is a supplier of a large supermarket or a supporting farm of an organic chain supermarket, most of them carry out ecotourism and farm distribution and group purchase, and some also enter the catering market. For example, Beijing Liuminying Ecological Farm, Shanghai Baiouhuan Organic Farm, belongs to Nanjing Planck organically connected Planck Farm, and belongs to Zhiwan Organic Memorial Farm in Liverpool City. At the same time, many traditional farmhouses and private farms have begun to grow and market organically, such as the Italian farm in Beijing. This kind of eco-tourism farm is mostly around Beijing. At the same time, some non-governmental organizations and private farms have also started land-planting projects for urban households, which can be regarded as pioneers of Chinese Community Support Agriculture (CSA). The farmers market is an important channel for the sale of foreign organic products. Unfortunately, China does not yet have a farmer market in the true sense. There are some organizations and real estate developers in Beijing and Shanghai who have organized small organic food markets, but most of them are not manufacturers, such as the organic food market at Shanghai's Eco Desigh Fair. At the same time, there are some government-led agricultural carnivals and agricultural exhibitions in some areas, which can be regarded as a type of farmer's market to some extent.