Baked goods are convenience foods made from flour and yeast as the basic raw materials, with the addition of salt, sugar, fat, dairy, eggs, water and additives, etc., baked through a series of complex process means. The main types include bread, cakes, cookies and other bakery products. Among them, bread and cakes, as the most common ingredient categories, accounted for 61% of all category sales of baked goods.

Industry scale is developing rapidly, reaching 194.5 billion yuan in 2017

In recent years, consumption upgrading, accelerated urban pace, coupled with the rise of young consumers, who are greatly influenced by Western eating habits, China's bakery industry has been able to develop rapidly.2012-2017, the bakery industry has entered a period of rapid growth, with the annual average The compound annual growth rate reached 12.67%.At the end of 2017, the market size of the industry reached 194.5 billion yuan, an increase of 14.41% year-on-year. Forward-looking forecasts predict that the market size of the baking industry will further expand in 2018, reaching a level of about 206.5 billion yuan.

Low per capita consumption, large room for future improvement

At the same time, per capita consumption of products continues to grow. Data show that per capita consumption of bakery products in China rose from 3.69 kilograms per person in 2007 to 6.92 kilograms per person in 2017, an increase of nearly two times in 10 years.

However, when compared horizontally with developed countries, China's per capita consumption of bakery products is still at a low level. According to the data, the United Kingdom and the United States per capita consumption of baked goods were 48.2 kilograms per person and 40.2 kilograms per person, respectively, 6 times and 7 times our country. Even in Japan, which is also an Asian region (with a more similar food culture), the per capita consumption of baked goods is 22.5 kilograms/person, which is 3.25 times that of our country. It can be seen that China's per capita consumption of baked goods and other major baking countries there is still a large gap, the future to enhance the space is larger.

Low market concentration, the competition pattern is relatively decentralized

While the industry has begun to take shape, but the development time is relatively short, China's bakery food market concentration is still low. Data show that the current CR5 of China's bakery industry is only 10.4%, compared to Japan's bakery industry CR5 reached 88%, a large gap.

The top 5 companies in the industry, including Dali, Holliday, Tao Li, Hsu Fu Chi and Pan Pan, accounted for only 5.1%, 2.2%, 1.9%, 1.1%, 1.1% and 1% of the market share, respectively. In comparison, Yamazaki Bread, which ranks first in Japan's bakery sector in terms of market share, accounts for 36% of sales, while Nissin Foods and Nissin Flour, which rank second and third in terms of market share, account for 18% and 13% of sales, respectively. Therefore, although China's baking industry is taking shape and growing rapidly, its industry concentration has yet to be improved.

The concentration of leading companies is low, while the competition among small and medium-sized enterprises (SMEs) is fragmented. Currently, the most important bakery enterprises in China's bakery market are small individual vendors, occupying 75% of the market share. According to the National Bureau of Statistics data, by the end of 2017, China's bakery food manufacturing enterprises above designated size **** there are 1,560, however, subject to brand, capital and other factors, individual traders are difficult to form a unified brand, so far there is no enterprise to form an absolute market advantage, the overall view of the bakery industry, the competitive landscape is relatively decentralized.

For more information, please refer to the Brand Competition and Consumption Demand Investment Forecast Analysis Report released by the Foresight Industry Research Institute.