China’s edible oil scandal will dent consumer trust

Significance

The scandal -- possibly the country’s largest since the 2008 milk scandal -- has reignited food safety concerns and dented consumers’ confidence in the government at a time of broader discontent over economic issues.

Impacts

• Sales of imported oil and at-home oil presses may rise as consumers avoid domestically produced cooking oil.
• Consumers may cook at home more often to control the type of oil in their food, rather than eating or ordering out, helping grocery sales.
• Cooking oil brands that can guarantee customers complete supply chain visibility and security will likely be popular.