Global Distribution Group to Expand Distribution of Organic Products in China
Global Distribution Group will continue to increase its business in China, strengthen the relationships with current distributors and develop new distribution channels for organic and natural products.
Oakland, June 23, 2015 (Newswire.com) - Organic and natural food is one of the sectors with the highest growth rates in the global food market. In Asia-Pacific, awareness of the organic and natural food benefits combined with the increasing concern for food safety, and raising disposable income and purchasing power leads to increased demand for organic and natural products.
China is emerging as the top importer for US food products. There are three factors leading to the explosive growth: (1) the increased domestic food safety issues; (2) the organic certification is seen as a guarantee for product quality and safety; (3) the growth in the high-income groups; (4) the evolution of the sales channels, with more dedicated organic retailers as well as high-end supermarkets, hotels and restaurants that carry natural and organic products.
In addition China has recently appointed trial free zones in major cities, which creates more opportunities for imports. There are challenges as well, in particularly driven by tariffs and China’s complicated organic certification system introduced in April 2014. Still China is the highest grocery market, and is experiencing a rapid growth in the organic segment of more than 20% through 2020. Chinese organic certification groups are also signing more mutual recognition agreements with international organic certifiers helping the organic market growth.
An increasing demand from internationalized groups, with high disposable income and the absence of import duties and trade barriers on food has resulted in Hong Kong’s rise to the 7th largest market for selected U.S. organic exports.
In an effort to capture these opportunities, Global Distribution Group has decided to expand its operations in China and Hong Kong and develop new distribution channels for Organic and Natural products in the region.
Global Distribution group works with local representatives in all Chinese markets. All sales representatives are highly experienced and have a very good understanding of the local business practices.
Global Distribution Group will continue to strengthen its presence in the Asia -Pacific region with particular focus on China and Hong Kong.