"China's savoury snacks market has grown strongly thanks to increased consumer spending power, busier lifestyles and increasingly varied leisure pursuits. Consumer interest in new products has fuelled a massive expansion in the number of companies and products involved in the market. But that growth has now created such a bewildering mass of products and brands that all of the products now struggle to stand out from the crowd. Consumers faced with a wall of products come to view all of the products as the same, leading to many sectors becoming viewed as just commodities.
That has left the door open for snack food retail chains and modern grocery chains to develop retail brands and private-label brands that compete successfully where manufacturers' brands have stalled. They provide uniformity of brand image that stands out from the crowd in a way the manufacturers' brands mostly had not, and the manufacturers now face competition from retailers as well as each other, raising the competitive temperature.
Consolidation in the savoury snacks industry is therefore inevitable. We are already seeing leading snacks makers gear up for that consolidation by beginning to innovate in their branding, packaging, marketing and advertising. They are also already showing signs of having identified key consumer groups to target, and adapting their products and strategies to focus on increasing consumer interest among those key groups so as to establish much more sustainable market share in the future." Matthew Crabbe - Asia-Pacific Research Director
This market covers the roasted nuts and seeds, dried/preserved fruit and vegetables snacks, dried/preserved meat and seafood snacks, rice-based puffy snacks, potato-based puffy snacks and other puffy snacks sectors in the People's Republic of China.