---
title: "Yellow Peach Cans Trigger a Buying Frenzy, Urgent Need for Long-term High-quality Development in the Industry!"
description: "As the epidemic evolves, yellow peach cans have sparked a buying frenzy across China, reminiscent of childhood memories. While the industry faces challenges such as low profits and outdated marketing, experts urge companies to focus on long-term development rather than short-term trends."
author: "任志安"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-12-15"
language: "en"
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# Yellow Peach Cans Trigger a Buying Frenzy, Urgent Need for Long-term High-quality Development in the Industry!

> As the epidemic evolves, yellow peach cans have sparked a buying frenzy across China, reminiscent of childhood memories. While the industry faces challenges such as low profits and outdated marketing, experts urge companies to focus on long-term development rather than short-term trends.

**Introduction: Enterprises must never rely on a "passing trend" for development, nor should they profit from a "fleeting wind."**

Recently, with the development of the epidemic, besides medicines like Lianhua Qingwen and ibuprofen, yellow peach cans have also become hot sellers. Many people have expressed, "When I was a child with a fever or cold, my mother would buy me yellow peach cans," and yellow peach cans have sparked a buying frenzy in many places across the country.

**The Origin of Canned Food and Its Domestic and International Market Performance**

The origin of canned food stems from the needs of war. According to relevant records, at the end of the 18th century, French Emperor Napoleon was campaigning across the globe. To provide the military with a long-lasting food supply, he offered a reward of 1,200 francs to anyone who could invent a container suitable for food preservation. A French pastry chef, Nicolas Appert, and his wife, through continuous research, finally invented a method of sealing food in glass bottles in 1804 and received the 1,200-franc prize in 1810.

The canned food industry is an important sector for the processing of agricultural and sideline products and a traditional export industry for China. It has long made significant contributions to earning foreign exchange through exports, revitalizing urban and rural economies, and ensuring military supplies. Chinese canned food is not only sold domestically but also leads globally in exports. From January to December 2020, China exported a total of 504,500 tons of canned fruit, with a total value of $575 million. Compared with the same period in 2019, the volume increased by 4% and the value by 5%. Among these, China exported 253,600 tons of canned oranges, accounting for 50% of total canned fruit exports, a year-on-year decrease of 5%; China exported 157,800 tons of canned peaches, accounting for 31% of total canned fruit exports, a year-on-year increase of 18%; China exported 59,100 tons of canned pears, accounting for 12% of total canned fruit exports, a year-on-year increase of 20%.

From January to December 2020, among the 113 countries and regions to which China exported canned fruit, the top ten by export volume were: the United States, Japan, Thailand, Chile, Germany, Canada, Malaysia, the Russian Federation, Mexico, and Australia. Among them, the United States ranked first (data source: Forward Industry Research Institute). However, due to various factors, most export enterprises did not complete their 2022 export orders. Although China has always been a major exporter of canned food, domestic consumption has been lukewarm. In the past 20 years, few new enterprises have entered the canned food sector. With the overall performance of consumption upgrading, most canned food enterprises have shown a transformation trend, such as shifting to beverages and snack foods. This is the choice of most canned food enterprises, and another is diversified innovation. Our per capita canned food consumption is far lower than that of Europe, the United States, Japan, and South Korea, which is closely related to consumption concepts and pace. However, in recent years, with the continuous changes in the domestic market, the domestic market for canned food consumption has shown a clear trend of recovery. Overall, the canned food industry lacks entrepreneurial and craftsmanship spirit. Of course, enterprise development cannot be separated from the progress of the times. How can we do well in the canned food industry?

**The "Pain" and "Opportunity" in the Development of the Canned Food Industry**

China's canned food industry is not lacking in old enterprises. For example, Huaquan Canned Food was founded in 1987 and has persisted in this industry for 35 years. However, there are relatively few enterprises that have consistently adhered to development in the canned food industry, and there are also obvious reasons and unspoken pains in the industry. The industry's pain points are mainly manifested in:

1) Seasonal production and annual sales require financial strength;
2) Subject to the purchase price of seasonal fruits, making it difficult to predict;
3) Diverse taste requirements make it difficult for production enterprises to control costs, such as grapes, strawberries, etc.;
4) Most canned food enterprises are in the 1.0 era of marketing, with low compatibility between marketing and the times;
5) Overall industry profits are relatively low;
6) The industry lacks talent;
7) The upstream industrial belt is dispersed, leading to cross-industry competition;
8) Succession issues with no one to take over family businesses;
9) Relatively low automation, with high labor demand;
10) Concentrated production cycles test organizational capabilities and credibility;
11) Uneven quality damages industry development.

Currently, the total domestic canned food industry is about 40 billion yuan, and the domestic gift industry is about 1.5 trillion yuan. However, there are some problems. Because the overall profit of the canned food industry is relatively low, marketing talent and methods are scarce, marketing lags behind, regional brands are obvious, and competition methods are single, high-quality development is imminent. Innovation in specifications, tastes, and packaging can no longer meet the choices of new consumers. The lack of brands, weak channels, shortage of talent, and cross-industry competition are the real ills of today's canned food industry. Today's "crazy peaches" may not be a "good thing" for enterprises, distributors, and channels; only channels are the "main course" for long-term enterprise development. To maintain long-term high-quality development of the canned fruit industry, it is necessary for the industry to advance together, unite as one, uphold integrity and innovation, break the uneven quality issues, and break the vicious competition within the industry.

**How Should Distributors Choose Canned Fruit?**

Distributors should view the "crazy peaches" rationally:

**1. Whether it meets long-term growth needs.** Most distributors like to sell products that sell well at the moment, but products that sell well at the moment should be viewed more rationally. Whether it has been accumulated over a long period, whether it has been recognized by the market, and whether it is suitable for long-term operation are questions you must consider.

**2. Shelf life advantage.** Canned products generally have a longer shelf life, which distinguishes them from general FMCG products. However, it is important to clearly understand that the longer shelf life is not due to additives but is a basic physical property.

**3. Distribution advantage.** Whether it fits your delivery cycle. Compared with instant noodles, snack foods, meat products, beverages, etc., the delivery cycle for canned goods is longer.

**4. Profit advantage.** Relatively stable profit returns. Most first-line brands tend to squeeze distributors' profit margins, while the canned food industry can maintain relatively reasonable profits in the long term.

**5. Channel precision and consumer choice.** Today's consumer goods are no longer about meeting needs but more about meeting consumer choices. In a world full of dazzling products, it is more about meeting the needs of consumers' diversified and personalized choices. The concept of increasingly refined choices among the public is basically mature.

**6. The canned gift box track is becoming increasingly mature.** Most Chinese festivals choose beverages, eight-treasure porridge, instant noodles, milk, etc. Canned gift boxes should be a good choice to meet consumer choices. Canned fruit as gifts more reflects family affection, memories, warmth, affordability, and sincerity.

**How Long Can the Current "Peach and Pear Epidemic" Wind Blow?**

With the continuous changes in the epidemic, people's home-stocked canned fruit has been "crazy for many days," and yellow peach cans have quietly become a different kind. The author believes that today's "crazy peaches" are more of a good "placebo," adding a bit of family affection, a bit of memory, and a bit of comfort. Recently, the author had the honor of visiting Hebei Huaquan Food (founded in 1987) and received a relatively rational answer. Multiple confirmations show that yellow peach cans do have the basic effects of supplementing energy and vitamin C, but they also indeed have the good effect of a "placebo." During this visit, Mr. Pei Jigeng, founder of Huaquan Canned Food, stated that **enterprises must never rely on a "passing trend" for development, nor should they profit from a "fleeting wind."** He said that the development and growth of an enterprise rely on integrity, altruism, and quality. Huaquan Canned Food should maintain relative rationality in this "evil wind," first meeting the needs of long-term partners. This year, there have been varying degrees of raw material price increases, but Huaquan Food still maintains a relatively steady development concept. This year, Huaquan Food has sorted out its product structure, focused on channel construction, positioned its development direction, established a co-management concept, and strengthened its corporate determination. The author believes this is the real way to develop. The author believes that with the approach of the double festivals, the continuous changes in the epidemic, the confidence in enterprise development, and the east wind of "crazy peaches," it is more conducive to the development and innovation of the domestic market and to the awareness of canned food among new consumer groups. May this "evil wind" gradually turn into a spring breeze for the canned food industry.

**About the Author:**

Ren Zhi'an has been engaged in sales, marketing, and operations for 22 years. He has worked for Jianlibao, Jinmailang, Laocaichen, Zhongdao Shares, Chongqing Salt Industry, and Hebei Salt Industry. He has served enterprises including Hebei Huaquan, Yinhai Salt Industry, and Huihong Food. His focus areas include FMCG enterprise strategic planning, product positioning, product design, channel focus, non-human resource management, organizational structure improvement, and compensation systems.


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