After decades of rapid economic growth and industrialisation, China has become the world’s largest producer in absolute terms of food loss, waste, and single-use plastics, occurring across various stages of the production and consumption cycle. While China’s vast population and large-scale food production contribute to this material waste, the food delivery industry—the largest globally—is the biggest contributor. To address these issues and align with sustainability, carbon peaking, and emissions reduction goals, China has developed a regulatory framework promoting waste reduction and recycling. This has created strong demand for solutions that reduce environmental pollution, waste, and emissions while enhancing recycling efficiency—offering significant opportunities for European SMEs.
This report starts with an overview of the market, its background, and its current challenges. The sector is shaped by strict regulations, rising consumer awareness, and technological advances addressing food waste and single-use plastics. Opportunities include biodegradable materials, waste-to-energy solutions, and food-grade recycling, with domestic mid-sized private firms dominating the market alongside some foreign players. The second chapter details market entry requirements, emphasising the need to navigate a complex regulatory environment involving multiple agencies. While food-grade recycled plastics remain restricted, recent initiatives signal potential openings. EU SMEs can explore entry options such as partnerships with local distributors, direct operations, or publicly funded joint R&D and demonstration projects.
In the third part, we highlight key opportunities and practical tips for EU SMEs, focusing on high-demand technologies and strategies to address challenges, particularly in intellectual property rights protection. Finally, the fourth chapter presents two case studies: one on automation systems for plastics recycling and another on EU-China collaboration under Horizon Europe.
China’s F&B waste reduction and recycling market presents promising opportunities for European SMEs, with strong policy support, increasing demand for sustainable products, mature industrial chains, and technological innovation in areas such as bio-based plastics and waste-to-energy. EU SMEs, often equipped with innovative and highly regarded EFSA-certified solutions, can leverage these strengths to succeed. However, market success requires thorough preparation, significant resources, and a long-term commitment to navigating China’s evolving regulatory landscape and sustainability goals.
Executive summary
1. Sector overview
1.1 Development background
1.2 Challenges and market needs
1.3 Market structure and key players
2. Market entry requirements for EU actors
2.1 Encouraged sectors for foreign investment
2.2 Regulatory landscape, standards and certifications
2.3 Food-grade recycled plastics
2.4 What market entry options?
3. Opportunities, challenges and tips
3.1 Tips from EU SMEs
4. Case studies
4.1 A leader in automation systems for plastics processing
4.2 EU-China joint projects under Horizon Europe
Read the full report online here.
