In September 2026, a research report from Kaiyuan Securities was widely circulated in food export circles. One line in the report struck a nerve:
"Chinese food going global is transitioning from a 'channel distribution dividend' to a stage where 'product and operational capabilities' are the deciding factors."
In plain English: In the past, getting your products onto U.S. supermarket shelves meant you'd won. Now, getting on the shelf is just step one—whether it actually sells is the real test.
The first to feel this shift aren't Chinese exporters—it's American retailers.
The report notes a significant transformation among mainstream North American retailers: they are moving from "conservatively relying on historical data and homogenized assortments" to competing on "novelty" and "exploratory appeal." They are now proactively opening shelf space to differentiated, exclusive products and significantly shortening the evaluation period for new products, supporting small-scale rapid testing.
What does this mean? In the past, Chinese food brands had to wait for buyers to "take a liking" to them. Now retailers come to you—but give you less time to prove yourself.
Sell well, stay. Don't sell, delisted. No second chances.
One judgment in the report deserves to be written down by every food exporter:
"The real barrier isn't the supply chain—it's incremental category innovation and localized operations."
Supply chains are a traditional strength for Chinese companies—production capacity, cost, delivery. These hard skills were honed long ago. But what the North American market wants now isn't "yet another cheap product."
The report analyzes a key logic: Asian cuisine has deeply penetrated mainstream American daily life, and consumer demand for authentic, regional flavors continues to rise. But Asian cooking is complex and expensive to replicate at home, so compound seasonings and frozen Asian foods naturally become high-value home alternatives with solid demand fundamentals.
Early movers have already captured mindshare through scenario-based positioning. What about latecomers? Only differentiated entry works. Not "a better Lao Gan Ma"—but "that missing flavor in American kitchens."
If the research report provides the "theory," Yili's actions in the North American market provide the "answer."
What did Yili do in North America? It didn't just serve the "nostalgia shelf in Chinese supermarkets." From 99 Ranch Market in the San Francisco Bay Area to H Mart in New York, and on to Walmart, Costco, Sprouts, and Target—Yili products have entered over 2,000 offline retail locations, covering major U.S. metropolitan areas and reaching over 130 million consumers.
It's not "a Chinese brand selling to Chinese people"—it's "a Chinese brand selling to Americans."
Ambrosial holds nearly 100% of the North American Chinese-brand ambient yogurt market; Yili's frozen dessert line accounts for over 97% of the North American Chinese-brand ice cream market; Kabrita has become a leading goat milk powder brand on Amazon; Westgold butter saw 341% year-over-year sales growth in the U.S. market in 2025.
Behind these numbers is a victory of localized operational capability—products adapted to North American tastes, channels covering mainstream supermarkets, and brands building consumer awareness. The core logic of Yili's North American business is captured precisely by the report: "Polish products with international standards; open markets with localized operations."
The case of Golden Monkey also illustrates the point.
This heritage candy brand with over 30 years of history designated 2026 as its "first year" of going global. The first thing it did wasn't "move domestic products overseas"—it was localizing flavors. International markets prefer high sweetness; domestic consumers prefer low sugar—the two are exact opposites. Step two was innovating based on local mainstream tastes: Western markets have high acceptance for "sour strip candy," so Golden Monkey quickly launched a localized product—"Koushui Dada Sour Strip Candy."
Golden Monkey's marketing director Zhang Yan put it directly: "Adapting taste is the foundation for competing globally, but the brand's goals go far beyond that." What they're doing is differentiated positioning, technical barriers, and independent R&D—several products currently have no direct competitors in domestic or international markets.
This is what "capability competition" means: it's not about who's cheaper—it's about who can make what others can't.
If you're a food supplier exporting to the U.S.:
First, re-examine your "selling point." If your core advantage is still "cheap," you're in danger. North American retailers now want differentiation, novelty, and exclusivity. Does your product have something that makes buyers' eyes light up?
Second, localized operations aren't an "option"—they're the "entry ticket." Flavor adaptation, packaging design, channel fit, brand communication—each one tests your "on-the-ground capability." Yili's 2,000 retail locations weren't built overnight, but the direction is right.
Third, "small steps, fast iteration" is more realistic than "one big splash." North American retailers now support small-scale rapid testing, but evaluation periods have been significantly shortened. This means you have a chance to test—but the window is short. Have your samples ready, your data ready, and your ability to iterate quickly ready.
Chinese food going global has moved from the era of "getting products out the door" to the era of "planting brands deep." Cheap alone isn't enough. What it takes now is: can you make that one thing American kitchens are genuinely missing?
