2020 CIIE Recap: New Products and Trends in Food and Cosmetics Sectors

General overview

1. The third CIIE has an exhibition area of 360,000 square meters, almost 30,000 square meters larger than last year's event.

2. Alibaba partnered with nearly 1,000 overseas brands to participate in the CIIE. Overseas brands on the cross-border e-commerce Tmall Global exhibited over 1,400 new products.

3. Japan has the largest number of exhibitors, with more than 400 exhibitors. Meanwhile, American companies had the largest exhibition area.

4. The number of buyers surpassed 400,000. Among the registered purchasers, 2,238 have an annual turnover of more than US$1 billion, and nearly 1,400 have an annual import value of more than US$100 million.

5. More than 500 enterprises from 47 Belt and Road countries and regions participated in this year’s CIIE. The expo has also hosted exhibitors from 30 emergent countries with an exhibition area of more than 4,000 square meters.

6. Over 50 Fortune 500 Global companies and leading enterprises made their debut at this year's expo. Nearly 80% of the world's top 500 companies as well as industry leaders that participated in previous expos returned to Shanghai this year. Over 400 imported cosmetics enterprises also participated.

7. The Food and Agricultural Products Pavilion has the largest number of exhibitors, with 1,264 companies from 93 countries joining the Expo.

8. The third CIIE accumulated US$72.62 billion's worth of tentative deals, an increase of 2.1% compared with that of last year.

9. 29 enterprises registered for the fourth CIIE in 2021 on the first day of this year's Expo, and nearly 100 exhibitors had already signed attendance deals for the next three Expos before the opening of the third CIIE.

Company dynamics

Cosmetics
Company	New Brands	New Products	New Tech
L'Oréal	Four high-end fragrance brands: Valentino, Maison Margiela, Viktor&Rolf, Ralph Lauren Fragrance; Essential oil skin care brand Decléor.	La Roche-Posay sunscreen products.	The world's first home customized cosmetic formulation concept product Perso; The world's first battery-free portable skin environment detector, La Roche-Posay "UV SENSE"; The world's first artificial intelligence makeup recommendation application "Face Architect" under Armani Beauty; L'Oréal Group's world's first brand virtual spokesperson, "Ms Sister" from Meiji brand; KÉRASTASE Smart Scalp Hair Quality Tester 2.0.
Estee Lauder	High-end hair brand Aveda; Customized perfume brand Le Labo; Beauty makeup brands Too Faced, Smashbox and Becca.	KILIAN and Editions de Parfums Frederic Malle perfume blend series; High-end skin care brand LAMER concentrated night balm.	Aveda Professional Scalp Hair Quality Tester; M·A·C new retail equipment that empowers makeup through the AR facial 3D technology of virtual makeup; IMATCH SKINCARE FIND DEVICE.
P&G	/	Oral-B iO Cloud Brush Rose Pink Special Edition; Vicks First Defence Nasal Spray; JOY Dishwasher Capsule; FAB Ultra Repair Cream.	/
Unilever	/	Sensitive skin brand Simple toner and makeup remover.	/
Johnson&Johnson	Skin care brand Exuviance and hair growth brand Rogaine.	Neutrogena's new vitamin A alcohol series customized for the Chinese people.
Shiseido	Skincare brand The Ginza and BAUM.	/	/
KAO		Curél moisturizing spray essence water.	Fine Fiber Technology.
Amorepacific	Skin care brand SIENU.	Innisfree environmental-friendly series.	Scalp health tester.

Food
Company	New Products	Exhibits
Ausnutria	Oz Farm 100% Pure Camel Mmilk Powder and Oz Farm Probiotic Camel Milk Powder.	Ausnutria exhibited over ten brands, including Kabrita, Hyprocal 1897, Neolac, Allnutira, etc.
Abbott	Abbott Eleva Blue Bottle range and Similac A2 organic infant formula milk powder.	Abbott showcased more than 100 exhibits including “one-stop solutions” for major public diseases such as cardiovascular and diabetes, and nutrition products covering the entire life cycle.
Danone	Danone Nutricia's world's first mother probiotic product; Danone AptaGrow children’s milk powder; Danone Nutricia Fortini nutritionally complete formula for children between the ages of 1 and 10 who suffer from malnutrition.	Danone displayed nearly 200 health products, of which 50 products made their debut in China. The number of exhibits has increased by 50% year-on-year for two consecutive years.
Yili	Yili grass-feeding full cream whole/skim milk powder; Yili I-Comfortable milk powder.	Yili exhibited 9 categories of products under global cooperation.
Nestlé	High-end hypoallergenic dietary supplement brand Pure Encapsulations.	Nestlé exhibited more than 250 products, of which 25 products made a debut in the Chinese market for the first time.
Ferrero	Two new flavors of Kinder Bueno-Dark Chocolate and White Chocolate; Kinder Cards, sweet biscuits designed for kids and teenagers; Nutella B-ready with hazelnut and cocoa butter filling; Nutella & Go; Nutella Biscuits.	Ferrero brought over 20 varieties of products, covering chocolate, biscuits, sweets and sauce, among which eight products debuted in China.
Mille	Joining hands with the Nordic infant food brand Semper to launch Semper Organic fruit and vegetable puree products.	Mille displayed full range of milk powder products.
a2	a2 milk ® whole milk and a2 ® Smart Nutrition™ children's milk for children 4 years and older.	/
Mengniu Yashili	Doraler Xinchen children's milk powder; Doraler goat milk powder cross border version.	/
Mars	MasterFoods honey, using Mars patent packaging.	/
Fonterra	Anchor probiotic milk powder; Anmum maternity milk powder; Anchor high calcium low fat milk; Anlene milk powder for middle-aged and elderly; Two new cream products.	Fonterra exhibited products covering milk powder, cheese and dairy ingredients.

Deals highlights

1. UK firms made deals valued at 430 million pounds with Chinese companies. The Expo also resulted in thousands of new connections between UK and Chinese companies, with around 120,000 unique visitors to the new business matching platform established by the China-Britain Business Council (or CBBC).

2. Chilean companies and Fresh Hema signed an import order for 1 million boxes of Chilean cherries. In the coming year, Fresh Hema will place a total of about RMB280 million in intended purchases from Chile's top 10 cherry suppliers.

3. Carrefour signed a purchase agreement with the global meat producer Brazilian JBS Group. Before the end of this year, JBS will enter the Carrefour store in East China.

4. Meadow Fresh milk and JD signed a strategic cooperation agreement for 2021, and the two parties signed an annual sales target of 150 million yuan.

5. Chinese and Australian companies have signed more than 20 cooperation agreements worth at least AU$640 million (about RMB3.2 billion).

ChemLinked Insights

ChemLinked summarized the following five trends for the 3rd CIIE food and cosmetics sectors.

1. Live-Streaming was booming.

Taobao top anchors Li Jiaqi and Viya hosted CIIE live-streaming sessions to show new products to consumers. They also collaborated with CCTV to host Taobao live-streaming shopping sessions for CIIE imported products from five European countries of Italy, Russia, France, Spain and Germany. The two live-streaming shopping sessions achieved total sales of more than 140 million yuan. French goods sales exceeded 43 million yuan, ranking first among the five countries.

In addition to aforementioned web celebrity anchors, L'Oréal, Unilever, and other companies set up live-streaming rooms to directly connect with their consumers. Foreign diplomats also hosted live-streaming sessions to promote specialty products of their countries.

2. Beauty brands were more tech-savvy.

Many brands introduced smart beauty devices at the 3rd CIIE.

Amorepacific's high-end hair care brand Ryo brought scalp health tester, which can analyze the scalp and hair from the various properties of hair care. These properties include: Hair Loss type, Hair Density, Hair Diameter, Scalp condition, Keratin levels, Oil content, Sensitivity, pores and hair condition.
L'Oréal exhibited the world's first home customized cosmetic formulation concept product Perso. It can customize skincare products, liquid lip gloss and foundation according to consumers' skin features and needs, local environmental conditions, and preferences.

3. Greater alignment with epidemic needs.

With the epidemic bringing about an innumerable increase in the public's awareness of personal hygiene and health care, home cleaning, disinfection and personal health care products are emerging.

Johnson & Johnson launched the public health and anti-epidemic special booth for the first time, and the exhibits ranged from maternal and child care to skincare and personal care.
Procter & Gamble introduced Vicks First Defence Nasal Spray. It is a nasal spray intended to stop a cold before symptoms get worse at an early stage of a cold. It is intended for adults and children over 12 years old.
Kao brought many brands such as "Attack", "Quickle", "Joan", "RESESH" and "Cucute" with JOAN sterilization spray making its debut at CIIE. It focuses on household clean wiping and stands out by using a new formula of non-alcoholic "fermented lactic acid", which can reduce bacteria by 99.9%.

4. Perfumes were in the spotlight.

This year perfume eclipsed makeup products for the amount of exhibits.

L'Oréal debuted 5 new brands in mainland China through the CIIE, including four high-end fragrance brands Valentino, Maison Margiela, Viktor&Rolf, and Ralph Lauren Fragrance.
Estée Lauder showcased KILIAN and Editions de Parfums Frederic Malle's various fragrance special series.

5. Expedited Entry of FSMP Products

During the third CIIE, the Government included formula foods for special medical purposes into the temporary license issuance scope. Prior to that, the temporary license for special food was only available for infant powder and health food. This new policy has facilitated the entry of more FSMP products to China as shown by Danone obtaining the first batch of temporary licenses for 50 special foods, half of which were FSMP.

Despite the global epidemic, China held this global trade event on schedule. Suffice it to say, China's position as a key global consumer market and supply chain hub remains stable.

It's undeniable that CIIE has accelerated the entry of global products into the Chinese market. With prosperous cross-border e-commerce and booming live-streaming, the breakneck speed at which exhibits can become commodities is changing the game. ChemLinked remains optimistic about the Chinese import market due to Chinese consumers’ massive demand for a high quality life. We are also ready to help overseas companies enter the Chinese market smoothly and successively.