Consumer trends cooking oils in china

International Markets Bureau

Consumer Trends

Cooking Oils in China

MARKET INDICATOR REPORT | OCTOBER 2012

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e: ©

Bill

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INSIDE THIS ISSUE

PAGE 2

Consumer Trends Cooking Oils in China

Market Snapshot 2

Retail Sales 3

New Product Launches 6

New Product Examples 9

Market Shares by Brand 12

Market Shares by Company 13

Sources 13

Trade 3

Annex A: New Canola Oil Product Launches

A1

Annex B: New Food Products Containing Canola Oil

B1

MARKET SNAPSHOT

China is a diverse, modern society of 1.34 billion people, almost one-half of whom live in urban areas (47%). Beijing, the capital city, had a population of 12.21 million in 2009.

According to the Central Intelligence Agency World Fact Book (2012), by July 2012 an estimated 8.9% of the Chinese population will be 65 years or older, with a life expectancy at birth of 83.9 years, while almost three-quarters of the population (73.6%) are expected to be between 15 and 64 years of age.

The population of China is aging. Its estimated 0.481% rate of growth reflects the government’s family planning policy that limits each family to one child. As a result, children 14 years of age and under only make up 17.6% of the Chinese population. Furthermore, China’s median age has increased from 34.1 years in 2009 to 35.5 years in 2011—34.9 years for men, and 36.2 years for women.

In 2011, China’s oils market was valued at US$10.3 billion, of which rapeseed/canola oil accounted for approximately 20% (Euromonitor).

Between 2006 and 2011, overall consumer expenditures on oils increased at a compound annual growth rate (CAGR) of 14.8%, or almost US$5.1 billion in total (Euromonitor).

The growing affluence of China’s middle class, in addition to the country’s growing rate of urbanization, is allowing consumers to move away from traditional and inexpensive bulk oil products and trade up to higher-priced, packaged oils and fats. Butter and margarine are not commonly consumed.

Chinese consumers prefer vegetable and seed oils as they are perceived to be healthier. Blended oils are also considered to be healthier options as they offer the combined benefits of the individual oils.

As China’s well-educated, middle-class consumers become increasingly health conscious, sales and interest in olive oil have benefited with a 21% value growth from its initially small sales levels. According to Euromonitor, Chinese consumers are increasingly interested in the health benefits of olive oil, such as heart health and skin beautifying properties, over ordinary oils and fats.

Consumer education that promotes awareness of the health benefits of new oil products may appeal to the increasingly health-conscious Chinese consumers.

Source: ©Arlene Lang, 2010.

According to Statistics Canada, in 2011, Canada exported almost 568 million kilograms of canola oil to China, valued at US$676.4 million. The value and volume of these exports to China have shown a steady and substantial growth since 2007, doubling in volume and almost tripling in value (fixed 2011 exchange rates).

Canadian exports of canola seed for crushing have shown similar growth to those of processed canola oil

to China. In 2011, 1.3 billion kilograms of canola seed were exported to China, with a value of about US$762.3 million. The volume has almost doubled from 837.6 million kilograms in 2007, while the value has more than doubled from US$343.9 million (fixed 2011 exchange rates).

In 2011, Canada was the largest exporter of rapeseed, colza and mustard oils to China, followed by the

U.S. and the United Arab Emirates, according to Global Trade Atlas.

According to Euromonitor, canola/rapeseed (20%), soy (19%), peanut (14%) and corn (10%) oils made up 63% of total Chinese retail sales, while sunflower (7%), and sesame (1%) oils totalled 8%.

PAGE 3

Source: Statistics Canada.

Canadian Exports of Rapeseed and Canola Oil and Seed to China, 2007-2011

TRADE

RETAIL SALES

0

200

400

600

800

1000

1200

2007 2008 2009 2010 2011Rapeseed oil and canola oil Rapeseed and canola seed

Vol

ume

(Tho

usa

nds

of to

nnes

)

Source: Euromonitor, October, 2011.

Corn10%

Mixed oil25%

Peanut14%

Canola/rapeseed

20%Sesame

1%

Soy 19%

Sunflower7%

Others4%

China, Vegetable and Seed Oil by Type, % Retail Value by Retail Sale Price, 2011

PAGE 4

The bulk of the remaining oil sales consists of mixed oil (25%), and oils from other sources (4%)such as olive, palm, grapeseed, flaxseed, fruit, nuts, vegetables or other seeds, in addition to blended oil products, including: walnut, sunflower seed, corn and soybean; rapeseed and linseed; rapeseed, corn and tea seed; and tea seed, sunflower seed, peanut, rapeseed and sesame seed. Mixed oils are perceived to contain a great deal of nutritional value, as a result of containing several kinds of vegetable and seed oils.

Increasing levels of consumer awareness regarding the health benefits of cooking oils will continue to drive

interest in cooking oil products. RETAIL VALUE SALES

The total retail sales value of oils almost doubled from 2006 to 2011, growing by 99.4% (14.8% CAGR), as did vegetable and seed oil sales (99%, 14.8% CAGR), according to Euromonitor (2011) .

Between 2012 and 2016, oils and fats are expected to grow in overall value by 42.2% (9.2% CAGR), while

vegetable and seed oils are forecasted to grow by 41.7% (9.1% CAGR) over the same period. Olive oil’s perceived health benefits have led to its high rate of growth in China (Euromonitor, October,

2011). Sales of olive oil grew by 157.1% between 2006 and 2011. From 2012 to 2016, olive oil sales are forecast to almost double in value (94.5%) to US$234.2 million, spurred by increasing consumer demand.

Source: Euromonitor. October, 2011.


RETAIL SALES (continued)

China Retail Sales of Oils Historic Value in US$ millions (Fixed 2011 Exchange Rates)

2006 2007 2008 2009 2010 2011 CAGR(%)2006-2011

Total oils 5,179.6 6,216.4 7,316.5 8,155.8 9,198.8 10,328.7 14.8

Olive oil 38.9 49.9 60.5 68.5 82.5 100.0 20.8

Vegetable and seed oil 5,140.7 6,166.5 7,256.0 8,087.3 9,116.3 10,228.7 14.8

China Retail Sales of Oils Forecast Value in US$ millions (Fixed 2011 Exchange Rates)

2012 2013 2014 2015 2016 CAGR (%) 2012-2016

Total oils 11,539.3 12,730.0 13,893.5 15,115.8 16,411.1 9.2

Olive oil 120.4 143.8 169.8 199.9 234.2 18.1

Vegetable and seed oil 11,418.9 12,586.2 13,723.7 14,915.9 16,176.9 9.1

PAGE 5

RETAIL VOLUME SALES The overall retail sales volume of oils grew by 58.3% from 3.2 million tonnes in 2006 to 5.1 million tonnes

in 2011, (9.6% CAGR), as did vegetable and seed oil sales (58.2%, 9.6% CAGR). The greatest volume sales increase was observed for olive oil, which more than doubled (140%, 18.9% CAGR) over the same time period.

Between 2012 and 2016, volume sales are forecasted to continue growing, but at a slightly slower pace.

Overall, oils are expected to grow by 23.8% (5.5% CAGR), with a similar growth expected for vegetable and seed oil (23.7%, 5.5% CAGR).

Olive oil is expected to continue its strong growth with a 75% increase in volume (15.1% CAGR) over the

same forecast period, as a result of the increasing health consciousness of Chinese consumers.

Source: ©Bill Howe, June, 2008. Source: ©Arlene Lang, July, 2010.

RETAIL SALES (continued)



China Retail Sales of Oils Historic Retail Volume in ’000 tonnes

2006 2007 2008 2009 2010 2011 CAGR(%)2006-2011

Total oils 3,233.7 3,607.6 3993.6 4,377.9 4,753.8 5,118.3 9.6

Olive oil 3.0 3.9 4.6 5.2 6.2 7.2 18.9

Vegetable and seed oil 3,230.7 3,603.7 3,989.0 4,372.7 4,747.6 5,111.1 9.6

China Retail Sales of Oils Forecast Retail Volume in ’000 tonnes

2012 2013 2014 2015 2016 CAGR (%) 2012-2016

Total oils 5,466.0 5,797.3 6,121.6 6,442.7 6,764.9 5.5

Olive oil 8.4 9.7 11.2 12.9 14.7 15.1

Vegetable and seed oil 5,457.6 5,787.6 6,110.4 6,429.8 6,750.2 5.5

PAGE 6

According to Mintel’s Global New Products Database, 452 new cooking oil products were introduced in China between January 2007 and December 2011. There is an upward trend in the number of product launches over this timeframe, with the highest number of introductions in 2011.

Between January 2007 and December 2011, the majority of product introductions were comprised of new

products (72%), new varieties/range extensions (20%), new packaging (7%), with new formulations accounting for 1%.

The top five flavours for new oil products launched were: unflavoured/plain, prickly pear/cactus fig, chili/chili

pepper (unspecified), peppery hot/numbing hot, and sesame (unspecified).

Source: Mintel, 2012.


New Cooking Oil Product Launches in China by Year

58 6255

101

176

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011

# of New Products

New formulation

1%

New packaging

7%

New product72%

New variety/ range

extension20%

New Cooking Oil Product Launches in China by Type January 2007-December 2011

NEW PRODUCT LAUNCHES

0

10

20

30

40

50

60

SesameSeed Oil

Vegetableoils

Soybeanoil

Peanut oilRapeseedoil

Corn oil Sun flowersee d oil

Olive oil Tea seedoil

Linseedoil


Top Ten Ingredients in New Oil Product Launches in China January 2007- December 2010

Sesame seed oil was the most popular ingredient in China for new oil product launches between January 2007 and December 2010, followed by unspecified vegetable oils, soybean oil and peanut oil.

Three products released in this time period were named Canola Oil. Two products specifically identified

canola oil as an ingredient, one of which was imported from Canada (Canola Harvest Canola Oil). A third product identified rapeseed oil on the product packaging. One additional product mentioned canola oil in the product description, but rapeseed oil was specified in the ingredients listing.

In 2011, there were 176 new cooking oil products introduced in China, over one-half of which were blends

(96). Of the unblended cooking oil products, the most popular were sesame (22), rapeseed or canola (12), and corn (10).

Top Ten Ingredients in New Oil Product Launches in China, January - December 2011

0

5

10

15

20

25

30

35

Vegetableoils

Rapeseedoil

Sesameseed oil

Soybeanoil

Corn oil Peanut oil Tea seedoil

Walnut oil Sunflowerseed oil

Olive oil

# o

f P

rod

uc

ts


PAGE 7

# o

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NEW PRODUCT LAUNCHES (continued)

Sesame seed oil

Vegetable oils

Soybean oil

Peanut oil

Canola/rapeseed

oil

Corn oil

Sunflower seed oil

Olive oil

Tea seed oil

Linseed oil

Vegetable oils

Canola/rapeseed

oil

Sesame seed oil

Soybean oil

Corn oil

Peanut oil

Tea seed oil

Walnut oil

Sunflower seed oil

Olive oil

PAGE 8

The majority of new oil products introduced in 2011 were comprised of new products (66%), new varieties/range extensions (21%), and new packaging (13%). Rapeseed oil was second to unspecified vegetable oils as the most popular ingredient in new oil products, followed by sesame seed oil.

Claims that the product was GMO-free appeared on 21% of the new products, while claims that the

product contained no additives/preservatives or low/no/reduced cholesterol were found on 20 and 17 new products, respectively. Only one product was identified as cold pressed rapeseed oil.

The top brands of new cooking oils launched in China in 2011 were Zhao Cai Yu, Pure Fresh Farm,

Nisshin Oillio, Yang San You, Xiang Wang and Tang Chen.

NEW PRODUCT LAUNCHES (continued)

Type of Oil # of Products

Sesame 22

Canola or rapeseed 12

Corn 10

Peanut 9

Camellia or tea seed 8

Walnut 7

New Pure Cooking Oil Products Launched in China, Jan.-Dec. 2011

Linseed or flax seed 6

Extra virgin olive 6


Claim # of

Products

GMO-free 37

No additives/preservatives 20

Low/no/reduced cholesterol 17

Organic 16

Ethical - environmentally friendly product 15

Brain & nervous system (functional) 4

Low/no/reduced transfat 4

Halal 4

Other (functional) 4

All natural product 4

New Cooking Oil Product Launches in China by Claim, 2011



Brand # of

Products

Zhao Cai Yu 8

Pure Fresh Farm 6

Nisshin Oillio 5

Yang San You 5

Xiang Wang 4

Tang Chen 4

New Cooking Oil Product Launches in China, Top Brands, 2011

NEW PRODUCT EXAMPLES

PAGE 9

Cold Pressed Rapeseed Oil

Jianxing Agriculture Technology Ingredients: Rapeseed oil Product Description: Jianxing Tuo Pi Leng Zha Cai Zi You (Cold Pressed Rapeseed Oil) is green food certified and is low in erucic acid and glucosinolates. This rapeseed oil is made with GMO-free rapeseed and processed using the cold pressed technology to preserve the nutrients. It is rich in 20 types of essential nutrients, including vitamin A, vitamin E and beta-sitoterol. This product is free from added chemicals and retails in a 5 L jug. Positioning Claims: Ethical - environmentally friendly product, GMO-free Flavours: Unflavoured/plain

Organic Pure Walnut Oil France H.C.S. Group Ingredients: Walnut Product Description: High Change A+ You Ji Chun Sheng He Tao You (Organic Pure Walnut Oil) is made with quality organic walnut and is processed with the unique SMA extraction and CO2 extraction techniques to preserve the natural essence of the walnuts. It contains alpha-linolenic acid, alpha-linoleic acid, vitamin A, vitamin D, vitamin E, folic acid, beta-carotene. The oil is said to improve brain functions and increase mental capacity. It claims to be easily absorbed and to be suitable for children from newborn to 12 years old, as well as pregnant and postnatal women. This product retails in a 250 ml bottle. Positioning Claims: Organic, babies and toddlers (0-4), children (5-12), female, brain and nervous system (functional) Flavours: Unflavoured/plain


Cooking Oil for Vegetable Dish Wan He Oil Ingredients: Walnut oil, sunflower seed oil (seed), corn oil, soybean oil Product Description: Zhao Cai Yu Cooking Oil for Vegetable Dish is a blend of walnut oil, sunflower seed oil and corn oil. It is rich in vitamins, unsaturated fats, linoleic acid and linolenic acid. Linoleic acid is essential to the human body, while both linoleic acid and linolenic acid help to ease inflammation, prevent and ease eczema and dermatitis. This product retails in a 2 L bottle. Also available are Leng Zha Yi Ji Kui Hua You (Cold Pressed First-Class Sunflower Seed Oil); Leng Zha Yi Ji He Tao Kui Hua You (Cold Pressed First-Class Walnut and Sunflower Seed); Leng Zha Yi Ji Hua Sheng You (Cold Pressed First-Class Peanut Oil); and Leng Zha Yi Ji Yu Mi Pei Ya You (Cold Pressed First-Class Corn Germ Oil).

Positioning Claims: Other (functional) Flavours: Unflavoured/plain



http://www.gnpd.com/sinatra/gnpd/hotlink/item_id=1589626?utm_source=download&utm_medium=rtf�

Flaxseed Nutritious Blended Oil A Best Plant Oil Development Ingredients: Rapeseed oil, linseed oil (organic) Product Description: A Best Ya Ma Ying Yang Tiao He You (Flaxseed Nutritious Blended Oil) is made with non-genetically modified ingredients. This product retails in a 1.8 L bottle. Positioning Claims: GMO-free Flavours: Unflavoured/plain

Source: Datamonitor Product Launch Analytics.

Nutritious Camellia Oil Lv Yuan Oil Industrial Ingredients: Tea seed oil (seed), corn oil, rapeseed oil, sunflower seed oil, peanut oil, walnut oil Product Description: Lv Yuan Jing Gang Shan Cha Ying Yang You (Nutritious Camellia Oil) contains squalene, linoleic acid, linolenic acid, beta-carotene, vitamin E and phytosterol. It is free from artificial antioxidants and is rich in unsaturated fatty acids. This product retails in a 5 L jug. Positioning Claims: Not available Flavours: Unflavoured/plain

PAGE 10

Barbera Selezione Storica - Olio Extra Vergine D'Oliva Manfredi Barbera & Figli S.p.A Ingredients: Olive oil Product Description: A new Olio Extra Vergine D'Oliva (Extra Virgin Olive Oil) has been recently launched in France, Italy, Germany, the Netherlands, China, Japan, Canada, Russia, and Brazil under the Barbera Selezione Storica brand name. Manufactured in Italy by Manfredi Barbera & Figli S.p.A., the product is said to be suitable for use on all seafood dishes, bread, bruschetta, vegetable soups and in couscous and desserts. It is presented in a 500 ml glass bottle. Positioning Claims: Not available Flavours: Unflavoured/plain

Cereal Blended Oil Cofco Ingredients: Soybean oil, rapeseed oil, peanut oil, corn oil, rice bran oil, sesame seed oil, wheat germ oil (germs), tertiary butylhydroquinone (food and drink additives, antioxidants) Product Description: Fortune Tian Ren Gu Wu Tiao He You (Cereal Blended Oil) is added with corn, wheat and cereal. It contains multiple trace nutrients. This product retails in a newly designed 4 L jug. Positioning Claims: Not available Flavours: Unflavoured/plain

Source: Mintel GNPD.



NEW PRODUCT EXAMPLES (continued)



NEW PRODUCT EXAMPLES (continued)

PAGE 11

Non-GMO Cold Pressed Sunflower Seed Oil Pure Fresh Farm Organic Foods Ingredients: Sunflower seed (seed) Product Description: Pure Fresh Farm Fei Zhuan Ji Yin Leng Zha Kui Hua Ji You (Non-GMO Cold Pressed Sunflower Seed Oil) is pressed using quality sunflower seeds from Inner Mongolia and processed using a cold pressing technique. This oil has a pure taste, a rich colour and an aroma of sunflower seed. The product retails in a 2 L bottle. Also available are Jing Zhi Kui Hua Ji You (Refined Sunflower Oil); Kui Hua Tiao He You (Sunflower Blend Oil); Chun Kui Hua Ji You (Pure Sunflower Oil); Nong Xiang Kui Hua Ji You (Aromatic Sunflower Seed Oil); and Da Tou You (Soy Oil). Positioning Claims: Not available Flavours: Unflavoured/plain

Chinese Prickly Ash Oil Shanghai Totole Flavouring Food Ingredients: Soybean oil (tertiary butylhydroquinone), concentrated Chinese prickly ash oil (rapeseed oil, Chinese prickly ash [Chinese]), flavouring substances (food and drink additives) (peanut oil) Product Description: Totole Hua Jiao You (Chinese Prickly Ash Oil) has been repackaged in a newly designed pack. This oil is made from Han Yuan pepper and said to be aromatic and tasty. The product retails in a 405 ml bottle. Positioning Claims: Not available Flavours: Unflavoured/plain



Olive Peanut Oil Yu Quan Lipin Ingredients: Peanut oil (pressed), olive oil (pressed) Product Description: Yu Quan Olive Peanut Oil is made with olives and peanuts and is said to be a healthy product. According to the manufacturer, oils contain choline, which aids in improving memory capacity and olive oil has beauty benefits. The resveratrol in peanut oil helps prevent tumours and carotid artherosclerosis and lower platelet aggregation. Olive oil contains squalene, which helps lower the amount of LDL in the body, and Omega-3 fatty acids, prevent thrombotic disease. This product retails in a 4.5 L jug. Positioning Claims: Other (functional), beauty benefits, brain and nervous system (functional) Flavours: Unflavoured/Plain



MARKET SHARES BY BRAND

PAGE 12

Brand Company/Global Brand Name 2006 2007 2008 2009 2010

Jinlongyu Wilmar International Ltd 29.4 29.9 30.0 30.7 31.6

Fortune China National Cereals, Oils & Foodstuffs Import & Export Corp (COFCO)

4.1 7.5 9.7 7.8 9.5

Luhua Shandong Luhua Group Co Ltd 9.1 8.9 8.9 9.6 9.3

Yuan Bao Wilmar International Ltd 6.6 6.6 6.6 6.8 7.1

Haishi Shanghai Liangyou Group Co Ltd 5.6 5.8 5.7 4.1 4.2

Fourseas China National Cereals, Oils & Foodstuffs Import & Export Corp (COFCO)

1.6 2.6 2.7 2.2 2.7

Hu Ji Hua Wilmar International Ltd 2.2 2.2 2.2 2.3 2.3

Mighty Standard Food Group 1.3 1.8 1.8 1.9 1.9

Liyu Wilmar International Ltd 1.6 1.6 1.6 1.6 1.7

Sheng Zhou Xiamen Zhongsheng Oil & Grain Co Ltd 1.8 1.7 1.6 1.6 1.5

Eagle Zhongshan Eagle Brand Food Co Ltd 1.0 0.9 0.9 1.0 1.0

Longevity Flower China Corn Oil Co Ltd 0.1 0.2 0.3 0.4 0.8

Red Lantern Lam Soon Group 1.4 1.5 1.5 1.1 0.8

Red Darning Chongqing Oil & Fat Parent Co 0.6 0.9 0.9 0.9 0.8

Tuoniao Quanzhou Jin Hua Oil Co Ltd 0.3 0.3 0.4 0.6 0.7

Jinhao Hunan Jinhao Camellia Oil Corp Ltd 0.4 0.7 0.8 0.9 0.7

Zhongchang Hubei Zhongchang Oil Co Ltd 0.4 0.7 0.7 0.6 0.6

Lu Bao Beijing Elsen-Lubao Oil Co Ltd 0.5 0.5 0.5 0.5 0.4

Camel Hop Hing Holdings Ltd 0.6 0.7 0.6 0.4 0.3

Mother's Choice Burns, Philp & Co Ltd 0.3 0.2 0.2 0.2 0.2

Anchor Fonterra Co-operative Group 0.2 0.1 0.1 0.1 0.1

Bright Bright Food (Group) Co Ltd 0.1 0.1 0.1 0.1 0.1

Knife Lam Soon Group 0.3 0.3 0.2 0.2 0.1

Suki Shanghai Gaofu Longhui Foods Co Ltd 0.2 0.2 0.1 0.1 0.1

Olivoila Wilmar International Ltd - 0.0 0.1 0.1 0.1

Xiang You Fang Quanzhou Jin Hua Oil Co Ltd - 0.1 0.1 0.1 0.1

Président Lactalis, Groupe - 0.1 0.1 0.1 0.1

Chu Bao Hop Hing Holdings Ltd 0.2 0.2 0.1 0.1 0.1

Flora Unilever Group 0.1 0.1 0.1 0.1 0.1

Meadow Lea Goodman Fielder Ltd 0.1 0.0 0.0 0.0 0.0

Hu Ji Hua Kuok Oils & Grains Pte Ltd (KOG) - - - - -

Huo Niao Beijing Tong Yi Oil Co Ltd - - - - -

Jinlongyu Kuok Oils & Grains Pte Ltd (KOG) - - - - -

Liyu Kuok Oils & Grains Pte Ltd (KOG) - - - - -

Luhua Laiyang Luhua Fragrant Peanut Oil Co Ltd - - - - -

Mother's Choice Goodman Fielder Ltd - - - - -

Yuan Bao Kuok Oils & Grains Pte Ltd (KOG) - - - - -

Others Others 30.0 23.6 21.2 23.7 20.9

Total Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor, 2012.

Brand Shares of Cooking Oils in China Retail Sales Value % Breakdown

PAGE 13

SOURCES

Central intelligence Agency (CIA). (2012). World Fact Book. Datamonitor. (2012). Euromonitor International. (2012). Euromonitor International. (October 2011). Oils and Fats in China. Mintel Global New Products Database. (2012). Statistics Canada. (2012).

Company 2006 2007 2008 2009 2010

Wilmar International Ltd 40.2 40.8 41.0 42.0 43.4

China National Cereals, Oils & Foodstuffs Imp & Exp Corp (COFCO)

5.7 10.2 12.4 10.1 12.1

Shandong Luhua Group Co Ltd 9.1 8.9 8.9 9.6 9.3

Shanghai Liangyou Group Co Ltd 5.6 5.8 5.7 4.1 4.2

Standard Food Group 1.3 1.8 1.8 1.9 1.9

Xiamen Zhongsheng Oil & Grain Co Ltd 1.8 1.7 1.6 1.6 1.5

Zhongshan Eagle Brand Food Co Ltd 1.0 0.9 0.9 1.0 1.0

Lam Soon Group 1.7 1.8 1.7 1.2 0.9

Quanzhou Jin Hua Oil Co Ltd 0.3 0.4 0.5 0.7 0.9

China Corn Oil Co Ltd 0.1 0.2 0.3 0.4 0.8

Chongqing Oil & Fat Parent Co 0.6 0.9 0.9 0.9 0.8

Hunan Jinhao Camellia Oil Corp Ltd 0.4 0.7 0.8 0.9 0.7

Hubei Zhongchang Oil Co Ltd 0.4 0.7 0.7 0.6 0.6

Beijing Elsen-Lubao Oil Co Ltd 0.5 0.5 0.5 0.5 0.4

Hop Hing Holdings Ltd 0.9 0.9 0.7 0.5 0.4

Burns, Philp & Co Ltd 0.3 0.2 0.2 0.2 0.2

Fonterra Co-operative Group 0.2 0.1 0.1 0.1 0.1

Bright Food (Group) Co Ltd 0.1 0.1 0.1 0.1 0.1

Shanghai Gaofu Longhui Foods Co Ltd 0.2 0.2 0.1 0.1 0.1

Lactalis, Groupe - 0.1 0.1 0.1 0.1

Unilever Group 0.1 0.1 0.1 0.1 0.1

Goodman Fielder Ltd 0.1 0.0 0.0 0.0 0.0

Beijing Tong Yi Oil Co Ltd - - - - -

Kuok Oils & Grains Pte Ltd (KOG) - - - - -

Laiyang Luhua Fragrant Peanut Oil Co Ltd - - - - -

Others 29.5 23.1 20.6 23.1 20.3

Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor, 2012.

MARKET SHARES BY COMPANY

Company Shares of Cooking Oils in China Retail Sales Value % Breakdown

According to Mintel’s Global New Products Database, 48 new cooking oil products containing rapeseed oil were launched between January 2007 and December 2011, the majority of which were introduced in 2011. Of these new products, 18 contained only rapeseed oil, while the remaining products also contained other ingredients. Only one product was specifically identified as cold pressed rapeseed oil. An examination of the 48 product descriptions identified 2 oils with “canola” in the product name but rapeseed oil appeared in all product ingredient listings.

Between January 2007 and December 2011, the majority of new cooking oil product introductions

containing rapeseed or canola oil were comprised of entirely new products (77.5%), new varieties/range extensions (15.0%), with new packaging accounting for 7.5%.


New Rapeseed or Canola Oil Products in China, By Launch Type, January 2007 to December 2011


Rapeseed and Canola Oils New Single Ingredient vs. Multi-Ingredient Cooking Oil Products

Launched in China between January 2007 to December 2011

PAGE A1

0

5

10

15

20

25

30

2007 2008 2009 2010 2011

New formulation New packaging New product New variety/range extension

# o

f N

ew P

rod

uct

s

Cooking oils containing

only rapeseed or canola oil

37%

Cooking oils containing

rapeseed or canola oil and

other ingredients

63%

ANNEX A: NEW CANOLA OIL PRODUCT LAUNCHES

Peanut, sesame and soybean oils were the most popular ingredients combined with rapeseed or canola oil in new cooking oil products introduced between 2007 and 2011.

While sesame oil is a popular ingredient used in new cooking oil products, it is mainly used for

flavouring in dishes, rather than as a cooking oil.

Top Ingredients also Contained in New Rapeseed or Canola Cooking Oil Products Introduced in China between January 2007 and December 2011


Feng Rui Jin Cai Hua 2

Nisshin Oillio 2

Li Hong 2

Rong Sheng Yuan Jian Men 1

Jing Run Lao You Weng 1

King Shine Shuai Pai 1

Lv Yuan Jing Gang 1

Cheer Come Lv Tai 1

Cofco Fu Lin Men 1

Chang Xiang Yi 1

Top 10 Brands of New Rapeseed or Canola Cooking Oil Products

Introduced in China, 2011

Brand # of Products Company # of Products

Cofco 3

Yihaijiali Foods 2

Yihai Kerry Food 2

Nisshin Oillio 2

Lihong Foods 2

Top Companies Introducing New Rapeseed or Canola Cooking Oil Products

in China, 2011

Feng Rui Oil 2



PAGE A2

0

2

4

6

8

10

12

14

Peanut oil Sesameseed oil

Soybeanoil

Corn oil Tea seedoil

Sunflowerseed oil

Walnut oil Linseed oil Olive oil Wheatgerm oil

# o

f P

rod

uct

s

ANNEX A: NEW CANOLA OIL PRODUCT LAUNCHES (continued)

Peanut oil

Sesame seed oil

Soybean oil

Corn oil

Tea seed oil

Sunflower seed oil

Walnut oil

Linseed oil

Olive oil

Wheat germ oil

Medium- and Long-Chain Fatty Acids Oil Nisshin Oillio Ingredients: Medium chain fatty acids (medium, food acids), low erucic acid rapeseed oil (low erucic), cucrose esters of fatty acids (food acids) Product Description: Nisshin Oillio Zhong Chang Lian Zhi Fang Suan Shi Yong You (Medium- and Long-Chain Fatty Acids Oil) is now available in a newly designed 450 ml bottle. This oil is made with medium chain fatty acids oil, low erucic acid rapeseed oil and sucrose fatty acid esters. This product is said to aid in weight loss and retails in a 450 ml bottle. Also available are the following varieties: FOR Shi Yong Tiao He You (FOR Blended Oil); and Yi Ji Da Dou You Se La You (Grade A Soybean Salad Oil). Positioning Claims: Slimming Flavours: Unflavoured/plain

Hanyuan Zanthoxylum Schinifolium Sieb. Et Zucc Oil Youjia Foodstuffs Co. Ingredients: Rapeseed oil (high quality), fresh zanthoxylum schinifolium sieb. et zucc Product Description: Youjia Han Yuan Teng Jiao You (Hanyuan Zanthoxylum Schinifolium Sieb. Et Zucc Oil) is made with quality zanthoxylum schinifolium sieb. et zucc extract using a modern technique. The oil has a long-lasting, peppery hot aftertaste and can be added to a variety of dishes. This quality product is free from flavourings and retails in a 500 ml bottle. Positioning Claims: No sdditives/preservatives Flavours: Unflavoured/plain

Tea Seed Golden Nutritious Blended Oil Bang Er Tai Suxian Oils Ingredients: Tea seed oil (seed, pressed), sunflower seed oil (seed, pressed), peanut oil (pressed), rapeseed oil (pressed), sesame seed oil (pressed) Product Description: Suxian Cha Zi Huang Jin Ying Yang Tiao He You (Tea Seed Golden Nutritious Blended Oil) is made with non-GMO ingredients, which are combined with different types of quality edible oils. This product is rich in carotene and vitamin E and retails in a 2.5 L bottle. Positioning Claims: GMO-free Flavours: Unflavoured/plain




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Quality Rapeseed Oil Cofco Ingredients: Rapeseed oil, tertiary butylhydroquinone (food and drink additives, antioxidants) Product Description: Cofco Fu Lin Men Yi Ji Cai Zi You (Quality Rapeseed Oil) is QS certified. This product retails in a 1.5 L bottle. Also available is Yu Mi You (Maize Oil), which retails in a 1.8 L bottle. Positioning Claims: Not available Flavours: Unflavoured/plain

Pressed Aromatic Rapeseed Oil Yihaijiali Foods Ingredients: Rapeseed oil Product Description: Liyu Xiao Zha Nong Xiang Cai Zi You (Pressed Aromatic Rapeseed Oil) is made with non-GMO rapeseed using a pressing technique. This product is ideal for making Sichuan style dishes and retails in a 5 L jug. Positioning Claims: GMO-free Flavours: Unflavoured/plain

Camellia Oil Shanrun Camellia Oil Technology and Development Ingredients: Rapeseed Oil (First Grade, Pressed), Corn Oil (First Grade), Tea Seed Oil (First Grade) Product Description: Shanrun Cha Zi Yu Mi You (Camellia Oil) is made using organic certified camellia oil, non-GMO corn oil and non-GMO rapeseed oil. This cold pressed oil contains unsaturated fatty acids and is said to be light and non-greasy. The product is available in a 1.8 L bottle. Positioning Claims: Organic, GMO-free Flavours: Unflavoured/plain




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Rapeseed Oil Shuai Oil Ingredients: Rapeseed oil Product Description: King Shine Shuai Pai Cai Zi You (Rapeseed Oil) has been green food certified. This non-GMO product retails in a 1.8 L bottle. Positioning Claims: Ethical - environmentally friendly product, GMO-free Flavours: Unflavoured/plain

Pressed Rapeseed Oil Changkang Hunan Ingredients: Low erucic acid rapeseed oil (low erucic, food acids), rapeseed Product Description: Cheer Come Lv Tai Zheng Zong Ya Zha Cai Zi You (Pressed Rapeseed Oil) is made with rapeseed grown in a green ecological environment. This oil product is free from cholesterol, GMOs and flavourings. The product retails in a 1.8 L bottle. Positioning Claims: No additives/preservatives, low/no/reduced cholesterol, ethical - environmentally friendly product, GMO-free Flavours: Unflavoured/plain

Walnut Olive Oil Feng Rui Oil Ingredients: Walnut oil (pressed), olive oil, rapeseed oil, sunflower seed oil, corn oil (germs) Description: Feng Rui Jin Cai Hua He Tao Gan Lan You (Walnut Olive Oil) has been repackaged and is now available in a newly designed 1.6 L bottle. This wild walnut oil is blended with pressed olive oil. According to the manufacturer, walnut contains more than 90% of polyunsaturated fatty acids to help promote the growth of bones and blood circulation and prevent atherosclerosis. The oil is said to be ideal for middle-aged and senior groups. Positioning Claims: Other (functional), seniors (aged 55+), cardiovascular (functional), bone health Flavours: Unflavoured/plain




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According to Mintel’s Global New Products Database, 153 new food products that contained rapeseed oil as an ingredient, excluding cooking oils, were introduced in China between January 2007 and December 2011. None of these products identified the use of canola oil or cold pressed rapeseed oil as an ingredient.

Over this time period, the majority of new product introductions were comprised of entirely new products

(61%) , and new varieties or range extensions (26%). The remaining 13% was composed of new packaging (11%), and new formulations (2%).

Sauces and seasonings made up the greatest number of new product introductions, comprising almost

half of all new products introduced (48%), including cooking sauces, seasoning mixes, and pickled condiments.

Category # of

Products

Sauces and seasonings 70

Meals and meal centers 25

Snacks 21

Bakery 8

Soup 7

Processed fish, meat and egg products 6

Baby food 6

Dairy 5

Side dishes 3

Sugar & gum confectionery 1

Top 10 Categories of New Food Products Containing Rapeseed Oil or Canola Oil Introduced in China, January 2007 to December 2011

Top 10 Companies Introducing New Food Products Containing

Rapeseed Oil or Canola Oil in China, January 2007 to December 2011

# of Products

Chongqing Pangzi Tianjiao Food 5

Miaoguniang Food 5

Huafeng Food Industry 4

Present Wheater 4

Nestlé 4 Sichuan Guangyou Sweet Potato and Food Products

3

Chengdu Bang Bang Wa Industry 3

Tanyoto Food (Chengdu) 3

Synear Foods 3

Dandan 3




New Food Products Containing Rapeseed Oil or Canola Oil in China By Launch Type, January 2007 to December 2011

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011

New formulation New packaging New product New variety/range extension

# o

f P

rod

uct

s

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ANNEX B: NEW FOOD PRODUCTS CONTAINING CANOLA OIL

High Calcium Black Soy Milk Chungsoolim Ingredients: Water, soybean, black bean, black sesame seed, black rice, sweet potato (sweet), white sugar (granules), corn oil (germs), rapeseed oil, salt, food additives (xanthan gum, calcium carbonate, cholecalciferol, sodium hydrogen carbonate, sucrose esters of fatty acids (food acids), mono- and di-glycerides of fatty acids, flavouring substances) Product Description: Chungsoolim Qing Hua Gao Gai Hei Dou Ru (Qing Hua High Calcium Black Soy Milk) has an aroma of black soy beans and contains five times more calcium than ordinary soy drinks. This product is available in a pack containing 12 x 250 ml cartons. The pack is made using recyclable materials. Positioning Claims: Ethical - environmentally friendly package Flavours: Unflavoured/plain


Instant Vermicelli Sichuan Guangyou Sweet Potato and Food Products Ingredients: Vermicelli: Sweet potato (fresh, sweet), potato (fresh), Seasoning: Vinegars, palm oil, salt, rapeseed oil, chili pepper (powdered), monosodium glutamate, white sugar (granules) Chinese prickly ash (Chinese), spices Product Description: Guangyou Slim Instant Vermicelli is now available in a Hot & Sour flavour. It is made with selected sweet potatoes and is rich in dietary fibre. This non-fried instant vermicelli does not cause weight gain. This product is free from potassium alum and retails in an 80 g tub. Positioning Claims: High/added fibre Flavours: Hot and sour


Honey Barbecue Flavoured Potato Chips Premium Snacks Ingredients: Potato (selected, chips), sunflower seed oil, rapeseed oil, whey, white sugar (granules), salt, maltodextrin, honey, tomato powder (powdered), flavouring substances, garlic powder (powdered), vinegars, mustard seeds, yeast extracts (extract), chilli extract (extract), onion powder (powdered) Product Description: California Chips Honey Barbecue Flavoured Potato Chips are cooked only in non-hydrogenated vegetable oils and are free from cholesterol, trans fat (0 g trans fat per serving), wheat gluten, MSG (monosodium glutamate), artificial colours, artificial flavours and preservatives. The chips are all natural and are kosher certified. This product retails in a 170 g pack. Positioning Claims: No additives/preservatives, all natural product, low/no/reduced cholesterol, kosher, gluten-free, low/no/reduced transfat, low/no/reduced allergen Flavours: Honey and barbecue/BBQ


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ANNEX B: NEW FOOD PRODUCTS CONTAINING CANOLA OIL (continued)

Peppery Hot Noodle Sauce Sun Food Group Ingredients: Rapeseed oil, hot sauce, broad bean paste (paste), salt, chili pepper (powdered), Chinese prickly ash (Chinese), peanut, sesame seed, white sugar (granules), spices, food additives (monosodium glutamate, potassium sorbate, antioxidant) Product Description: A Xiang Po Peppery Hot Noodle Sauce is said to be tasty and ready in five minutes. This product retails in a 180 g pack containing six 30 g sachets. Also available in this range is Pai Gu Tiao Wei Liao Ban Mian Jiang (Rib Flavoured Noodle Sauce), which is said to be ready in five minutes. This product retails in a 180 g pack containing six 30 g sachets. Positioning Claims: Time/speed Flavours: Peppery hot/numbing hot


Flavoured Dried Mini Fish Jiangzaiya Ingredients: Fish and fish products, salt, rapeseed oil, soy sauce (brewed), monosodium glutamate, white sugar, spices, chili pepper Product Description: Jiangzaiya Feng Wei Xiao Yu Gan (Flavoured Dried Mini Fish) is said to be aromatic and tasty. This fish snack is made using wild fish from Dong Ping Lake of Shandong. According to the manufacturer, wild fish from Dong Ping Lake help to lower blood lipids, delay aging and replenish iron and calcium in the body. This product is available in a 100 g pack. Positioning Claims: Anti-aging, cardiovascular (functional) Flavours: Fish


Cappuccino Cream Cake Gandour Ingredients: White sugar (granules), vegetable oils (vegetable based) (palm oil, rapeseed Oil, corn oil), wheat flour, eggs, cocoa liquor, glucose syrup, milk solids (solid), glycerol, emulsifier, cocoa butter substitute, leavening agent (calcium carbonate, ammonium hydrogen carbonate, sodium hydrogen carbonate), natural flavouring substance (natural) (coffee, vanilla), salt, potassium sorbate, xanthan gum, ethyl alcohol (edible), calcium, vitamin D Product Description: Yamama Cappuccino Cream Cake is covered with milk chocolate and filled with cappuccino cream. It is enriched with calcium and vitamin D. This product is QS (Quality Safety) certified and retails in a 162 g carton containing six individually wrapped cakes. Also available in this range are Strawberry, and Hazelnut flavours. Positioning Claims: Added calcium, vitamin/mineral fortified Flavours: Coffee (cappuccino) and chocolate (unspecified)


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ANNEX B: NEW FOOD PRODUCTS CONTAINING CANOLA OIL (continued)

Consumer Trends: Cooking Oils in China © Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food Canada (2012). ISSN 1920-6615 AAFC No. 11476E Photo Credits All Photographs reproduced in this publication are used by permission of the rights holders. All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada. For additional copies of this publication or to request an alternate format, please contact: Agriculture and Agri-Food Canada 1341 Baseline Road, Tower 5, 4th floor Ottawa, ON Canada K1A 0C5 E-mail: [email protected]

Aussi disponible en français sous le titre : Tendances de consommation : Les huiles à cuisson en Chine

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada assumes no liability for any actions taken based on the information contained herein.

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