Biscuits have flooded every corner of Chinese people’s life. Mostly they are regarded as snacks to offer the leisure when people read books or watch movies. Sometimes, they serve as the breakfast in the morning to provide people with the energy for a whole day while in the other situations they also play a role of staple food as the satisfaction of hunger. Recently, some of them are also chosen as a decent gift for friends in the holidays while the LOTUS caramel biscuit with a cup of coffee brings consumers a sentiment of happiness.
There exist plenty of categories of biscuits with different flavors in the Chinese market. It can be classified into savory biscuits and sweet biscuits according to the taste. Flavor-coated (chocolate or strawberry) biscuits, filled biscuits, Wafers, and some other different forms share the market simultaneously. Functional biscuits with less sugar or special advantage for health have a rapid growing market. Though we’ve already numbers of brands and products in such complicated market, we still have a chance to enter the market as it stably grows with rising demand for healthy goods. (See also: Our Sensory Research Methodology)
A stable growing market
The consumer has grown since 2000 and the young people prefer biscuits and bakery products than salty snacks. Biscuits witness 5% total volume growth while retail value sales grow 9% to reach 60.8 billion RMB in 2015. Moreover, the market expects to see 6% constant value CAGR over forecast period though China has declined to slow down its economy growth. Apparently, all these statistics indicates a positive future of huge biscuit market in China. Furthermore, the average unit price of biscuits in China is expected to increase 4% in 2015 due to the dynamic growth of premium biscuits market as customers have rising disposable money and follow the trend to buy premium biscuits as holiday gifts. Accordingly, the market grows at a stable rate over the previous period and will continue to expand both its volume and revenue.
Fierce competition from both inside and outside
Chinese biscuits market has a distinct characteristic which is that the domestic products have more sales volume while foreign ones have more sales value. Domestic products are cheaper and few of them take care about the package, but they have a large mass base in the market, which keeps their sales volume at a stable level. Foreign products pushed in Chinese market strongly with solid investment. They have a higher price and quality as well as more delicate package. Smart distribution strategies accompanied by a premium image of brands also help to increase their sales. Since its first entrance in China, Danisa rapidly becomes one of the most popular choices of gifts in holidays and share 2% in the market. Recently, imported biscuits grow quickly as nowadays people can get access to them easily online without going abroad. In brief, domestic biscuits and foreign biscuits have been competing each other throughout the years while the imported biscuits make it more fiercely.
Wellness is the selling point
A healthy lifestyle has spread widely among Chinese people so that they pay greater attention to what they eat every day. Some people tend to avoid having any biscuits as most of them contain lots of sugar and fat. Thus, the changing concept gives the birth to the functional biscuits which have less sugar and more benefits for people’s health. Several companies made the use of this opportunity to launch so-called healthy biscuits and enjoyed great success in the biscuits market. Hougu biscuits firstly launched by Jiangzhong Pharmaceutical Co. Ltd claims to contain hericiumerinaceus with advertising says that this nourishes the stomach. Therefore, Hougu biscuits are becoming widely accepted. Many consumers buy the biscuits not only for themselves but also for their elders who are not the target customers of biscuits market. Another wheat cracker without sugar launched by Silang Co. Ltd has also gained great popularity as it can help to digest. Surprisingly, diabetics can also eat this kind of biscuit because it has no sugar. It’s even a good choice for people who want to lose weight as it can give a sense of fullness so as to suppress appetite. Everyone will be attracted since this cracker not only brings the enjoyment of food but also the health. So it’s nothing strange when these healthy biscuits firstly appeared, people rushed to buy them. Eying their success, other companies promoted their own healthy biscuits to follow the trend.
However, we still have a lot of developing space under this category of biscuit. For different crowds of people, specific functional healthy biscuits can be developed. For instance, students need nutritional biscuits to grow up. The white collars need biscuits good for their eyes as they use computer every day. The elders prefer the biscuits full of microelement good for bones. Any entrant of the biscuits market in China who can grab the selling point of wellness will sure become the dark horse among biscuits producers.
Entering the Biscuit Market in China: A Taste of Success
When it comes to biscuits, the first question jumps into the mind is that “Is it good or not”? The taste of biscuits is always the most important thing that consumers care. Apart from those functional biscuits, Cranberry Cookies sells best on TAOBAO.COM (In Chinese 淘宝网) with 91017 sales every month for just one shop. The biscuits with milk or chocolate flavors follow as the second best sellers. Crisp biscuits are preferred compared with soft ones. In addition, some special flavors like yogurt, shallot and tomato are also favored by plenty of people. Localization is always important for a company who wants to enter the market. Only knowing clearly about consumers’ taste can lead to great sales of the products.
Chinese biscuits market still has great potential especially for the foreign brands with strength. Although the market is kind of fierce, the stable growth and great developing market of healthy biscuits can still bring the benefits!
— Daxue Consulting (@DaxueConsulting) November 23, 2017