Among the subcategories of China's snack industry, healthy snacks are growing the fastest. According to CIC data, by 2023, China's healthy snack market had reached 70 billion yuan, with a CAGR of 7.2% over the past five years, and is expected to exceed 100 billion yuan by 2028. Recently, national officials stated that a three-year 'Weight Management Year' action will be implemented to promote healthy lifestyles. This policy aligns with the consumption trends of 'low sugar, low calorie' and 'functional snacks', directly activating the growth momentum of the healthy food market.
Healthy consumption upgrade: Corn chips are on the verge of an explosive trend
According to data, the number of health-conscious Chinese consumers is increasing year by year, with 80% of people having the habit of checking nutrition labels on snacks. As consumer demand increases, the healthy snack market is also rising. The proportion of consumers who check nutrition labels before purchasing snacks in different countries (data from Mondelez International's 2022 Global Snacking Report). Among them, corn chip snacks, which have risen in recent years, have become one of the fastest-growing healthy snack categories. Searching for 'corn chip snacks' on online platforms yields over 650,000 products and hundreds of brands. Leading domestic snack companies have also entered the market with corn chip products. Compared to traditional potato chips, corn chips have lower fat content and are richer in dietary fiber than potatoes, promoting digestion and enhancing satiety. They are also friendly to people with blood sugar management needs and gluten sensitivity. Surveys show that 56% of consumers believe corn chips are healthier than regular snacks and prefer them when choosing snacks. (Public data compilation)
*Lab Snacks (食验室) According to Bezos Consulting's corn chip market research data, the global corn chip market reached 21.788 billion yuan in 2023, with China accounting for nearly 30% (7.011 billion yuan). North America is the world's largest corn chip market, with the U.S. accounting for over 50% of global sales, showing steady growth in a mature market. Europe accounts for 20-25% of the global market, with consumers in European countries having high requirements for product healthiness and natural ingredients, making healthy corn chips the mainstream trend. The Japanese and Korean markets are relatively small, with corn chip flavors deeply localized. China's corn chip market size and consumer awareness are still low compared to global standards, but with consumption upgrades and the spread of healthy eating concepts, there is immense growth potential.
Low concentration dividend release: New opportunities in the corn chip market
Currently, leading domestic corn chip brands are showing strong development momentum, with an average annual growth rate of over 100% for top brands. However, in terms of industry concentration, China's corn chip market is significantly fragmented, with CR5 (market share of top five companies) below 20%, far lower than the European and American markets (CR5 over 60%). The fragmented landscape of the corn chip category provides distributors with a window for differentiated product selection. In recent years, many distributors have reported that through precise distribution, they have captured the growth dividend of the healthy snack market, with corn chips surpassing multiple puffed snack items and gradually becoming a long-term best-selling healthy snack in the terminal market. An Eastern China distributor told the author: Corn chips sell very well in stores; since introducing corn chip snacks, monthly sales have increased by 40% compared to similar products before. Therefore, we predict: At least 1-3 leading brands will emerge, along with more powerful channel distributors prioritizing corn chip sales. China's corn chip market will grow at an annual rate of 18%, and by 2028, the market size is expected to rise to 16 billion yuan.
Category benchmark - Lab Snacks Corn Chips
No. 1 in online sales for three consecutive years
According to iMedia Consulting statistics, in the 2023 online corn chip food market, Lab Snacks held a share as high as 47.3%, and has been the No. 1 in online corn chip sales for three consecutive years, becoming the leader in China's corn chip market. Why has Lab Snacks taken the top spot in the online market? The author believes this is inseparable from the brand's research and improvement of product flavors. Some well-known North American corn chip brands have not achieved good returns in the Chinese market, as mainstream flavor options like cheese and yogurt onion have low acceptance in China. Not conforming to Chinese tastes is the main factor affecting Chinese consumers' purchases. Lab Snacks accurately observed the market and launched Thick Cheese Corn Chips in 2023, which better suit Chinese palates. Featuring 'non-fried, high dietary fiber, 0 trans fat', it emphasizes health attributes, catering to health-conscious Chinese consumers. Continuing to focus on the corn chip single product, in October 2024, Lab Snacks launched Fiber Crisp Corn Chips with five flavors: Spicy Cheese Rice Cake, Cilantro Beef Taco, Mexican BBQ, Garlic Cheese Butter, and Creamy Soup. Within just three months of launch, sales exceeded 10 million yuan. To maintain a leading position in the fiercely competitive market, Lab Snacks actively builds supply chain and technology barriers. It has established deep cooperation with professional institutions such as Huazhong Agricultural University and Hunan Agricultural University, founding the first national healthy snack research institute. Currently, it holds 16 patent certificates and masters four pioneering food health technologies. In addition, Lab Snacks has invested 80 million yuan to build a modern intelligent snack factory, equipped with a 100,000-level purification workshop, with an annual production capacity of about 3,000 tons. The factory introduces Swiss technology and advanced European and American processes, effectively reducing costs through independent production and enhancing product cost-effectiveness. Relying on core product advantages and continuously deepening omni-channel layout, Lab Snacks corn chips have become super bestsellers online and offline, including Walmart, snack collection stores, and Douyin. In 2024, Lab Snacks fully expanded offline, entering over 100,000+ retail terminals, covering from KA supermarkets to BC convenience stores. Within just one week of launching at Walmart, it jumped to the No. 1 position on Walmart's leisure snack list.
Final Thoughts
In the future, corn chips will become a super single product that can 'compete' with major items like potato chips. This health revolution in corn chips, driven by raw material innovation, not only disrupts the original solidified potato chip market landscape but also indicates the inevitable trend of the future food industry toward functional and healthy development.
This article refers to corn chips as thin and crispy snacks made primarily from cornmeal (or corn grits), processed through mixing, forming (sheeting/extrusion), baking/frying, etc. They are crispy in texture and can have salty/sweet/spicy flavors; they are flat and flaky, commonly triangular, round, or wavy.
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