Major Food Manufacturers in China I Daxue Consulting

14Jan2016

The Bakery Industry: Major Food Manufacturers in China

Chinese consumers are becoming more aware of where their food comes from. With the amount of food scandal often reported in China, Chinese consumers are more and more attracted to Imported food but eating foreign brand food is not inexpensive. Food manufacturers in China are still getting market shares. Here’s a look at some of the largest food companies in China.

Source: www.sundaytimes.lk

Orion Food Co., Ltd

In 1997, Orion Food Co., Ltd, established by Orion, one of South Korea largest food manufacturers. Orion Food Co., Ltd, has invested greatly in developing new products to suit Chinese consumer’s habits and needs with a closer look on their traditions and eating habits. The company has 3 production bases and 4 headquarters in China and runs over 69 services offices. Orion’s main products include tarts, pies, chocolate cakes and tiramisu. Among these products, the Orion Pie is sold in more than 60 countries and regions, accounting for about 70% of the international chocolate pie market.

Shanghai Christine Foodstuff Co., Ltd

Shanghai Christine Foodstuff Co., Ltd, was established in 1992. It is Shanghai-based, Taiwanese business. The enterprise produces Chinese and foreign pastries, bread, decorative cakes and mooncakes. Shanghai Christine has established five factories under the good manufacturing practice pattern and has over 800 franchised stores. In 2006, the establishment of its first flagship store, sweet lovers, greatly improved the brand image of the enterprise. Products are also exported to the Japanese market. Shanghai Christine has developed steadily in recent years, with its market share increasing from 3.6% in 2004 to 6% in 2014. Total assets and profile also increased strongly over this. The profitability of the enterprise is much higher than the general level of the industry. This is because the company uses an advanced customer services managerial system. Profitability of foreign bakeries is usually higher than local enterprises in this industry.

Huajia Foodstuff Co., Ltd

Located in Guangdong province, Huajia Foodstuff Co., Ltd, is a wholly-owned subsidiary of Hong Kong Garden Co. Ltd (Garden). It was one of the first foreign-owned enterprises in the bakery industry. Garden produces bread, cakes and bakery products. Garden’s main brands include Garden, Lihua and Xingmu. The enterprises also manufacture private-label products for other well-known manufacturers. Garden is one of the largest manufacturers of bread, cakes and bakery products in Hong Kong. Core business revenue, profit and assets grew rapidly from 2004 to 2007. However, due to intensified competition in the industry, Huajia Foodstuff’s market share has decreased from 4% in 2004 to a 1.8% in 2014.

Hangzhou Dingyuan Food Co., Ltd

Established in 1995, Hangzhou Dingyuan Food Co., Ltd is a subsidiary of Tingyi cayman Islands Holding Corporation. Hangzhou Dingyuan Food Co., Ltd develops and produces bakery and bread products for its parent company. Its main products include crisp-bake cookies, muffins, egg rolls and rice cakes. The company only began to return a profit in 2005. Core business revenue increased steadily from 2004 to 2010, totaling $90.1 million in 2010.

Labi Xiaoxin Food Industry Co., Ltd

Labi Xiaoxin Food Industry Co., Ltd was established in 2000. The company is based in the Wuli Science & Technology Park in Jinjiang City. Its key products are sold in over 30 provincial areas nationwide. The company has established close links with large retailers both at home and abroad, such as Walmart, Metro and Carrefour. The company’s products are exported to North America Europe and South-East Asia.

Guilin Sea Mild

Guilin Sea Mild Biology Technology Development leads the breakfast cereals market and accounted for a value share of nearly 20% in 2014. Unlike a lot of companies in the same industry, Guilin Sea Mild is specialized in hot cereals, with an overall leadership that is mainly thanks to its strong distribution network and well-established brands. Guilin Sea Mild’s positioning is as mid-priced and thus advantageous from a wide potential customer base. The company is also targeting the elder people as main consumers proposing fortified products such as Seamild Nutrition Cereal for the Elderly, High Calcium Walnut Cereal and High Iron Red Dates Cereal. The company gained almost half a percentage point value share last year, in 2014 over the previous year thanks its strong reputation for quality and reasonable selling price.

In 2014, breakfast cereals have reached 6% value CAGR. Leading companies will still focus on the well-tailored consumer by offering products meeting the specific demands of consumer groups. For instance, in order to answer to the needs of elderly people, companies will take inspiration from Chinese traditional medicine. An ongoing rise for sugar-free and nutritious products will be more and more present, in response to the consumer’s awareness on food safety.

Others players within the industry: Wendeng Changgong Foodstuff Co.Ltd, Shanghai Yuanzu Mengguozi Co.Ltd, Beijing Bama Foodstuff Co.Ltd, Guan Shen Yuan (Group) Company Limited, Dongguan Wanhao Foodstuff Co.Ltd

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