The spotlight turned towards China’s snack industry as the hashtag #the stock price of Three Squirrels has dropped by 80% compared to its peak# (三只松鼠股价较巅峰时跌80%) started trending in the 2nd week of December on Weibo. Once renowned as “the best-performing share of national snacks,” Three Squirrels seems to have lost its prominence with a steady decline in revenue since its 2019 IPO, from 101.7 billion yuan in 2019 to 72.9 billion yuan in 2022. In the past year alone, Three Squirrels closed over 500 physical stores and downsized its workforce by 1,880 employees.
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Bestore’s bold price cut marks shift in China’s snack scene
Three Squirrels is not alone in grappling with challenges in China’s snack industry. Another leading snack brand, Bestore (良品铺子) has also been actively enacting changes to cope with a decreasing demand for high-end snacks amidst the economic downturn following a prolonged pandemic. For the very first time since its foundation 17 years ago, Bestore decided to implement its biggest price reduction, lowering prices of 300 products across different platforms, with reductions of up to 45%.
Consumers flock to affordable and varied snack options
As traditional snack companies seek survival, the landscape of the snack industry in China has been undergoing a huge shift as consumers gravitate towards cheaper and more diverse options. According to iiMedia’s report, the market size of Chinese snack collection stores will be approximately 809 billion in 2023, predicted to increase by 28.4% next year. Busy For You (零食很忙), for example, has opened over 4000 stores nationwide and recently announced a merger with Zhao Yiming, another fast-growing snack collection brand, showing significant market potential.
What to know about the latest development in China’s high-end snacks?
- Three Squirrels, once a leading snack brand, has seen an 80% stock price drop and declining revenue since its 2019 IPO. The company closed over 500 stores and reduced its workforce by 1,880 employees in the past year.
- Bestore, facing a slump in high-end snack demand, implemented its most significant price reduction ever, lowering prices on 300 products by up to 45%.
- China’s snack industry is shifting as traditional companies struggle however, it is not all doom for market players. towards cheaper and more diverse options. According to iiMedia’s report, the market size of Chinese snack collection stores will be approximately 809 billion in 2023, predicted to increase by 28.4% next year. Busy For You (零食很忙), for example, has opened over 4000 stores nationwide and recently announced a merger with Zhao Yiming, another fast-growing snack collection brand, showing significant market potential.
