The China Cakes, Pastries, and Sweet Pies Market is expected to grow at a CAGR of 9.2% over the forecast period, 2020-2025.
- The market is mainly driven by changing lifestyles and increased consumer taste for premium baked goods. Pastries & Sweet Pies is the largest segment, which is growing at a faster rate.
- On the other hand, Large industrial manufacturers, high-end or large bakery chains, retail outlets, and luxury hotels have incorporated their stronghold in making fancy baked products to satisfy the demand for high quality mostly from the middle to high-income urban families and well educated young generation, thereby, increasing the competition for international players.
Key Market Trends
Expanding Distribution Channel, Driving Sales
Rising expansion in the number of bakeries, convenience stores, supermarkets, and hypermarkets are accelerating market growth. Artesian retail pastries are pushing their packaged cakes sales for wider distribution in tier II cities and tier III cities for expansion. Product and packaging innovation available in different flavors, offered by artesian bakers is continuing to drive pastries consumption. Many large players are shifting their distribution from modern grocery retails to traditional retail channels in rural and tier-II cities to cater to consumer demand.
Growing Preference for Packaged Baked Good Products
The market size of the baking industry in China has been growing considerably fast in recent years, with more than a 10% YOY growth rate. Increased prevalence of western lifestyle and rising income has triggered the baked goods sale in the region. China is expected to be the largest market for cakes and pastries globally during the forecasted period.
Despite the demand for the functional bakery, which is dominant in developed countries, the Chinese prefers to buy novel products, that have a mix of ingredients and encompass different flavors. Cakes, pastries and sweet pies hold a significant share of China's total bakery and cereal market. Furthermore, the combination of a high young population demanding western-style baked goods and convenience are some of the underlying factors driving the market growth.
The market for China Cakes, Pastries, and Sweet Pies is highly fragmented and competitive. Foodservice channel offering customized baked goods offering tough competition to the retail companies. Companies focusing on new product launches with healthier ingredients/organic claims as their key marketing strategy. Increased private label brands are possessing tough competition to the existing players.
Major players operating in the segment are Fujian Dali Food Co Ltd, Paris Baguette, Nestlé SA Grupo Bimbo, Yamazaki Baking Co. amongst others.
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