4.3 Sectors in China that make up China’s Bioeconomy
The bio-economy in China can be divided into several sectors, like agriculture, forestry, biotechnology, biofuels fishing, and each contributing to its overall GDP (Kircher, 2019).
In 2022, the agricultural, forestry, and fishing sector accounted for approximately 7.3% of China’s Gross Domestic Product (GDP). This sector plays a crucial role in the Chinese economy by contributing not only to food production but also to the bio-economy through the provision of raw materials for various industries.
Agriculture sector:
The agricultural sector in China encompasses a diverse range of activities, including the cultivation of crops, livestock farming, and aquaculture. These activities collectively contribute to both food production and the bio-economy:
1. Crops: China is a major producer of a wide variety of crops, ranging from staples like rice, wheat, and corn to specialty crops such as tea, cotton, and fruits. The agricultural sector’s crop production not only fulfills domestic food requirements but also serves as a source of raw materials for the food processing and bio-based industries.
2. Livestock: Livestock farming in China includes the rearing of animals like pigs, chickens, and cattle. These livestock contribute significantly to the country’s meat, dairy, and egg production, addressing the growing demand for animal-based protein sources.
3. Aquaculture: China is one of the world’s leading producers of fish and seafood. The aquaculture industry plays a pivotal role in meeting the global demand for aquatic products and contributes to the bioeconomy by providing raw materials for various applications, including pharmaceuticals, cosmetics, and food products.
Forestry sector:
China also boasts a significant forestry sector that extends its contributions to the bioeconomy:
1. Timber Production: The forestry sector in China is responsible for the production of timber and wood-based products. This includes the harvesting of trees for construction materials, furniture, and paper production. Timber from Chinese forests serves as a valuable resource in various industries, especially in the construction and manufacturing sectors.
2. Bio-Based Products: The forestry sector’s output goes beyond timber to encompass a wide range of bio-based products. These products include pulp and paper, wood-derived chemicals, and bioenergy sources. The utilization of wood and forest resources in bio-based industries aligns with the principles of sustainability and contributes to the bio-economy’s growth.
The agricultural and forestry sectors in China collectively are essential in supplying raw materials to established and developing bio-based industries. A developing field of study, the bioeconomy emphasizes the sustainable use of biological resources in a range of industries, including healthcare, energy, forestry, medicine, and environmental protection.
Biotechnology and Pharmaceuticals sector:
This sector involves research, development, and production of biopharmaceuticals, vaccines, and genetic engineering. From 2008 to 2020, the Chinese government has been funding biotechnology research and development with US$3.8 billion (Xiao & Kerr, 2022). R&D accounts for nearly 2.5% of GDP, and over 5 million people (full-time equivalents!) are academically trained scientists or technicians.
Food and Beverage:The food and beverage industry encompasses everything from traditional Chinese cuisine to processed foods and beverages. The food and beverage (F&B) industry in China is expanding quickly. Revenue is anticipated to reach US$176 billion in 2021, accounting for 63% of global F&B revenue. Between 2021 and 2025, the annual revenue growth rate is anticipated to be 8.38%. China’s final consumption as a percentage of GDP was 56% in 2019, a low number when compared to the US’s 81.8%, according to World Bank data. According to a recent Morgan Stanley report, consumer spending in China is predicted to more than double over the next ten years, with a preference for services over goods. China’s private consumption is anticipated to total US$12.7 trillion by 2030, which is roughly equal to what American consumers currently spend. In terms of F&B categories, we anticipate above-average growth rates for packaged drinks, premium alcoholic beverages, yogurt and fresh dairy, innovative compound condiments, and health supplements. Having said that, we see investment opportunities in premium story-building brands and businesses that provide nutritious options.