KOTRA: "Targeting China's Refrigerated and Frozen Food Market, Utilizing Shandong Province is the Key"

KOTRA highlights the importance of Shandong's logistics
Single-person households drive demand for convenience foods
Joint logistics centers recommended for SMEs entering China

As the fresh food market in China continues to grow, opinions have emerged that Korean companies should seek export opportunities by utilizing the logistics infrastructure in Shandong Province.

The Ministry of Trade, Industry and Energy and KOTRA presented strategic directions by analyzing the Chinese market and showcasing success cases in the "Refrigerated and Frozen Food Export Guide to China" report published on the 16th.

The size of the Chinese refrigerated and frozen food market reached 125 trillion KRW (642.4 billion yuan) last year, growing more than 10% annually. Single-person households lead the demand for refrigerated and frozen foods due to their high demand for convenience and processed foods.

According to a population survey conducted by the National Bureau of Statistics of China, as of 2021, 25.4% (125.49 million households) of the total 494.16 million households in China were single-person households. This means one in four households is a single-person household.

Through the report, KOTRA emphasized that "cold chain infrastructure and rapid local customs clearance are crucial to leveraging the rapidly growing Chinese fresh food market as an export opportunity."

Geographically close to Korea, Shandong Province is considered a key region for targeting this market. Shandong ranks first in China in terms of cold chain logistics warehouse capacity capable of storing and transporting fresh food. The Shandong port has a highly active rapid customs clearance system for food, making it strategically valuable. For example, over 90% of fresh milk exports to China are distributed throughout the country via Shandong ports.

If shipments depart from Incheon in the evening and arrive at Qingdao Port the next morning, same-day customs clearance is possible. Delivery across China is completed within three days.

KOTRA recommended that small and medium-sized enterprises (SMEs), which find it difficult to establish overseas logistics centers, actively utilize the joint logistics center project. This project supports the entire logistics process, including local warehousing, customs clearance, packaging and labeling, and inland transportation, reducing the burden on SMEs.

Hwang Jaewon, head of KOTRA's China regional headquarters, stated, "The rapid growth of the Chinese refrigerated and frozen food market can become a new export opportunity for our companies," and added, "We will continue to actively support our export companies to effectively enter the Chinese market."

The report can be downloaded for free as a PDF file from the KOTRA website and Overseas Market News.