brands. Product categories and distribution channels. Production and supply chains. Economics and forecasting. Comparable data across markets. Experts at analyzing global markets, categories and trends
is the aggregation of bread, cakes, pastries, dessert mixes and frozen baked goods. It includes packaged and unpackaged/ artisanal products for each of these categories. Baked goods from in-store bakeries are classified under unpackaged/artisanal products. Pastries Includes packaged croissants, buns, scones, viennoiserie, brioche, doughnuts, sweet waffles, “crèpes”, and baklava. Also includes fresh and ambient, single and multi-portion pastries that are produced artisanally and typically sold on the site of production (eg bakeries, patisseries). Bread This is the aggregation of flat bread like pita, naan, and tortillas and leavened bread made by adding gas to a dough before or during baking to produce a lighter bread. This includes packaged and unpackaged bread. Cakes This is the aggregation of packaged cakes and unpackaged cakes. Includes multi and single service cakes. Included in cakes are any flavored cakes, cheesecakes, rice cakes, sponge cakes, madeleines, etc. Dessert Mixes Dehydrated/powder/concentrat ed desserts to which hot water or hot (or cold) milk is added, with no other preparation required. Frozen baked goods Morning goods/breakfast items (croissants, rolls, waffles, buns, pastries), pizza crusts, pie crusts, pastry shells, etc. all sold frozen.
these historic gains? Since foreign-funded bakeries began entering China in the 1990s, the Chinese market, traditionally used to “sweet buns”, has continued to become more Westernized. Experimentation with Western-style baked goods Modern grocery growth with in store bakeries
Capita average annual consumption of baked goods. 83% Of total sales fall into sweet baked goods. 45% Of total cake sales are results of the popular gifting tradition among Chinese consumers. $12.4bn $10.8bn $4.9bn $0.4bn Cakes Pastries Bread Dessert Mixes CHINA BAKED GOODS SALES RSP 2017 (USD) New Western favorites including fresh baguettes, croissants and macaroons drive baked goods sales. Which categories account for the largest share?
Sachima brand in China. Hui Tou Ke waffles brings a Western favorite product through a familiar local brand. Kong Weng puff pastries remain a favorite product. Cake – 44% Sachima $725mn Mochi $508mn Donuts $541mn Pastries – 38% Puff Pastries $1,860mn Pineapple Pastries $606mn Tants $519mn Croissants $335mn Bread – 17% Buns $843mn Waffles $768mn Rou Song Bing $465mn CHINA BAKED GOODS SALES RSP 2017 (USD) Despite new Western product availability, local favorites still are extremely popular in Chinese cakes and pastries that can be deep-fried, baked and stewed. What type of products are driving this growth?
over the next five years. restaurants in over 1,100 cities. 10,000 hours. Starbucks is opening a store in China every Hua Lai Shi, a burger franchise, aims to open +2,000 outlets in 100 cities across China. 15 KFC has more than NUMBER OF CHAINED FAST FOOD OULETS IN CHINA 5,000 As Western style fast food outlets move into China, the demand for baked goods continues to grow. What outlets are driving this growth? 2,075 1,754 1,143 3,879 4,596 1,565 4,668 6,193 1,819 Chained Burger Fast Food Chained Coffee Shops Chained Bkaery Product Fast Food 2012 2017 2021
health trends, the baked good markets in China and the US are still growing overall. China is the second-largest baked goods market in the world, with retail sales valued at US$28.5bn in 2017, just behind the US. In 2017 cake sales in China were USD$12.4bn representing 43% of the market whereas bread sales in the US (USD$23.4bn) have the are the largest category in baked goods. BAKED GOODS SALES RSP 2012- 2017 (USD) China is growing at a rate almost double the US baked goods market. China vs. the US historic growth
baked goods market historic CAGR (2012-2017) $81mn Absolute growth of Chinese baked goods market 2012-2017 USD $5.6bn Absolute growth of US baked goods market 2012-2017 USD . CHINA BAKED GOODS SALES RSP 2017 (USD) Despite small market dips in 2015-2016, the Chinese baked goods market has continued to outpace the US market historically. China vs. US historic growth -1% 1% 3% 5% 7% 9% 11% 13% 15% 17% 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Y-O-Y Growth in China and the US Baked Goods Market 2012-2017 China US
Bread is the largest category. Highly fragmented market with lots of competitors. Artisanal brands make up 45% of the market. 39% of baked goods sold in grocery markets, 26% in traditional bakeries. 1,450 commercial bakeries in operation. Cake is the largest category. Highly fragmented market with lots of competitors. Artisanal brands make up 72% of the market. 53% of baked goods are sold in bakeries. Local bakeries offer traditional treats like puff pastries and buns (25% of pastry market sales). 92 holidays where baked goods are given as gifts.
is highly fragmented The top brands account for less than 15% of total retail value share. 4.6% 2.9% 2.1% 1.2% 1.0% 0.8% 0.7% 0.7% 0.6% 0.5% 0.4% 0.3% 2017 Retail Value Share of Baked Goods Artisanal goods mostly sold through bakeries make up 72% of retail sales, with private label making up 4.7% of retail sales in 2017. Most players have a strong regional presence, like Bakery Christine with a high retail sales in Yangtze-river Delta area including Shanghai but has only one store in Beijing.
production lines. Operates in 2 segments: manufacturing and sale of food and beverages. Produces items that are particularly popular in the northeast of China, they offer bread, cakes, pastries, croissants, biscuits and cookies. Dali Food Co. Ltd. Toly Bread Co. Ltd. “Central factory + wholesale” production and distribution mode. Short-term shelf-stable packaged bread products, featured much less preservative and short storage life within one or two weeks to deliver freshness. 15 production bases across various regions of China, ensures its supply of products and maximize its consumer access. Despite being an international company, they have developed new products to suit Chinese consumer’s habits and needs with a closer look on their traditions and eating habits. The company has 3 production bases and 4 headquarters in China and runs over 69 services offices. Its main products include tarts, pies, chocolate cakes and tiramisu. Among these products, the Orion Pie is sold in more than 60 countries and regions, accounting for about 70% of the international chocolate pie market. Orion Group Panpan Foodstuff Co. Ltd. Helping to grow their market share, Panpan continues to introduce new, innovative baked goods. They introduced Panpan Hand Stick, a shredded bread. Featuring high quality ingredients, this product answers consumer demands for healthier and more premium baked goods. It allows for more DIY potential for consumers to pair it with vegetables to make a salad dish, or pair it for a sandwich. Top Five Competitors in China Baked Good Market Snapshots
upon personal relationships developed and maintained at all levels of distribution. Many companies utilize multiple sales channels to overcome the sheer size and cultural diversity of the country. DISTINCT REGION PREFERENCES Regional tastes and styles dictate baked good products, prices and manufacturing. These different types of preferences make production challenging to streamline across regions. Examples include: Cantonese bakeries (Guangdong province), Sichuan bakeries (Sichuan province, Suzhou bakeries (Jiangsu province), Qin bakeries (Shaanxi province), and Jin bakeries (Shanxi province). 23 Labor costs have continued to increase in recent years. While the cost of maintaining service plans is often factored into machinery sales, it is important for exporters to consider this as they determine pricing. Some regions and municipalities have different requirements to provide localized after-sales service, which would require on-site training or local manufacturer representatives to be present. INTELLECTUAL PROPERTY RIGHTS (IPR) While the Chinese government is working to improve IPR protection, it is recommended that US companies establish a clear strategy to handle the challenges of protecting their IPR in a complex legal environment. LABOR COST
more consumers in China become health conscious, trends around ingredients and naturals will continue to impact the market for baked goods. Gut Health: The rise of bread products like sourdough Plant-based foods Natural sweeteners: Like Inulin (prebiotic fiber) as sugar and/or flour replacement
baked good gains will come from cakes. XXXX The average price of pastries in 72% Share of artisanal, non packed baked goods in 2017 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 Y-O-Y Growth BAKED GOODS CATEGORY Y-O-Y GROWTH 2017-2022 Pastries Cakes Bread Dessert Mixes $22bn by 2022 in China. Pastries and cakes in China will continue to grow as premium treats and gift favorite with healthier options expected to boost growth. Which baked goods will drive future growth?
2016 Global Business Development Manager Mainly focus on America and Europe market Intralox China Started in Shanghai 2011 APAC Business Development Analyst Focus on Bakery business in China, Japan, Australia, SEA.
• Employee: +200 from China, US, Japan, Thailand, etc. • Market Coverage：China, Japan, Korea, Australia, New Zealand, South East Asia countries, etc. • Footprint in China: a sales office, a warehouse and an equipment workshop • Sales model: direct 英特乐中国 Intralox China Located in the Yangtze River Delta Area: 2,448 mi² Population: 24M in 2017
2009 “JV” with US company to manufacture conveyor system • 2010 Officially Registered as a ‘WOFE’, separated from JV • 2011 Moved to larger location, increased product offering • 2013 Added 2nd building to extend capacity • 2016 Created additional engineering resource for RBS • 2018 Moving to larger location. Capacity increase 300% Markel Tianjin, China Major Milestones
• 1,500 sq mtr Administration • 1,700 sq mtr Machining Centre Full Machine Shop Capability • Laser, Water Jet, CNC, Welding, etc Full Service and Installation Support • Dedicated team plus use of factory technicians Dough Technologist -Support • Malaysia – Based Markel Tianjin, China – Capabilities Review Full Engineering Team • Dedicated to AMF • Dedicated to RBS Project Management • Complete whole line systems installed. • (Manufacturing independently after 1 week) Sales Office, Beijing • Machine Sales • Customer Service