A new report by British-based research agency Canadean has predicted that the Chinese bakery and cereals market will reach US$47bn in four years time.
With only the US market worth more, China will be one of the most attractive bakery and cereals markets worldwide.
Quite different to Europe
With a vast Chinese population, currently estimated at 1.35bn, it is 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 consumer has only 92 occasions per year on which they consume 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. Moreover, Canadean found that the Chinese prefer cakes, pastries and sweet pies, instead of bread and bread rolls, which are more popular in Europe. Cakes, pastries and sweet pies currently account for 43.9% of China’s market share.
Smaller on-the-go packaging
As young migrants are moving from rural to urban areas for better opportunities, rapid urbanisation will expose more Chinese to packaged goods.
Veronika Zhupanova, analyst at Canadean said: “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.”
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.
Zhupanova added: “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.
“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.”