France Ramps Up Investment in China Recent data from the Ministry of Commerce highlights a significant surge in French investments in China, marking an 84.1 percent increase in 2023. This robust growth underscores the deepening trade ties and potential between the two nations.
Danone Thrives in Sino-French Trade Boom As one of the key players in the global food and beverage industry, Danone has emerged as both a witness and beneficiary of this positive trend. Bruno Chevot, the President of Danone China, North Asia, and Oceania, acknowledges the 60th anniversary of Sino-French diplomatic relations as a pivotal moment for the company. Since its inception in the Chinese market in 1987, China has ascended to become Danone’s second-largest market, showcasing the company’s significant impact and growth prospects in the region.
Danone’s Expanding Chinese Operations Danone’s strong presence in China is evidenced by its operation of 10 factories and employment of over 8,000 staff, contributing to approximately 10 percent of the company’s total turnover. Chevot highlights the enduring Sino-French friendship as a key factor in unlocking further growth opportunities for businesses in both countries. Danone’s strategic investments in China, particularly in areas like scientific research and advanced nutrition, are a testament to its commitment to the market.
Adapting to China’s Consumer Trends Aligned with local consumer preferences, which increasingly prioritize health and scientific innovation, Danone is set to adapt and enhance its product offerings. This shift is in response to a heightened demand for health-focused products, as indicated by the Nielsen IQ Global Consumer Outlook 2023. The company is poised to strengthen its production in sectors like healthy hydration, healthy aging, and medical nutrition, aligning with China’s “Healthy China 2030” initiative.
Danone’s Role in Sino-French Cooperation In addition to commercial achievements, Danone has played an active role in Sino-French cooperation. During President Emmanuel Macron’s state visit in 2023, Danone China signed an MOU with the China Association of Enterprises with Foreign Investment, committing to rural development and poverty alleviation in China. The company pledged 23 million yuan in support of these initiatives.
Celebrating 60 Years of Diplomatic Ties The 60th anniversary of Sino-French diplomatic relations in 2024 will be marked by various national-level celebrations. France, as the country of honor at the 7th China International Import Expo (CIIE), will see Danone participating for the seventh year in a row, introducing nearly 100 new products to the Chinese market. Danone’s continued involvement in the CIIE is a clear indication of its commitment to bringing global innovations to the Chinese consumer base.
Related: Danone’s €100 Investment in Mexico
