May 30, 2023
The rise of raw egg consumption in China
An eFeedLink Hot Topic
According to the National Bureau of Statistics of China, the country's total poultry egg production was 34.56 million tonnes in 2022, a 1.4% increase, of which around 85% was chicken egg.
In China, egg consumption is divided between fresh eggs and egg-based products. Egg-based products make up only 5%-7% of the nation's total egg consumption. This is partially due to China's egg industry still being dominated by small and medium-sized farming, while industry concentration is not high. The egg production sales chain is still dominated by a traditional ‘wholesale market-farmers' model.
However, the consumption habit of Chinese consumers is gradually changing, and the consumption of raw eggs is increasing. Last year, Yellow Swan, a brand of raw eggs under the Fengji Food Group, raised ¥600 million in its sixth round of financing, attracting several capital funds.
According to the "White Paper on Edible Raw Eggs in China," nearly 80% of consumers in 2020 purchased ‘mid-to-high-end' eggs at ¥1.5 per egg or higher, compared with ¥0.5-0.8 per egg in the general egg retail market. Edible raw eggs accounted for nearly half of the market share.
Industry players expected the proportion of raw eggs in China to reach 30% in the near future.
Realising the potential of mid-to-high-end egg products, Yellow Swan has, since 2019, invested about ¥1.5 billion to establish the first domestic industry chain for raw eggs. Sales from this business were projected to exceed ¥1.5 billion in 2022.
Last year, Yellow Swan won an award for its creation of the first edible raw egg brand in China.
In addition to Yellow Swan, other traditional and new brands are also rushing into the edible raw egg market, including Sun Daily, Sakurahime Komachi (Shandong Komachi Egg Industry), Lanhuang (Shanghai Dahe Egg Industry), Chia Tai and Gegeda.
The taste and demands of consumers have been in constant change. As a booming consumption trend, edible raw eggs can bring relatively high returns to the players who seize the opportunity.
However, while the mid-to-high-end egg market (headed by edible raw eggs in terms of consumption) has great prospects, its penetration into the Chinese market remains challenging due to traditional eating habits.
- David Lin, eFeedLink