Food brands are being targeted for an aggressive expansion in China, according to a new report from research firm IBISWorld.IBISWorld said that food companies are targeting China to drive an aggressive push in a market that’s expected to grow at a slower pace than the US.
The food-based snack market is expected to hit $6.4 billion in 2020, according the report, which was compiled by the company.
The report did not give specific estimates for Chinese growth, but it said that China will account for $7.5 billion of the global snack market by 2020.
The report said that Chinese snack makers are “pushing hard” in a segment that is growing at a rate of roughly 6 percent a year, while the U.S. is expected have an annual growth rate of just 0.5 percent a years.
China, which is home to the world’s second-largest population, is also the world leader in the consumption of packaged and ready-to-eat snacks.
The IBISGlobal report said China’s overall growth in the snack market will reach about $6 billion in 2021.
The number of people eating snack food in China is expected in 2020 to reach 9.3 million, according IBIS.