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Chinese dragon keeps roaring: China's explosive economic growth and cheaper manufacturing spell big business for Western brand owners

Both Nestle and Coca-Cola record sales of more than U.S. $1 billion in the Chinese packaged food market. That market is estimated to be worth in the region of U. S. $39 billion (30 billion [euro]).But this does not scrape the surface of value growth in a country of more than a billion people, of whom 885 million are between the ages of 15 and 64, and where gross domestic product is rising by some 9 percent per year.


This rosy picture contrasts with the economic status of China's citizenry. The average annual disposable income is $545. U.S. citizens earn $37,000 on average.This disparity could result in social problems, despite the fact that figure is projected to rise to $5,000 within 13 years. And, of course, it puts high-value Western products out of financial reach for the average consumer.Nonetheless, this is not discouraging major packaging users from entering the market. Just as night follows day, this means a corresponding interest from the world's major paper and board producers that want to continue serving their customers under the 'think global, act local' slogan.However it is the indigenous industry that is leading the way in servicing the multi-national entrants to this growing market.

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