China’s booming food industry is driving prices to a three-year high, according to a new report by the country’s leading market research firm.
Chinese consumers are spending more and more on food, and while the country has been able to maintain a relatively stable inflation rate, prices have increased.
The report from the research firm McKinsey & Co. found that Chinese food costs in 2017 were $2.3 trillion, a 13.5% increase over the previous year.
The average price of Chinese noodles is currently $8.15 a kilo, and is expected to increase to $10 a kilogram in 2022.
The rise in costs comes amid a broader market recovery that has pushed the Chinese economy to a near-full-year peak.
The U.S. economy contracted in May, but the Chinese government has been trying to maintain the momentum.
“China’s economy has experienced a sharp and steady recovery,” said Andrew Wilson, chief economist at McKinsey.
“The recent slowdown in China’s economic growth is likely due to a number of factors, including slowing growth in emerging markets and improving governance and infrastructure.”
The McKinsey report found that food prices are expected to grow at an average annual rate of 5.3% over the next three years.
The growth rate is the largest in a decade and is likely to accelerate.
The food price growth has been fuelled by a shift in consumer tastes.
A new generation of consumers are switching to healthier food.
A growing number of people are buying food in bulk, rather than buying individually packaged items, and are purchasing fewer expensive brands.
“Consumers are also taking greater responsibility for purchasing food, including in their daily lives,” said Wilson.
“Consumers have more responsibility for food quality, and they’re more willing to spend on the basics such as fruits and vegetables.”
The report found food prices in 2017 reached an all-time high of $7.65 a kilos, up from $6.82 a year earlier.
It was the highest annual increase since 2008.
McKinsey’s report also found that inflation was running at a rate of 1.5%.
The McKinseys report does not include food prices at the retail level, which are not available.
A McKinsey spokesperson said that the company does not track food prices and has no information about the growth in food prices.
McKinsey &Co. said that Chinese consumers were spending more than $3 trillion on food in 2017, and had been doing so for the past five years.
It said that they had spent nearly half a trillion dollars on food for their households, and that the average Chinese household has spent $1,200 a year on food.