FNB News - Report on bakery in China highlights trends in use of packaging materials

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Report on bakery in China highlights trends in use of packaging materials

Wednesday, 11 January, 2017, 08 : 00 AM [IST]

The contents of Ken Research’s research report, titledConsumer and Market Insights: Bakery and Cereals in China, included insights on high-growth categories to target, trends in the usage of packaging materials, types and closures category level distribution data and brands’ market shares.

It identified the key demographic groups driving consumption, and what motivates their consumption, combined with an in-depth study of the market and category dynamics, to identify key opportunities, and how to target them.

The report included the following:

Overall market value and volume data with growth analysis for the period between 2010 and 2020
Value and growth analysis for baking mixes, baking ingredients, bread and rolls, breakfast cereals, cakes, pastries and other bakery products with inputs on individual segment shares within each category and the changes in their market shares forecast for the period between 2015 and 2020
Reviews and recommendations on how the market will shape up between 2015 and 2020
International and China-specific product innovation examples targeting key consumer needs and relevant data about the leading players

It helps to identify high-potential categories and explore further market opportunities based on detailed value and volume analysis and places a significant emphasis on changes expected in the market that will provide a clear picture of the opportunities that can be tapped over the next five years, resulting in revenue expansion.

It helps in gaining an understanding of the total competitive landscape based on detailed brand share analysis to plan market positioning effectively.

It even showcases the number of times consumers of different age groups and gender consume bakery products and cereals, as well as identifies whether these demographic groups over-consume and basically how the consumer behaviour in the market is influenced.

Economic outlook
The bakery and cereal market in China is rapidly developing, driven by the sheer scale of the economy. Low per-capita consumption presents opportunities for the two sectors aligned with primary consumption motivators. Rapid urbanisation and increasingly busy lifestyles are expected to drive the demand for products suitable for on-the-go consumption.
The Chinese bakery and cereal market is one of the fastest-growing by volume and is expected to grow at a compounded annual growth rate (CAGR) of 10.3 per cent in value terms between 2015 and 2020. Cakes, pastries and sweet pies are the most consumed bakery products in China.

Soy Joy is the leading brand in the cereal bar category, both in value and volume terms. Bakery and cereals in China are expected to register the fastest growth in value and volume terms during the years to come, whereasthe brownie mix segment is expected to gain maximum share growth within the baking mix category.

Flexible packaging is the most commonly-used packaging material in the bakery and cereal market in China and the packaged/industrial bread and roll segment is expected to gain share growth within the bread and roll category.

China’s bakery and cereal market is driven by consumers’ desire for quality and convenience, and this aspect is accordingly maintained by the market in order to gain revenue and function optimally.

The key factors discussed in the report included the following: