For those interested in investing in China – the place to be now is in food.  New Research from the UK is pointing to China as they are set to take over the US market as the biggest grocery market in the world.  When 2011 closed, the Chinese grocery sector was worth $970 billion and the US market was worth $913.5 billion. These figures, from IGD are just the beginning.

Analysts believe that China‘s grocery consumption will reach 918 billion pounds by 2015.  The dramatic rise is due both the economic growth in China and to the inflation of food prices.  The Chinese people are also changing their diet, moving away from rice and pork to eat more dairy products, wheat, grains, white and red meat and other products that all help boost the prices around the world.

As Cecile Riverain, IGD’s international research manager told CNBC.com, “Despite the slowdown, measures to stimulate Chinese domestic consumption present an opportunity for retailers. For example, higher wages could boost disposable income and increase the number of potential customers.”

Chinese people are also eating out more, boosting Western fast food retailers, acording to Sharma.  KFC, which has a larger presence in China than McDonalds, is set to benefit from these trends.