Want Want China to build dairy drinks plant

Want Want China has set up a factory to produce dairy drinks, a plant that will be the Hong Kong-listed company’s biggest.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

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A spokesperson for Want Want said the “model plant” is, at a cost of CNY700m (US$107.2m), “the group’s biggest investment in the mainland”. It is located alongside Want Want’s existing plants just outside Changsha in China’s central Hunan province.

Testing is now underway on the production lines, according to local Chinese language media.

Want Want officials did not comment further on the plans because the company’s annual results are due to be published on 15 March.

Chinese language media has also reported Want Want is also moving into baby formula. A Want Want official had told local newspapers in Hunan that “the end of [China’s] one-child policy obviously means demand will increase” and said the company is in talks with Japanese suppliers for milk while weighing up dairies in New Zealand and Australia.

Free Report

What’s the forecast for the food and grocery industry?

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

By GlobalData

By downloading this case study, you acknowledge that GlobalData may share your information with GlobalData and that your personal data will be used as described in their Privacy Policy