Jinan Extrusion Machinery Market Analysis

A sound market decision stems from accurate market analysis. So, what is the current state and future trajectory of the expanding food market you are about to enter?

Current Status of Extruded Snack Foods

Modern leisure snacks in our country originated in the mid-1980s, with the "Sun Brand Rice Crisps" as a representative product. As people's living standards improved, the food structure gradually shifted from a focus on basic needs to flavors, nutrition, and enjoyment, giving rise to the vitality of leisure snacks. In the early 1990s, manufacturers mainly from Taiwan set up factories in Guangdong, Fujian, Jiangsu, Beijing, Tianjin, and Shanghai, introducing a series of puffed snacks. Domestic equipment manufacturers also began producing puffed snack processing equipment, marking the emergence of a certain scale in the leisure snack market. Due to the substantial profits and simple production process, many small enterprises joined the production ranks, fueling continuous growth in market consumption. By early 1996, the sales of leisure snacks exceeded 600 million yuan, with products mainly made from potatoes, corn, rice, and other ingredients through puffed processing, with an annual output of over 200 million tons. In 1999, the sales volume of puffed leisure snacks nationwide reached 54,986 tons. Currently, the consumption of leisure snacks in Shanghai alone amounts to 60 billion yuan, with a significant proportion being puffed snacks.

1. Regional Distribution

Viewing the distribution of our company's equipment sales, the national market is divided into four regions: North (Jingjinji, Shandong, Jilin, Hebei), East (Jiangsu, Zhejiang, Shanghai, Anhui, Henan), South (Fujian, Guangdong, Hunan, Hubei, Jiangxi), and West (Sichuan, Chongqing, Yunnan, Guizhou, Shaanxi). In 1999, both the North and East regions accounted for over 30% of the national sales of expanded snacks. The South and West regions were similar, with the South region experiencing a slight increase in sales compared to the previous year, while the West region saw a decline.

In the four representative regions of Beijing, Shanghai, Guangzhou, and Chengdu, both Shanghai and Beijing have reached over 20% of the national sales share in the膨化食品(crisp food) market for large cities. The immense market potential has made these areas a hot spot for businesses to vie for. Guangzhou and Chengdu each account for 6%. The economically vibrant and highly purchasing power market of Guangzhou, due to its consumer psychology and habits, holds only a 6% market share.

2. Sales Channels

In the overall market across the country, including towns and rural areas, the industry is divided into three distinct formats: department stores, convenience stores, and other shops. Puffed snacks are primarily sold through convenience stores, accounting for 59% of the market share. This characteristic is evident across all regional markets, with the West region being particularly pronounced. In the West, where department stores lag behind other regions, the sales share of convenience stores in the snack category has reached 70%. In the flourishing Eastern region, department stores and convenience stores are in a state of mutual competition in the sale of puffed snack items.

3. Competitive Landscape

The popped snack industry, as an increasingly mature sector, has seen some large enterprises establish their own brands and dominate the market. They hold certain advantages in terms of finance, production, research and development, and distribution channels. With a deep understanding of the market and the level of competition, they are in a favorable position in the competition. Small and medium-sized enterprises and individual businesses also occupy a certain advantage in regional markets and smaller cities. Their strength lies in creating or occupying a niche in the mid-to-low-end wholesale markets, as this consumer group remains substantial.

4. There is still ample profit margin.

Puffed snacks are a product with rapid changes in variety, despite fierce market competition. Due to their simple processing, low equipment investment, easily accessible raw materials, and low production costs, they continue to attract numerous investors to join the industry. They aim to achieve substantial profits through product, marketing, and management innovations.

Section II: Direction of Extruded Food Development

In the early 1990s, the State Council and the China Light Industry Federation successively issued the "National Food Industry Plan" and the "Science and Technology Development Plan for the Light Industry in the 9th Five-Year Plan and 2010," emphasizing the need to rapidly establish a comprehensive and rational modern food industry system in China and increase the proportion of processed foods in the diet. Priority will be given to the development of "nutritious, healthful, intelligent, and anti-aging" baby and maternal food, student food, elderly food, and health food. Efforts will be made to develop a series of convenient and fast-food products, fully leveraging the role of science and technology, and striving to improve resource conversion costs and production efficiency in line with high-output, high-quality, and high-efficiency directions.

As Chinese incomes rise, there is a shift towards "three lows and two highs" in food consumption: low in fat, salt, and sugar; high in nutrition and quality.VitaminThe trend towards high-fiber consumption extends to snacks as well.

The unique characteristics of puffed snacks determine their positioning as mass-market and leisure foods, with their发展方向 being deliciousness, convenience, nutrition, and affordability. Currently, the puffed snack industry has shifted from quantitative growth to qualitative growth. Faced with fierce market competition in the puffed snack sector, product lifecycles are increasingly shortened, and consumer psychology is becoming more sophisticated. There are new demands for the flavor, active ingredients, and nutritional value of puffed snacks.

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1. The niche market highlights its unique personality.

With the increase in public holidays (at least 115 days a year are weekends and public holidays) and the improvement of living standards, this presents endless business opportunities for leisure food.

Puffed snack foods are not just for children and teenagers; they should be a staple for the general public. Currently, the primary consumer group for puffed snacks is children and teenagers, with products often focusing only on packaging or shape, or excessively boosting advertising. Efforts tailored to the characteristics of different consumer types are notably insufficient. The consumer base for leisure snacks seems to lack a clear target audience. Many product sellers claim "suitable for all ages," but in reality, being suitable for all ages might not resonate with both the young and the old. Shelves are filled with choices, yet consumers still feel there's nothing for them. Although new products are introduced constantly, most only enjoy popularity for a couple of years.

Snack foods are considered a hot market product in the 21st century. Therefore, in product development, in addition to adding flavors, beautifying packaging, and changing shapes, and developing health functions, it is essential to design different nutritional values, eating methods, and flavor characteristics for various consumer groups such as the elderly, young adults, students, infants and toddlers, office workers, tourists, bar-goers, and family-oriented individuals, through "segmented formula" and "chunked formula" approaches, in pursuit of clear and distinct膨化休闲食品.

2. Expanded Variety, Enhanced Flavors

Cuisines and dietary habits vary greatly across different regions, making it challenging to unify tastes under one flavor. We should honor traditional flavors while also evolving towards new, unique, and exotic directions. Developing products that cater to the specific needs and preferences of diverse regions and demographics, each with its own distinct personality.

Currently, our膨化休闲食品调味料flavors include fruit, nut, vegetable, seafood, meat, dairy, and a variety of mixed flavors, totaling over 300 different types within the seven-series lineup.

By utilizing a combination of external and internal additions, along with a blend of both, the popped snacks achieve a pleasing head taste, a satisfying aftertaste, and a more authentic flavor.

Today, one can find a vast array of popcorn varieties in local markets, which was not the case 20 years ago. It can be said that there are still untapped food options that we will consume over the next 20 years. The 21st century is an era of rapid technological and informational advancement. With the continuous emergence of new ingredients, technologies, and processes, extruded popcorn will continue to thrive as a market with旺盛 market vitality.