Chinese Sauces and Condiment Market Trends: Consumer Preferences, Sales Channels, and Opportunities for Thai Products

According to the 2024 China Condiment Industry Market Research Report by data mining and integrated marketing company iiMedia Research, Chinese consumers prioritize taste and safety when purchasing condiments, with 47.4% valuing taste and 43.9% emphasizing safety as key factors in their decision-making process. The shift in consumer demand highlights the growing interest in healthier options, particularly low-sodium and low-sugar condiments. As the condiments market evolves, supermarkets and e-commerce platforms have emerged as the primary sales outlets, with online channels gaining momentum due to their convenience.

China's condiment sector primarily caters to the food service industry, which consumes 49% of all products. Household use accounts for 34%, while processing firms contribute 17% to total consumption. This segmentation showcases the sector's reliance on commercial food preparation, though household demand is rising as consumers seek quality, safety, and consistent taste in their everyday meals. iiMedia Research predicts that the Chinese condiment market will reach a value of USD 96.45 billion in 2024, driven by the portability and reliability of condiment products.

Role of E-Commerce and Live-Streaming Platforms

The Chinese condiment market is characterized by a triad of significant sales channels: catering, households, and food processing firms. Online and offline sales networks are critical, with e-commerce and live-streaming platforms like Taobao and Tmall expanding their reach. Once relying on a dispersed network of distributors, traditional distribution channels have evolved into multi-level systems integrating direct sales with enhanced delivery services. Retail sales are increasingly dominated by online platforms, particularly for household consumers. China's e-commerce sales for food products, including condiments, increased by 25% in 2023, according to China Briefing, a top online platform providing business intelligence on China's economy, trade, and regulatory landscape, with live-streaming platforms like Douyin (TikTok in China) and Kuaishou playing a crucial role in promoting these products. E-commerce giants like Tmall and JD.com dominate household condiment sales, with Taobao’s live-streaming channel contributing to over 20% of condiment sales online.

Rising International Flavors and Key Players in China's Condiment Market

Key players in the Chinese condiment market include industry giants like Haitian, Lee Kum Kee, and Zhongjing Food. Haitian dominates the Chinese condiment market with a 12.5% market share, followed by Lee Kum Kee with 6.7% and Zhongjing Food with 4.3%. However, the market also shows openness to international flavors, particularly Thai seasonings, as Chinese consumers' palates evolve.

Korea and Thailand are China's top suppliers of sauces and condiments, with a combined import value of USD 67.45 million in 2023. The import value of Korean sauces has fallen since 2021, dropping by 26.41% from USD 46.39 million. The main factors that contributed to this decline are changes in consumer preferences and increased competition from other Asian suppliers, as well as the rise of domestic manufacturers reshaping the market. On the other hand, Thai import value has been steadily increasing since 2021, and despite a minor 2.81% year-over-year (YoY) growth, solid demand for Thai sauces and condiments remains.

Figure 1: China’s Import Value of Sauces and Condiments 2019-2023

Source: Tridge, TradeMap

Thai cuisine has gained a significant following in China, with Thai ingredients readily available in convenience stores and high-end department shops. Popular online platforms like Taobao, Pinduoduo, and Tmall are key distribution channels for Thai seasonings. Thai restaurants are expanding across China, attracting locals with distinct flavor profiles. Even Chinese hot pot restaurants, such as Issou Sukiyaki, now offer dishes featuring Tom Yum Goong, a famous Thai soup. The growing popularity of Thai ingredients in China stems from their natural composition and health-promoting qualities, which resonate with Chinese consumers' increasing health awareness.

As consumer preferences evolve towards healthier, more natural options, the Chinese condiment market presents significant opportunities for Thai seasoning producers to expand their reach. By leveraging the right marketing strategies and distribution channels, Thai entrepreneurs can capture the attention of health-conscious Chinese consumers and secure a foothold in this growing market.