With only the US market worth more, China will be one of the most attractive bakery and cereals markets worldwide.
With the vast Chinese population, currently estimated at 1.35bn, it’s no surprise that China is such a huge market for bakery and cereals. However, the per capita consumption is still low and indicates room for further growth.
According to Canadean, the average Chinese only has 92 bakery and cereals occasions per year, which is far lower than in Europe. The average German, for example, has 731 bakery and cereals occasions a year.
Canadean further found that the Chinese prefer cakes, pastries and sweet pies instead of bread and bread rolls (which are popular in Europe). Cakes, pastries and sweet pies currently account for 43.9% of China’s market share.
As young migrants move from rural to urban areas for better opportunities, rapid urbanisation will expose more Chinese to packaged goods.
“Growing urbanisation will promote the growth of the Chinese middle class, which in turn will lead to a demand for a wider range of products,” said analyst Veronika Zhupanova.
Canadean’s report found that the busy lifestyles of these new urban dwellers will push them to search for convenient and tasty products on-the-go.
“Manufacturers should take advantage of this trend and produce bakery and cereals items that serve as an energy boost for busy Chinese who skipped breakfast, or need a snack break at work,” said Zhupanova. “Single-serve packed items such as Tao Li’s red bean paste Dorayaki will sell particularly well during office hours, whereas multipacks of ambient and individually packed items will be suitable for tired consumers who are looking for a treat after a long day of work.”
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