Yihao Classroom
A Brief Analysis of the Chinese Baking Market
Shandong Yihao Food Co., Ltd. specializes in the production of baking oils and fats, puff pastry shortening, specialty oils and fats, and artificial butter. Currently, the baking industry in our country is developing well, and continuous consolidation is occurring throughout the industry during its development.
(Article Reference) In recent years, China's baking food industry has performed well. Factors such as consumption upgrades, policy promotion, standard reconstruction, foreign investment influx, and domestic mergers have accelerated the change from the traditional low-concentration status of China's baking food industry, leading to continuous mergers and acquisitions and accelerated industry integration.
In recent years, China's baking food industry has maintained double-digit growth, far exceeding the average growth rate of the food industry. However, some issues remain in China's baking industry, mainly manifested in:
Overall backwardness in processing technology and equipment. Except for some foreign-funded enterprises, most domestic enterprises still use traditional production technologies. Some new technologies, such as two-stage fermentation processes, two-stage mixing technologies, continuous fermentation processes, high-heat continuous ovens, and self-control equipment, have not yet been widely promoted. While advanced countries have widely adopted fresh dough and frozen dough technologies, although there has been in-depth research in China, large-scale production capacity has not yet been formed.
In terms of business models, the vast majority of China's baking enterprises currently operate with a storefront and factory in the back. Chain operations with central factories are rare. This results in high investment, high production costs, unstable product quality, difficulty in chain operations, and difficulty in creating brand effects. With the improvement of consumption levels, baking foods are developing towards meeting the personalized, fashionable, diversified, and branded chain operation needs of residents. However, most enterprises still use traditional management models, and modern enterprise systems and total quality management have not been fully implemented. With the entry of enterprises from Hong Kong, Taiwan, and developed countries, it is worrying how small storefront-factory businesses in China can withstand the risks and compete with large-scale, high-quality, low-cost, safe, and hygienic chain enterprises supported by foreign consortia.
Due to the relatively low barriers to entry in the baking industry, the educational level of employees is generally low, and technical personnel are mostly on-the-job after short-term training without systematic professional learning. According to experts, employees in China's baking industry only have experience and lack theory, which prevents them from effectively testing the quality of raw materials, stabilizing product quality, and adopting new technologies and processes. With the intensification of industry competition and the continuous emergence of new products and technologies, the talent issue in the baking industry is becoming increasingly prominent.
Whether it's bread, biscuits, or other baked goods, China's per capita consumption is very low. In Europe, Germany consumes the most bread, with per capita consumption as high as 84 kg per year, while Italy's is the lowest at 50 kg. In Asia, Japan, which traditionally relied on rice as its staple food, now consumes over 12 kg of bread per capita. Taiwan's bread consumption also reaches 9 kg, while China's per capita bread consumption is less than 0.7 kg, even lower in underdeveloped areas in central and western China. Moreover, China's baking food enterprises are mainly concentrated in the eastern coastal areas and more developed cities. Based on the experience of other countries, the development of the baking industry shows a positive correlation with economic levels. When per capita income exceeds US\$1000, the baking industry will experience rapid growth. The development of the baking industry in East and South China in recent years has also verified this phenomenon. Baking foods are both convenient staple foods and leisure and festival foods, and are an indispensable part of the food industry. This traditional yet emerging field will become a key area for the development of the food industry, with broad prospects. www.yihaoyouzhi.com To learn more about the baking industry, please stay tuned to this website!
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Shandong Yihao Food Co., Ltd
Telephone:86-531-86933666
Fax:86-531-86937666
Mailbox:yihaoyouzhi@163.com
Website:www.yihaoyouzhi.com
Address: Daqiao Economic Development Zone, Tianqiao District, Jinan City (Yihao Food Industrial Park)