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Press Release

Non-Genetically Modified Organism Processed Food Market in China - Demand for Transparency in Labeling Promotes the Growth of the Market | Technavio

Technavio Research
Posted on: 15 Dec 17

The non- genetically modified organism (GMO) processed food market in China is expected to grow at a CAGR of more than 16% during the period 2017-2021, according to a new market research study by Technavio.

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Technavio has added their 'Non-Genetically Modified Organism Processed Food Market in China' report to their food and beverage library. (Graphic: Business Wire)

The report categorizes the non-GMO processed food market in China by product (cereals and grains, beverages, meat and poultry, bakery, and edible oils) and by distribution channel (hypermarkets and supermarkets, independent retailers, specialty stores, and online retailers).

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Market driver: health and food safety concerns regarding genetically modified foods

Recently, there has been a lot of research in the field of genetics. Experiments are being conducted on plants and animals by changing their gene mutations. The GMO crops have several benefits such as increased yield and specific features. But, it poses significant risks to the health of living beings and environment. The genetic modification of crops changes their natural behavior towards various stimuli. The genetic simulationof crops can lead to the formation of toxic substances that can cause significant health hazards.

According to Atul Kumar, a lead analyst at Technavio for food research, “The regular use of GMO foods can lead to issues such as infertility and its severity can range from having babies of abnormal size to the inability to reproduce. Similarly, other issues related to the poor functioning of liver and kidneys were diagnosed. Glycophosphate, a toxin found in several GMO crops was found out to be carcinogenic.”

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Market trend: demand for transparency in labeling

Consumers are becoming aware of the composition of food items they consume and have started to pay attention to the nutritional value and ingredients mentioned in the product labeling. When it comes to non-GMO processed products such as beverages, edible oils, and others, there are several other ingredients that are also added to the product. To validate the finished good as a non-GMO food, it is necessary that only non-genetically modified ingredients are used in the making. The demand for transparency in labeling is highly dominant in the US, but now it is now being widespread in China, as people have become conscious regarding food hazards.

Market challenge: premium pricing of non-GMO foods

One of the major challenges for the adoption of non-GMO and organic food products is their premium pricing. This is primarily because of the imbalance between demand and supply of non-GMO foods. There are very few farmers and producers of non-GMO crops and their yield is low in comparison to that of GMO crops. The dismal production and heavy demand increase the prices of non-GMO foods, not just in China but across the world. The non-GMO seeds and animal feed for poultry are more expensive than regular seeds and feed. This cost due to higher prices of non-GMO seeds is added to the overall production cost.

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Key vendors in the market

  • China Beijing Organic and Beyond Corporation (OABC)
  • Epermarket
  • Beijing Noah Agricultural Development
  • Tony’s Farm
  • TooToo Organic Farm

The non-GMO processed food market in China is constantly faced with the rapidly changing consumer demands, preferences, and purchase patterns. It will also be influenced by the changes in government policies, global restrictions, illegal cultivation of GM crops, and other factors during the forecast period. The profit margins of vendors depend on government initiatives and the availability of non-GMO food products across the country. Vendors must expand their geographic presence and create the demand for non-GMO food in major cities to achieve sustainable growth.

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Business Wire

Last updated on: 15/12/2017

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