-How is the snack industry in China in terms of value, volume/scale, growth rate?
According to Chinairn.com, the sales of snack industry in China are more than ¥200 billion in 2011 and it is growing with 15% growth rate. It is forecasted increasing to ¥480 billion in 2018.In the recent 5 years, the average growth rate of importing snack markets is remains15%, and the main consumer group is from age 18-25 female consumers.
-Is there any visible trend? What are the reasons behind that? What drive the growth?
Based on the research from Standard Chartered 2014, the growth rate of sweets and chocolates declined to 10% in the first 10 years in China. The same situation happen to the instant noodles, despite the growth rate of instant noodles was nearly 20% in 2014. In terms of fruit juice and soft drinks, the growth rate is decrease almost half when comparing with last three years. However, the growth rate of bottled water remains increasing with 16% every year.The main reason for that is mainly because of the slow economic growth in China. In addition, Chinese consumers have stronger health consciousness than before.
A research carried by Chinese Snack Association aims to the age range below 40, found out that there are 88.5% interviewees said snacks are nonnutritive, especially those snacks with Saturated fats and sweets. Therefore, the development of snack industry in the future should made of low-energy, low-fat, low-sugar materials, to provide consumers more healthy and nutrition foods.
-What kinds of snacks are more popular and who would buy more snacks?
The research from Chinese Snack Association also shows 41.6%, 40.4% and 26.7% interviewees choose chocolates, sweets and potato chips as their favorite snacks respectively.
The young people from 22-35 are the main consumer group for snacks, especially the females. The teenager and children are also the main consumers for snacks.
-Will imported products/multinational brands more popular in China?
According to the development trend of Chinese Snacks Industry in 2013, the multinational brands take the complete advantage in China snack industry. The top 10 snack brands are: Want-want, Kraft Foods, LIWAYWAY, DANONE, Wm Wrigley Jr Company, Dove, ORION, Xufuji and Jiashili. Among these brands, Wang-want and Xufuji are the Taiwanese company, which accounted 20% market share. Kraft Foods, LIWAYWAY, DANONE, Wm Wrigley Jr Company, Dove, ORION are occupy 50% in Chinese market. Xufuji and Jiashili are domestic brands, only accounted for 20%.
However, some domestic brands have the potential to increase their market share in the future. For example, Le Conte, Dali and Qinqin. As these brands know the needs of Chinese consumers better than foreign brands, for example, the Chinese snacks manufactures produce some snacks that foreign brands do not produce, like pot roast foods.
- What's the position of China in Asia in this industry?
Investigation conducted by Nielsen shows the sales of frozen snacks take up the one third of total snacks sales on Asia-Pacific area, which are $13.7 billion. The most popular snacks in Asia-Pacific area is chocolate(69%), cookies/biscuits(55%), nuts/seeds(49%), yogurts,(48%) chips/crisps(43%), gum(38%).
In 2013, the growth rate of exports and imports of Chinese snacks increased about 8%, Brazil,ASEAN (Association of Southeast Asian Nations) and America are the three biggest foods trade partner.