(ECNS) ? China is poised to overtake the United Sates as the world's largest retail market by 2018, with an annual growth of 8.7 percent, according to a report by PricewaterhouseCoopers (PwC).
Chinese enterprises accelerated the pace of overseas mergers and acquisitions (M&A) from 2010 to 2013, making a total outbound investment of $9 billion in food and beverages, PwC said in its 2015/2016 Outlook for the Retail and Consumer Products Sector in Asia.
The number of M&A in food and beverages accounted for 17 percent of total overseas M&A deals by Chinese companies in the first half of 2014.
Kevin Wang, leader of the PwC China Retail & Consumer sector, said the economic growth in the United States and recovery in the eurozone since 2015 will increase the demand for Asian products.
In the next five years, Asia will lead the growth of retail and consumer products, Wang said.
He also said China’s retailers will have to reconsider their strategies, especially luxury firms, as store closures, consolidation and even market exits have become more common, while the slowdown in economic growth is set to continue.
The report also says that food safety is becoming an increasingly prominent concern in Asia, where the food industry faces greater regulatory scrutiny.
