"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
In this report we answer the key questions:
Who the key consumer groups for savoury snacks are and how their differing
lifestyles shape their demand for savoury snacks?
How the industry needs to face imminent and inevitable consolidation with
creative branding and marketing to engage better with the key consumer groups.
What the threat from snack food retail chains and modern grocery chain
private label is doing to the competitive landscape in the savoury snacks
market.
Whether the snacks industry is meeting the health demands of Chinese
people in light of increased worries among consumers about food safety,
obesity and nutrition
Are manufacturers beginning to understand how premiumisation could raise
their profile and appeal amongst consumers, and help them to survive the
oncoming period of consolidation?
Definition
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.
Table of Contents
Table of Contents
INTRODUCTION
Definition
EXECUTIVE SUMMARY
THE MARKET
THE FORECAST
Figure 1: Forecast - Volume sales of snack foods in China, 2006-16
Figure 2: Forecast - Value sales of snack foods in China, 2006-16
COMPANIES
Figure 3: Forecast - Value sales of snack foods in China, 2011
ISSUES
High fragmentation hinders market differentiation
Figure 4: Repertoire of brands of potato chips every bought in the last
3 months, December 2011
Changing lifestyles create more snacking opportunities
Figure 5: Location of eating savoury snacks, December 2011
Potential snacking Super-brands begin to emerge
Figure 6: Brands of potato chips ever bought in the last 3 months,
December 2011
Building snack brands on a health proposition
Figure 7: Top 10 health claims by new product launches, 2009-11
Premium products begin to rise above the throng
Figure 8: Attitudes to bulk and discount buying of savoury snacks,
December 2011
THE MARKET: A SNAPSHOT
The slowing of rapid snacks market growth means significant, imminent
consolidation
Figure 9: China - Savoury snacks: Market volume and value annual growth,
by sector, 2007-11
Figure 10: China - Savoury snacks: Market volume and value, by sector,
2007-11
The leading companies
Figure 11: Total savoury snacks market shares, 2009-11
Figure 12: China: Leading potato snack company total market shares,
2009-11
China's snacking target consumer groups
Figure 13: The key target savoury snacks consumer groups, December 2011
Figure 14: The key target savoury snacks consumer groups' snacking
attitudes, December 2011
FRAGMENTATION HINDERS MARKET DEVELOPMENT
Key issues
Snack products proliferate without a clear strategy
Figure 15: % Breakdown of new products surveyed, by type, 2007-11
Figure 16: Brands of potato chips bought in the last 3 months, December
2011
Figure 17: Repertoire of brands of potato chips bought in the last 3
months, December 2011
Figure 18: Percentage points growth/decline in significance within new
product launches, 2007-11
Figure 19: % breakdown of savoury snacks volume & value sectors and
percentage point growth/decline, 2007-11
Figure 20: Period sector value & volume growth rates, 2007-11
Fragmentation hinders brand loyalty
Figure 21: Key snack markets value growth compared with savoury snacks,
2007-11
Figure 22: Snack product launches, by type of launch, 2008-11
Figure 23: Snacks annual % growth rates, by sector, 2007-11
Case study: Laiyifen and commodity snack retailing
What does it mean?
CHANGING LIFESTYLES CREATE MORE SNACKING OPPORTUNITIES
Key issues
The snacks market gears up for a change in consumer habits
Figure 24: Total savoury snacks market value & volume and annual growth,
2007-11
Breaking with traditional snacking habits
Figure 25: Frequency of snack consumption, by consumer groups, December
2011
On-the-go snacking still in its infancy
Figure 26: Location of eating savoury snacks, December 2011
Figure 27: Frequency of eating savoury snacks, by income group, December
2011
Functional benefits appeal to women
Figure 28: % of new product launches with product claims targeting
women, 2007-11
Making snacking manly
Snacks for children
Figure 29: % of new product launches with product claims targeting
children, 2007-11
Snacks to suit every lifestyle
Figure 30: New savoury snacks product launches based on usability
claims, 2007-11
What does it mean?
SNACKING SUPER-BRANDS BEGIN TO EMERGE
Key issues
Brand share development has huge potential for growth
Figure 31: Total savoury snacks market shares, 2009-11
Figure 32: Total nuts and seeds snacks sector shares, 2009-11
Figure 33: China leading potato snack company total market shares,
2009-11
Case study: Qia Qia revamping its tired brand
Making packaging stand out from the crowd
Case study: advertising the new message - follow the PepsiCo lead
Figure 34: Brands of potato chips bought in the last 3 months, December
2011
Figure 35: Repertoire of brands of potato chips bought in the last 3
months, December 2011
Tingyi/Calbee New JV Set to Make a Significant Snacks Market Entry
Private label: the emerging challenge to brand shares
Figure 36: Retail formats where savoury snacks have been bought in the
last 3 months, December 2011
Figure 37: China top 100 retailers' forecast sales and private-label
sales compared, 2010-14
Figure 38: Private-label % of new snack product launches, 2009-11
Figure 39: Top 20 companies based on new product launches, 2009-11
In-store promotions remains key area
Deepening brand penetration through new channels
What does it mean?
BUILDING SNACK BRANDS ON A HEALTH PROPOSITION
Key issues
Snack consumers really do care about health as an issue
Figure 40: Consumer attitudes to healthy snacking, December 2011
Figure 41: Attitudes towards savoury snacks consumption, December 2011
What are considered healthy snacks
Healthy and ethical products - recent development
Figure 42: Top ten health claims, by new product launches, 2009-11
Figure 43: Attitudes towards snacks consumption, December 2011
Figure 44: % of total new product launches making health claims, 2011
Figure 45: % of total new product launches making ethical claims, 2009-11
The profound effect of food scares
GMO-free
No additives
Marketing health to snackers
Figure 46: Savoury snacks consumption frequency survey results, December
2011
Figure 47: Average unit price per kg for savoury snacks, by sector,
2007-11
Figure 48: Attitudes towards bulk and discount buying of savoury snacks,
December 2011
Figure 49: Average savoury snacks product prices, by sector, 2008-11
A miscellany of premium features
Premiumisation through packaging
Special-occasion gift packs
What does it mean?
FUTURE OF THE SAVOURY SNACKS MARKET IN CHINA
The market will slow but remain strong
Figure 50: China - Forecast volume market for snacks, 2006-16
Figure 51: China - Forecast value market for snacks, 2006-16
The industry will continue to consolidate
Consumers will respond to more targeted marketing
APPENDIX - CONSUMER - CONSUMPTION HABITS
Figure 52: Frequency of eating savoury snacks, December 2011
Figure 53: Frequency of eating savoury snacks, December 2011
Figure 54: Location of eating savoury snacks, December 2011
Figure 55: Location of eating savoury snacks, by demographics, December
2011
Figure 56: Time of day savoury snacks are typically eaten, by
demographics, December 2011
Figure 57: Time of day savoury snacks are typically eaten, December 2011
Figure 58: Frequency of eating savoury snacks, by time of day savoury
snacks are typically eaten, December 2011
Figure 59: Most popular frequency of eating any savoury snacks, by
demographics, December 2011
Figure 60: Next most popular frequency of eating any savoury snacks, by
demographics, December 2011
Figure 61: Most popular frequency of eating nuts, by demographics,
December 2011
Figure 62: Next most popular frequency of eating nuts, by demographics,
December 2011
Figure 63: Most popular frequency of eating seeds, by demographics,
December 2011
Figure 64: Next most popular frequency of eating seeds, by demographics,
December 2011
Figure 65: Most popular frequency of eating preserved fruits, by
demographics, December 2011
Figure 66: Next most popular frequency of eating preserved fruits, by
demographics, December 2011
Figure 67: Most popular frequency of eating meat snacks, by demographics,
December 2011
Figure 68: Next most popular frequency of eating meat snacks, by
demographics, December 2011
Figure 69: Most popular frequency of eating dried fish/seafood snack, by
demographics, December 2011
Figure 70: Next most popular frequency of eating dried fish/seafood snack,
by demographics, December 2011
Figure 71: Most popular frequency of eating potato chips, by demographics,
December 2011
Figure 72: Next most popular frequency of eating potato chips, by
demographics, December 2011
Figure 73: Most popular frequency of eating rice-based snacks, by
demographics, December 2011
Figure 74: Next most popular frequency of eating rice-based snacks, by
demographics, December 2011
Figure 75: Most popular frequency of eating other puffed foods, by
demographics, December 2011
Figure 76: Next most popular frequency of eating other puffed foods, by
demographics, December 2011
APPENDIX - CONSUMER - PURCHASING HABITS
Figure 77: Source of buying savoury snacks, December 2011
Figure 78: Most popular source of buying savoury snacks, by demographics,
December 2011
Figure 79: Next most popular source of buying savoury snacks, by
demographics, December 2011
Figure 80: Average weekly spending on savoury snack, December 2011
Figure 81: Brands of potato chips ever bought in the last 3 months,
December 2011
Figure 82: Brands of potato chips ever bought in the last 3 months, by
most popular frequency of potato chips, December 2011
Figure 83: Brands of potato chips ever bought in the last 3 months, by
next most popular frequency of potato chips, December 2011
Figure 84: Brands of potato chips bought most often, December 2011
Figure 85: Brands of potato chips bought most often, by most popular
brands of potato chips bought second most often, December 2011
Figure 86: Brands of potato chips bought most often, by next most popular
brands of potato chips bought second most often, December 2011
Figure 87: Most popular brands of potato chips ever bought in the last 3
months, by demographics, December 2011
Figure 88: Next most popular brands of potato chips ever bought in the
last 3 months, by demographics, December 2011
Figure 89: Most popular brands of potato chips bought most often, by
demographics, December 2011
Figure 90: Next most popular brands of potato chips bought most often, by
demographics, December 2011
APPENDIX - CONSUMER - ATTITUDES
Figure 91: Attitudes towards savoury snacks consumption, December 2011
Figure 92: Most popular attitudes towards savoury snacks consumption, by
demographics, December 2011
Figure 93: Next most popular attitudes towards savoury snacks consumption,
by demographics, December2011
Figure 94: Agreement with the statements 'I try to avoid snacks with
artificial ingredients' and 'I try to limit the amount of savoury snacks I
eat', by demographics, December 2011
Figure 95: Agreement with the statements 'I eat them as a meal
replacement' and 'I tend to buy in bulk to save money', by demographics,
December 2011
Figure 96: Agreement with the statements 'I trust Chinese branded snacks
more than foreign brands' and 'I tend to buy what's on special offer', by
demographics, December 2011
Figure 97: Agreement with the statements 'I prefer fried over non-fried
snacks' and 'I tend to avoid MSG when buying snacks', by demographics,
December 2011
APPENDIX - REPERTOIRE ANALYSIS
Figure 98: Repertoire of brands of potato chips every bought in the last 3
months, December 2011
Figure 99: Repertoire of brand preference, by demographics, December 2011
APPENDIX - CLUSTER ANALYSIS
Figure 100: Target groups, December 2011
Figure 101: Target groups, by demographics, December 2011
Figure 102: Fequency of eating savoury snacks, by target groups, December
2011
Figure 103: Location of eating savoury snacks, by target groups, December
2011
Figure 104: Time of day savoury snacks are typically eaten, by target
groups, December 2011
Figure 105: Source of buying savoury snacks, by target groups, December
2011
Figure 106: Brands of potato chips ever bought in the last 3 months, by
target groups, December 2011
Figure 107: Attitudes towards savoury snacks consumption, by target
groups, December 2011
APPENDIX - MARKET DATA
Figure 108: Value sales of snack foods in China, 2011 Attitudes towards
savoury snacks consumption, by target groups, December 2011
Figure 109: Market size, value 2007-11
Figure 110: Snack market size, Volume 2007-11
Figure 111:
Figure 112: Snack Market share by %, 2009-11
APPENDIX - NEW PRODUCT LAUNCHES
Figure 113: Proportion of new product launches by snack category, 2006-11
Figure 114: Top 10 health claims by new product launches, 2009-11
Figure 115: New product launch type, 2006-11
Figure 116: % of 'healthy ingredient' new product launches, 2006-11
Figure 117: New product launch claims, 2006-11
Figure 118: New product launches, by company, 2009-11
Snacks in China published by Mintel in May 13, 2012. This report price starts from US $ 3990.
