China is set to buy up to 70 percent of the US grocery market by 2020, according to a report by the investment bank Morgan Stanley.
The country is currently the second largest market for groceries in the world, but Morgan Stanley believes the market could expand to as much as 75 percent of gross domestic product by 2020.
The report predicts Chinese grocery spending will grow by as much 10 percent per year, from $1.7 trillion in 2020 to $2.3 trillion in 2025.
“By 2020, the share of total US grocery spending in China could reach 80 percent,” the report said.
“We expect China to account for up to $1 trillion in gross domestic value added (GVA) by 2020.”
The report also predicts Chinese supermarket purchases will account for more than 60 percent of total grocery sales in the US by 2020 and 70 percent by 2025.
China’s $100 billion grocery industry is one of the fastest-growing sectors in the United States.
The country has been rapidly expanding its market share in grocery markets worldwide.
China also has the largest domestic supermarket market in the country with more than 1.2 million stores, according the Morgan Stanley report.
According to Morgan Stanley, the China market is expected to grow by more than 15 percent annually over the next 10 years.
In an interview with CNBC on Monday, Chinese President Xi Jinping said he believes China will be the biggest buyer of US groceries by 2020: