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2022
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10
Sales in the domestic pastry and bakery industry showed an initial upward trend before gradually slowing down.
Author:
For the first time in nearly two years, profit growth in the pastry and bakery sector has begun to decline. To address these challenges, this year’s Mooncake Culture Festival will highlight locally inspired mooncakes featuring innovative fillings, aiming to revitalize the broader pastry and bakery market. From 2003 to 2016, over a 14-year period, the pastry and bakery industry experienced remarkable growth: starting from a low profit base in 2003, sales surged by an average of 28.6% annually, while profits soared by an impressive 45% each year. As a result, total industry profits increased nearly 140-fold over the decade. However, in recent years, profit growth has started to slow down. In 2017, profit growth dipped into single-digit territory for the first time, reaching just 3.84%. This contrasts sharply with the robust 26% growth rate seen in 2016. Even more concerning, during the first half of 2018, profit growth further decelerated to a mere 5.35%. Overall, the outlook for the pastry and bakery industry over the past two years remains decidedly less optimistic.
In response to these shifts in the pastry market, established domestic catering brands have upgraded their pastry offerings. As the upcoming Mid-Autumn Festival approaches—a peak season for mooncake consumption—many time-honored culinary companies are incorporating regional specialties into their mooncake creations. For instance, Quanjude (13.300, -0.02, -0.15%) has introduced its signature Scallion-Scented Duck Meat Mooncakes, while Daoxiangcun is showcasing its classic Beijing-style Tijiang Mooncakes. Meanwhile, Beijing’s Ershang Gongyifu brand has unveiled its latest line of exquisite Imperial Beijing-style mooncakes this year. Meanwhile, reporters have learned that, to appeal to younger consumers, several companies are also experimenting with Western-inspired fillings. For example, Weiduomei has launched innovative mooncakes featuring French-style cheese and chocolate-hazelnut combinations, seamlessly blending tradition with modernity to meet evolving market trends.
That’s all for the news on the domestic pastry and bakery industry—sales, which initially surged, are now gradually leveling off. Additionally, in line with the government’s recent regulations governing the Mid-Autumn Festival mooncake market and the growing trend toward rational consumption, mooncake packaging not only highlights traditional cultural elements but also features a more restrained, eco-friendly design. This approach helps keep mooncake prices affordable amid rising production costs for businesses.
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