China set to be second most valuable bakery and cereals market by 2018
The Chinese bakery and cereals market – already the largest in volume – is set to become the second most valuable by 2018, as more urban dwellers consume pick-me-up snacks on-the-go, according to new findings from global market research organisation Canadean.
The Chinese bakery and cereals market is not only the largest in volume, but is also set to become the second most valuable, expected to reach $47 billion by 2018. With only the US market worth more, China will be one of the most attractive bakery and cereals markets worldwide, according to Canadean.
Room for growth in Chinese market
With the vast Chinese population, currently estimated at 1.35 billion, Canadean said it was no surprise that China was 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 per cent of China’s market share.
Smaller on-the-go packaging will be in demand
As young migrants are moving 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 Veronika Zhupanova, analyst at Canadean.
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,” Ms Zhupanova said. “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,” she said.