Table of Contents
Executive Summary
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- The market
- Total spending on snacking enjoys a stable growth
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- Figure 1: Best- and worst- case forecast of retail sales of major snack categories, China 2013-23
- Though nuts are winning, traditional snacking categories are starting to recover
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- Figure 2: Retail sales value of major snack categories, China, 2013-18
- Companies and brands
- Domestic brands are strengthening their own competitiveness
- International giants are expanding their better-for-you portfolios
- Provide natural and surprising snacks for Chinese consumers
- The consumer
- Snacking more, for different purposes
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- Figure 3: Consumption trends of different types of snacks, China, October 2018
- Offline and online channels are equally important, and brands need to make full use of each channel based on its characteristics
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- Figure 4: Purchase channel of snacks, China, October 2018
- Hungering for more premium and better-for-you snack products
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- Figure 5: Trading up potential, China, October 2018
- Innovative concepts and creation of sub-culture to engage the post-00s
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- Figure 6: Interest in super sale snacks-Selected attributes, by generation, China, October 2018
- To some extent, happy or guilty depends on what is eaten
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- Figure 7: Snacking attitudes and habits, by types of snacks eating more of compared with six months ago, China, October 2018
- What we think
Issues and Insights
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- Make full use of the potential and possibility of convenience stores
- The facts
- The implications
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- Figure 8: Private label snacks of 7-11 and Family mart, Japan
- Tailor product features to satisfy post-00’s demands for personality
- The facts
- The implications
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- Figure 9: Product examples of snacks which provide unique consumption experience, Japan and USA, 2018
- Figure 10: Kraft’s funny characters of different biscuit flavours, China, 2018
- Motivate high earners with healthy meal-like snacks
- The facts
- The implication
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- Figure 11: Ready Egg Go! (egg snack kits) of Crystal Farms, USA, 2018
The Market – What You Need to Know
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- Total spending on snacking in 2018 has exceeded RMB 819 billion
- Traditional snacking categories show signs of recovering
- Premiumisation and socialisation have changed consumers’ attitudes towards snacking
Market Size and Forecast
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- Snack spending grows stably
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- Figure 12: Snack spending, China, 2013-18
- The total market value of snacks is estimated to reach RMB 1,050 billion in 2023
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- Figure 13: Best- and worst- case forecast of retail sales of major snack categories, China 2013-23
Market Factors
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- Premiumisation and socialisation are driving the recovery of less healthy snacks
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- Figure 14: Product and marketing innovation of Oreo highlighting pleasure and indulgence, China, 2018
- Figure 15: Product example of chips highlighting singleton culture, China, 2018
- Further customer segmentation: design for specific groups
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- Figure 16: Product example of daily nuts highlighting on different nutrition for pregnant women, China, 2018
- New retail accelerates the integration of online and offline channels
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- Figure 17: Products of “internet brands” sold in Jing Dong convenience store, China, 2018
- National salt reduction guide on food industry
Market Segmentation
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- Snack nut is still the largest segment
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- Figure 18: Snack segment, China, 2018
- Traditional snacking categories experience a recovery
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- Figure 19: Retail sales value of major snack categories, China, 2013-18
- Figure 20: Top 10 chocolate brands by sales value on e-commerce, China, 2017-18
Key Players – What You Need to Know
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- Domestic e-commerce brands are embracing new retail
- International brands are focusing on better-for-you snacks
- Innovation trend: more naturalness and more surprises
Competitive Strategies
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- Going for better-for-you snacks
- PepsiCo extends its better-for-you product lines
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- Figure 21: Lucky almonds sold in gift pack at PepsiCo’s Tmall flagship store, China, 2018
- Figure 22: Product examples of Bare Foods, US, 2018
- Mars, along with other major chocolate and sugar confectionery giants are focusing on calorie reduction
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- Figure 23: M&M’s low-calorie product with a calorie label in the front of the pack, US, 2018
- Use technology to provide better product experience
- Be & Cheery obtains the patent of dry and wet separation technology (干湿分离包装技术)
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- Figure 24: Be & Cheery’s “lock freshness”, China, 2018
- Empower with consumer data
- Bestore launches intelligent shopping guide system
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- Figure 25: Consumer using coupon pushed by the “Intelligent Shopping Guide” in offline store of Bestore, China, 2018
- Three Squirrels reinforces the management on supply chain
Who’s Innovating?
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- Innovation trend overview
- Sweet snacks are more active while salty snacks still dominate
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- Figure 26: New products launched in China, by category, 2016-18
- Figure 27: New snack products launched in China, by sub-category, 2016-18
- Both “minus” and “plus” claims are growing
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- Figure 28: Growing claims on the new products launched in China, by category, 2016-18
- The evolving plant “bases”
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- Figure 29: Product examples of vegetable-based crisps, China, 2018
- Figure 30: Product examples of better-for-you chocolates, 2017-18
- Short-shelf-life snacks
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- Figure 31: Product examples of Three Squirrels’ short-shelf-life snacks, China, 2018
- Figure 32: Product examples of fresh snacks, 2017-18
- Combining sweet with salty and with spicy to surprise consumers
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- Figure 33: Product examples of combination of sweet and salty flavours, 2018
- Figure 34: Product examples of combination of sweet and spicy flavours, 2017-18
The Consumer– What You Need to Know
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- Opportunity for freshly-made snacks
- Offline and online channels are equally important, but should be more consumer specific
- Use creative concepts beyond product to engage the post-00s
- Consumers are self-conscious when eating snacks
Consumption Trends of Different Snacks
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- Fruits and vegetables are welcomed by all age groups
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- Figure 35: Consumption trends of different types of snacks, China, October 2018
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- Figure 36: Consumption trends of different types of snacks-Eating more, by age, China, October 2018
- Opportunity for meat/seafood-based snacks
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- Figure 37: Consumption trends of different types of snacks – Eating more, China, 2018 vs 2016
- Males are eating more snacks than two years ago
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- Figure 38: Gaps of gender in consumption trends of different types of snacks – Eating more, China, 2018 vs 2016
Purchase Channels
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- Consumers are using multiple channels to purchase snacks
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- Figure 39: Purchase channel of snacks, China, October 2018
- City tier influences channel preferences
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- Figure 40: Purchase channel of snacks-Repertoire analysis, by city tier, China, October 2018
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- Figure 41: Selected purchase channel of snacks, by city tier, China, October 2018
- Utilise convenience or grocery stores to reach young and busy consumers
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- Figure 42: Purchase channel of snacks-Convenience stores or grocery stores, by age, China, October 2018
- Figure 43: Selected purchase channels of snacks, by personal monthly income, China, October 2018
Trading Up Potential
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- Multiple categories have potential for trading up
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- Figure 44: Trading up potential, China, October 2018
- Personal income and city tier matter in trading up preferences
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- Figure 45: Gaps in trading up potential of different snacks between high- and low income consumers, China, October 2018
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- Figure 46: Trading up potential of selected snacks, by city tier, China, October 2018
Better-for-you Snacking Concepts
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- “Healthy” is more about eliminating undesired elements
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- Figure 47: Better-for-you snacking concepts, October 2018
- Freshly-made becomes crucial, especially among females
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- Figure 48: Better-for-you snacking concepts-Freshly made, by gender, China, October 2018
- Forge a healthy snack cost-effectively
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- Figure 49: TURF analysis of factors related to better-for-you snacks, China, October 2018
Interest in Super Sale Snacks
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- Texture is the hook to attract interest
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- Figure 50: Interest in super sale snacks, China, October 2018
- Use creative concepts beyond product to engage the post-00s
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- Figure 51: Interest in super sale snacks-Selected attributes, by generation, China, October 2018
- Exotic flavour most critical in Guangzhou
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- Figure 52: Interest in super sale snacks-Selected attributes, by city, China, October 2018
Snacking Attitudes and Habits
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- Consumers are self-conscious when snacking
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- Figure 53: Snacking attitudes and habits, by types of snacks eating more compared with six months ago, China, October 2018
- Create super-sale-snacks in tier 2 or lower cities
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- Figure 54: Snacking attitudes and habits, by selected attributes of super sale snacks, China, October 2018
- Opportunity for snack delivery services
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- Figure 55: Snacking attitudes and habits –“When I fancy snacking, I prefer ordering from food delivery”, by habit towards whether eat snacks as main meals, China, October 2018
Meet the Mintropolitans
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- Eating more snacks than others
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- Figure 56: Consumption trend of different types of snacks-Eating more, by consumer classification, China, October 2018
- Willing to pay more for indulgence
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- Figure 57: Trading up potential, by consumer classification, China, October 2018
- Follow the trend and love snack-specialized channels
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- Figure 58: Purchase channel of snacks, by consumer classification, China, October 2018
Appendix – Market Size and Forecast
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- Figure 59: Total market value of snacking, China, 2013-23
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Appendix – Market Segmentation
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- Figure 60: Retail sales value of major snack categories, China, 2013-18
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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