Exploring Opportunities and Strategies for Traditional Industries Seeking Upgrade

In recent times, China's canned food industry has witnessed a surge in overseas sales, portraying a vivid picture of the robust capabilities of Chinese manufacturing. Traditional industries, once labeled as "low-cost," are now finding avenues for upgrading.

Products like canned bamboo shoots and mushrooms are experiencing expedited customs clearance, with a significant increase in the shipment of canned mushrooms and seafood. Tomato canned goods, in particular, have become a hot commodity. Recently, Chinese canned food products have been selling well in multiple countries overseas, showing a continuous rise in export volume and adding a bright spot to stabilizing foreign trade. According to data from the China Canned Food Industry Association, China's canned goods export volume reached 3.125 million tons in 2022, with an export value of 6.89 billion US dollars. This marks a 12% and 22% year-on-year increase, respectively, setting new records in recent years.

Why are Chinese canned goods so popular overseas?

This success is attributed to the rapid changes in market demand. In the past two years, inflation rates have soared in some countries, leading to a substantial increase in local food prices. In contrast, China's overall price level has remained stable. This stark contrast has enhanced the already existing price advantage of Chinese canned products, resulting in a more robust growth momentum in overseas markets.

This success is also supported by a robust supply side. Examining the structure of exported products reveals that the popular categories of canned goods overseas are no longer limited to traditional fruit and vegetable cans. Various types of mushrooms and ready-to-eat canned goods continue to see a growth in export volume. High-value-added canned goods like seafood and meat are also steadily increasing in export volume. Innovations such as braised meat and eel canned goods have gained popularity in Southeast Asian markets. The reason these small canned goods can shine on the world stage lies in their continuous diversification and high-end development. By consistently meeting the diverse and multi-level demands of overseas consumers, these products continuously discover business opportunities and expand their markets.

If we extend our observation of the industry's development cycle, it becomes evident that China's canned food industry has been striving to go global for a long time. From 2001 to 2022, the annual average growth rates of total production, export volume, and export value of canned goods were 7.77%, 5.88%, and 11.53%, respectively. Currently, Chinese canned goods are exported to more than 200 countries and regions, making China the world's primary producer and exporter of canned goods. Years of international competition have forged a solid industrial support system. Advanced technologies like improved ventilation sterilization have been successively applied, promising new materials have been developed, and highly intelligent automation equipment has been widely adopted. These efforts have laid a solid foundation for the industry's development and instilled confidence and momentum for continuous overseas marketing.

The surge in overseas sales of canned goods not only reflects the robust capabilities of Chinese manufacturing but also provides a roadmap for many traditional industries that were once labeled as "low-cost" to seek upgrades. The key lies in adhering to innovation, firm transformation, and continuous efforts in expanding product variety, improving quality, and building brands. By stimulating, leading, and creating new demands through high-quality supply, Chinese manufacturing still has significant potential and broad prospects.

About TAN
China's Second Largest Canned Food Exporter
Zhangzhou Tan Co., Ltd. is a professional international supplier of canned food and a leading exporter of canned food in China.
TAN, let "healthy food" serve the society and let "Made in China" ring the world. 
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