Despite COVID-19 still hurting large parts of the world, Asia's biggest food and beverage exhibition, called SIAL China, is currently taking place in Shanghai. Global food exporters are capitalizing on opportunities to sell their products in China, as the domestic economy roars back.

The three-day event is hosting more than 4,500 exhibitors from over 30 countries and regions this year, with the number of exhibitors increasing two-fold compared with 2020.

Liu Yangxia, director of China Commerce Development Center, said via video that SIAL China ranks the first in the world in the scale of international comprehensive food exhibitions.

"Last year, even under COVID-19, as the main responsibility body of the exhibition, we spared no effort to organize SIAL China 2020 under enormous pressure and risk, which is in line with our attitude of being highly responsive to all partners and exhibitors," said Liu.

As the pandemic is largely brought under control in China, demand in the country is slowly getting back on track.

Bai Xuejing from Guangdong (China) Imported Food Association brought about 30 importing companies to the affair.

"The coronavirus impact is less severe compared with last year. Chinese import companies have slowly adapted to the situation. The only problem is international logistics and customs clearing, which takes longer than in pre-pandemic times. Now business in China is returning to normal," said Bai.

China lowered tariffs to boost food business last year

In the hope of boosting the international food business, Chinese authorities lowered the tax rate for over 80 food and beverage-related items in February last year, when the country was bogged down in the coronavirus epidemic.

"In order to better meet the local population's needs, address the relevant urgent shortages within the country or ensure no shortage of items with unique foreign characteristics, adjustments will be made to the import tariffs imposed on food items such as frozen pork, frozen avocados and non-frozen orange juice," said the Chinese Ministry of Finance in a statement last year.

Chief among them are tariffs on imported frozen pork reduced from 12 to 8 percent. As a result, Ireland's pork and beef exports to China, among others, reached a record high last year.

"I've been here for several years now, and China has consistently lowered its tax rates and cutting customs tariffs towards food products in particular. Ireland has definitely benefited from that. It makes our products more price competitive compared to other suppliers from the rest of the world, also in relation to domestic products as well. Lower tariffs are always welcome," said Conor O'Sullivan, China manager of the Irish Food Board.

E-commerce buoyed China's food and beverage revenue

The rapid development of China's e-commerce since 2000 has spurred the growth of China's food and beverage segment.

Statista, the world's leading market and consumer data provider, predicted that food and beverage revenue via e-commerce in China this year could surpass $170 billion, accounting for over 60 percent of the world's total. It also said it is likely to maintain an annual growth rate of over 8 percent, with a projected market volume of over $244 billion by 2025.

O'Sullivan believes China's demand has continued and is now "stronger than ever."

"China has been open and functioning as normal for the vast majority of last year when other markets have been closed or restaurants in other markets have been closed. China has been a very important market to have continued access to," said O'Sullivan.