Currently, the domestic snack food market is gradually improving its entire food system, with total industry output rising year by year, sales maintaining a stable growth of nearly 30%, and the compound annual growth rate of industry sales revenue exceeding 20%. From a market regional perspective, first-tier large and medium-sized cities have become the main battlefield for snack foods, with supermarkets and specialty stores of all sizes filled with snack food products. However, the domestic snack food industry is far from saturation. With national support for western and urban-rural construction, the gap between the east and west is gradually moving toward regional balance, and consumption levels in second- and third-tier cities have been significantly enhanced. At the same time, as more people return to their hometowns, the spread of new ideas and concepts has accelerated, driving consumption changes across regions and laying a solid potential market for the snack food industry. From the perspective of industry competition, the total import food market in China has maintained an average annual growth rate of 15% over the past five years. By 2018, China will become the world's largest importer of food. In the long term, domestic snack food competition will mainly be between international brands led by Nestlé and Mondelez (Kraft Foods) and domestic brands such as Dali Group, Yake Food, and Want Want. In terms of channel development, the snack food industry has seen the addition of e-commerce and O2O models, which have shown impressive performance. E-commerce has become a new battlefield, and the future will inevitably develop toward new models. Therefore, the future prospects for the snack food industry are positive, showing a prosperous trend.

However, with increased investment from numerous domestic and foreign snack food enterprises, the industry's product range is unprecedentedly rich, and consumer choices are extremely diverse, leading to severe homogenization. But with rising consumption capacity in first-tier cities, companies are seeking innovation and differentiation in deep market segmentation, and the overall consumer base is becoming younger. The entire industry is showing a trend of innovation. Finding a blue ocean in the red ocean is the focus for future snack food companies; whoever seizes market opportunities first will take the initiative. According to industry development trends, there will be three major trends in the future of snack foods.

  1. Scarcity of Raw Materials in Product Development As a category of FMCG, snack foods are consumed during leisure, rest, and gatherings. They are rich and diverse in both product types and forms. Currently, the main snack foods sold in the domestic market include traditional biscuits, puffed foods, pastries, cereals, candies, roasted seeds and nuts, meat and fish products, and dried fruits. These eight categories dominate snack food product development. Due to long-term development, the number of food enterprises is large, and the traditional eight categories have been over-exploited; even launching new products lacks novelty. Due to long-term consumption, the public's interest in traditional sunflower seeds, candies, chocolate, and preserved fruits is gradually declining, and they no longer maintain high consumption enthusiasm. How to stimulate public consumption desire has become the focus of enterprise product R&D. Consequently, new categories such as boiled foods, pickled foods, and dry powder mixes have gradually joined the snack food ranks, becoming new highlights in the industry.

Why do boiled and pickled products, which are niche and have unique tastes and forms, win public favor? On one hand, this stems from the profoundness of Chinese food culture; unique ingredients are easily accepted by curious consumers. On the other hand, it benefits from snack food companies attempting to differentiate their products and maximize their core competitive advantages. Many small and medium-sized enterprises lack capital and channel advantages, so they are willing to launch specialty products. Against this industry background, future snack food product development will inevitably move toward scarce raw materials. Unique ingredients from various regions of China and raw materials from around the world will be presented to domestic consumers. For example, Jiangzhong Monkey Mushroom Biscuits is a model; it started from scarce raw materials and won consumer favor. In the future, such products with scarce raw materials will open up many new snack food subcategories and guide mainstream consumption in the future market.

  1. Composite and Value-Added Brand Appeals With intensified competition in the domestic snack food market, the battle between the two camps will inevitably worsen, and countless new entrants will join. Building core competitiveness is key for future enterprises, and more and more companies are paying attention to brand building. As the market matures, domestic snack food products, packaging, and standards will become more professional and standardized, and the role of brands will become increasingly important. At the same time, the improvement in national consumption capacity has a significant pull on high-end demand, promoting the vigorous development of the high-end snack food market. In first-tier cities and developed second- and third-tier cities, local high-end consumer groups have begun to emerge, leading to the birth of a batch of high-end snack food brands. Fujian Huikouke Food has taken advantage of this high-end and brand trend to launch a high-end waffle product. Not only does it highlight the taste and craftsmanship value in brand appeals, but it also invited national goddess Liu Tao as a spokesperson, greatly enhancing the product's value. The partnership between Huikouke and Liu Tao also created a romantic story of "goddess" and "deliciousness" in the food industry on National Confession Day 520. This is a dual combination of product core advantages and spokesperson advantages, strengthening the appeal. It not only interprets the taste, quality, and craftsmanship of Huikouke waffles but also uses a national spokesperson to highlight the combination of product craftsmanship, taste, and consumer group fashion.

Especially with the rise of imported snack foods in China, the high-end snack food market has been stimulated. If snack foods do not meet consumers' pursuit of high-quality life and status display in terms of taste, quality, and packaging, it will be difficult to capture their hearts. Therefore, future brand appeals for snack foods cannot be based solely on functional attributes; they should be combined with the era, society, and consumption environment to strengthen the composite support of the brand.

  1. High-Quality Enjoyment-Oriented Consumer Demand With the increase in per capita disposable income and the upgrading of consumption structure, people are paying more attention to quality of life. During the gradual transformation of consumer living standards, the original snack food consumption pattern, which was mainly for subsistence, is gradually shifting toward enjoyment-oriented good living. A large number of products with flavor, nutrition, function, and original ecology have emerged. Moreover, with the evolution of the times, snack foods are no longer mainly eaten at ordinary times; sometimes they become a snack or meal replacement, part of the main meal, or even a substitute. Due to the expansion of sub-health conditions among modern people, urban consumers are paying more and more attention to health. The concept of healthy snack foods involves low sodium, low salt, low saturated fat, non-fried baked types, no additives, no preservatives, etc., becoming the "fourth meal" in consumers' three meals a day, opening up a new market for nutritional enjoyment.

At the same time, survey data from the snack food industry show that 58.4% of people care more about the nutrition and health aspects of food when choosing snack foods. They pay more attention to green, natural, and healthy foods, and are also very interested in foods rich in vitamins and other functional properties. The core consumer group for future snack foods is consumers aged 22-35. They are highly educated and have grown up under the influence of brand concepts. They pay more attention to brand quality and product nutritional functions. Especially female groups, who worry a lot about eating, will inevitably see more segmented high-quality products in the future, such as those supplementing vitamins, beauty, eye care, weight loss, anti-fatigue, and low-fat. Huikouke waffles, as a high-end leisure pastry, have a core appeal of a nutritional ratio of three parts eggs to seven parts ingredients, with a near-perfect taste and nutrition. This is also driven by the times, catering to the high-quality enjoyment needs of the public.

In the future snack food industry, international brands have overwhelming competitive advantages, while the competitive advantages of local brands are gradually weakening. To break through, one must not play by the rules. Do not try to grasp all industry trends; if you can seize one point and do it deeply and thoroughly, you will be on the fast track to success.

Source: Sales and Market

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