New research from Canadean has found that China will become the second most valuable market for bakery and cereal products by 2018.
The report suggests that the Chinese market for these products could reach $47 billion within a four year period as more urban dwellers choose to consume snacks on the go. With only the US market worth more, China is set to become one of the most attractive bakery and cereals markets worldwide.
According to Canadean, the current per capita consumption of baked goods in China is still relatively low, but the research indicates that there is a lot of room for growth.
At present, the average Chinese consumer only has 92 bakery and cereal occasions per year which is far lower than the European average. Canadean also found that Chinese consumers prefer cakes, pastries and sweet pies, as opposed to bread and bread rolls. Cakes, pastries and sweet pies currently account for 43.9 percent of China’s market share.
“Growing urbanisation will promote the growth of the Chinese middle class, which, in turn, will lead to a demand for a wider range of products,” says Veronika Zhupanova, analyst at Canadean.
“Manufacturers should take advantage of this trend and produce bakery and cereals items that serve as an energy boost for busy Chinese who skipped breakfast or need a snack break at work. Single-serve packed items, such as Tao Li's red bean paste Dorayaki, will sell particularly well during office hours, whereas multipacks of ambient and individually packed items will be suitable for tired consumers who are looking for a treat after a long day of work.”