As people pay more and more attention to health in China, the consumption of organic vegetables, organic meat, and organic baby food is increasing year by year.
The report Organic Product Certification and the Development of Organic Industry in China 2022 released by the State Administration for Market Regulation shows that the sales of organic products in 2021 reached 95.1 billion yuan, an increase of 18.3% over 2020, ranking fourth in the world for many consecutive years.
Between 2018 and 2021, the number of people buying organic food at Hema Fresh quadrupled, with a penetration rate of nearly 30%. Many customers start by buying organic vegetables and gradually expand to various organic foods, among which female consumers with children are the main buying group.
In order to expand the product range, Hema Fresh's sourcing team has visited many organic farms in China to find better and more matching supply chain partners so that they can provide organic commodities continuously and stably.
Under the transparent supply chain model of Internet + Agriculture, Hema Fresh provides guaranteed sales for its producers by connecting stable consumer groups, which helps reduce costs and increase efficiency. Taking organic vegetables as an example, the co-construction farms of organic fresh products at Hema Fresh have expanded from the original 4 to more than 100, covering more than 20 provinces and cities across the country.
Through contract farming, upstream companies can use land more efficiently. On the sales side, more people have developed the habit of buying organic products thanks to various online and offline activities, as well as abundant and affordable commodities.
As of the end of August this year, 96 organic companies have joined Hema, of which 46 companies have gone out of the local market and entered the national market through Hema, and 12 companies have become Hema's strategic partners.
Source: China Economic