China Food

Hunting Z generation dining table

War hits the condiment market.

Chinese people have a persistent belief in “eating”, and the pickiness about “frying, boiling, steaming, frying and frying” often comes from the soul.

In the face of the extensive and profound food culture, Z generation has no difficulty. Hot pot, string, barbecue and spicy bar are all the same. Just as generation Z has led many new consumption trends such as blind box and Guochao, their diversified demand for food and new and unique ideas are actively promoting the consumption upgrading of condiment market and the competition pattern of this market.

According to the enterprise survey data, there are 89678 newly registered seasoning enterprises in this year, more than 6000 more than in 2019, and the industry heat has reached a new high.

Many undercurrents are surging. Condiments, Internet food brands and small household appliances have become the three most popular consumer goods. Especially under the market value aura of “sauce Mao” seafood industry, the whole industry seems to be gilded.

New and old players scuffle

All along, salt, soy sauce, vinegar and monosodium glutamate are the most familiar seasonings for Chinese people, but these are not the only seasonings.

Condiments are mainly divided into two categories: single condiment and compound condiment. With the trend of consumption upgrading in the industry, more and more compound condiments come into our life, and new products such as lobster sauce, sauerkraut fish sauce, Chongqing noodle sauce emerge in an endless stream.

The popularity of compound condiments is booming, which also means that the era of unifying the rivers and lakes by a single soy sauce or vinegar is fading.

The first reaction is the seasoning enterprises such as Haitian, which soak in warm water all the year round. As a result, most of them adopt the strategy of expanding product line and high-end, and half of them only step on the route of high appearance value and high price.

In Haitian’s tmall official flagship store, the new retail business review saw new products such as jiannaked soy sauce and Qingjian soy sauce, as well as 59.9 yuan / 480ml organic soy sauce and 39.8 yuan / 85g XO sauce.

Coincidentally, Li Jinji and Qianhe have launched their own high-end condiments.

These new products are tall in appearance, with organic, natural flavor and low fat as selling points. The price range rises to 30-50 yuan, which makes netizens call “there is gold in soy sauce”. Imagine, with the shape of a red wine bottle, the price of more than half a hundred soy sauce, and then paste the dishes are “beautiful”.

Although the giants have broadened the moat, they can’t stop the new forces coming into the industry. They mix together and stir up the whole seasoning world.

The choice of grain and oil brands is positive, hard and hard for the seafood industry. This year’s golden dragon fish launched sesame oil, aromatic vinegar and other condiments; YIHAI KERRY, COFCO, Shandong Luhua, etc. have also launched the same brand of soy sauce, directly attacking the base camp of single condiment.

The brands of catering enterprises choose circuitous tactics and mainly choose the compound condiment market. After Haidilao, Xiaofeiyang and Gubu launched hot pot seasoning, more and more catering enterprises such as Peijie and shudaxia entered the seasoning market.

What’s more lively is the intensive entry of big V, wanghong and emerging brands. In the past, there were Lin Yilun’s Fanye, Yue Yunpeng’s three or five confidants, and now there are condiment brands hatched by food writers Wang Gang, Li Ziqi, Shuzhong taozijie, etc.; HEMA Xiansheng and Netease also launched condiment brands, and got good market feedback.

In addition, a number of new players have emerged in the entrepreneurial team, such as spicy workshop, which raised funds at the end of last year, and the post-90s entrepreneurial team, which recently obtained financing, have added some flavor. According to the business card and Jingzhun data, more than 25 compound condiment projects were successfully financed from 2017 to November 2020.

So far, all parties have come on the stage, and the investment institutions have changed their style of “only focusing on and investing less money”, which has fueled the popularity of the whole industry. The excitement also makes people curious: in the past, the seasoning giants who have been making money have experienced many big waves. Now, facing all kinds of new entrants, why do they react more fiercely than before?

Changes under the tongue of generation Z

The condiment market has entered a new cycle, which means that the industry has released enough incremental space. The driving force behind this is not only the expansion demand of downstream b-end such as food processing enterprises and catering enterprises, but also the new catering consumption demand dominated by generation Z.

On the one hand, the diet solutions and scenarios of generation Z have changed. Different from family cooking and dining in the canteen in the past, Bento and takeout have become the dining scenes of Chinese people, especially young people.

According to CNNIC data, as of June 2020, the number of online takeout users in China has reached 409 million, of which the post-90s and post-90s account for more than 60%.

What is more noteworthy is that not only the normal meals, but also the willful Z generation is erasing the boundary between condiments and snacks, thus strengthening the invisible function of condiments.

When takeout and snacks are increasingly becoming an important part of people’s life, they not only give birth to condiments with multiple tastes, but also make these condiments more convenient and lighter.

A number of Internet take out seasoning and catering brands have reached this new demand of consumers, and launched a kind of rice dressing that can match with coarse grain porridge and light food.

For example, Hubang chili sauce launched small packaging products such as “tinplate” and “yogurt Cup” for take away scenes, which were deeply liked by Z generation, and even specially purchased. With such innovation, the market sales of Hubang chili sauce in 2019 will reach nearly 200 million yuan, opening a gap in the market where Laoganma unifies the whole world.

On the other hand, Z generation pursues more simple and more yuan flavoring products. At present, the post-90s and other young people gradually form families and begin to cook. At the beginning of the year, the epidemic also made more people choose to cook at home.

According to Nielsen’s data, 86% of Chinese consumers want to eat more at home after the epidemic, but the fast pace of work and life is obviously an objective reality that young novice cooks have to face – being able to cook delicious food quickly and simply has become a new demand of young people.

As a result, the “light cooking” condiments, which are easy to operate and can be used immediately, are very popular, and a large number of compound condiments with different flavors, such as spicy sauce, convenient condiments and so on, such as pork tripe chicken, snail powder and so on.

Finally, in the context of consumption upgrading, consumers including generation Z pay more attention to diet health. With the improvement of domestic living standards, brand quality, diet and nutrition are increasingly valued by the society. Especially in the aging, three high chronic disease younger, body management and other ideas, the birth of low-fat, low sugar, no added food requirements.

According to the 2020 white paper on adult health management in China, young and middle-aged people aged 25 and above are paying more attention to health, and pay attention to adjusting diet and daily diet.

In this wave, people are willing to get better quality and healthier condiments at higher prices, which also promotes the condiment industry to upgrade in the direction of high-end, giving birth to more sub categories. This is the bottom motivation for Haitian and Qianhe to launch organic, zero added and fat free flavoring products.

Breakthrough genes of new players

The channel and supply chain have always been the moat of condiment industry, and are also considered as the factors restricting the development of new players. In this round of Z generation promoted condiment upgrading process, condiment compounding also promoted the ceiling of the whole condiment industry.

According to the data of intelligent research consulting, the scale of China’s condiment market will reach 334.5 billion yuan in 2019. It is estimated that the compound annual growth rate of condiment retail sales in the next five years will be about 7.08%, and it will be close to 500 billion yuan in 2022.

Under the vast living space, can new players break through the limitations of channel and supply chain and build their own moat?

In this 100 billion track, monosodium glutamate, soy sauce, vinegar and other single condiments are the three main forces. In 2019, the overall market share will be 15.11%, 10.85% and 4.79% respectively, accounting for about 30%.

In addition, according to the data of Guohai Securities, only in the soy sauce market, haitianwei, Li Jinji and other leading enterprises account for about 20%, and the industry concentration is low. It can be seen that even the single condiment field of giant Rulin is not the absolute overlord of the industry, and regional players still have a market.

Like single condiment, compound condiment market is highly dispersed. According to the data of Dongxing securities, the market concentration of compound condiment is less than 20%, and there is no national brand. Therefore, driven by the consumption trend of generation Z, the compound seasoning market has become a centralized landing point for new brands and new products, with enough market dividends.

In addition to market space, in the trend of channel diversification, retail online, and digital marketing, new players also get the chips to break through.

Although traditional condiment, grain and oil, and catering enterprises are the direct beneficiaries of channel diversification (stable distribution channels, catering stores, etc.), new condiment players such as wanghong and entrepreneurial team are the players in the industry who are prepared for generation Z and are born with the gene to break through.

Young people are more used to getting information from social media, KOL and other channels, which gives the online celebrities and gourmet big V players who have fans’ traffic and are familiar with the operation rules of social media a natural marketing advantage – compared with traditional brands and offline channels, they have a shorter consumption radius with generation Z, and are easier to plant grass to consumers through the front-end traffic advantage.

For example, in July this year, liziqi’s flagship store sold 63000 condiments (hot pot seasoning, beef rice dressing sauce, Tieguanyin chopped pepper sauce) monthly, with a monthly revenue of 3.125 million yuan based on retail price; its main product, instant snail powder, sold more than 1.5 million condiments, with a monthly revenue of nearly 60 million yuan.

For the entrepreneurial team, the e-commerce platform and online catering community are used to precipitate a group of high viscosity users, and according to the user portrait of taste preference, compound condiments are targeted. All of these make up for the lack of online and offline channels, and are also opportunities for entrepreneurial teams to overtake.

For example, Chihuo community accumulated platform traffic through in store service, and based on this fission condiment brand “Chihuo food”; Hubang chili sauce, based on the relatively closed Internet take out channel, completed the counter attack in the initial stage, and developed more than 100000 catering terminals in total. In terms of marketing methods, it cooperated with wanghong daweiwang, Zhilian recruitment, Pepsi Cola, etc., and cooperated with Li Jiaqi and Weiya Live broadcast with goods.

These operations make it easier for new players to be familiar with and recognized by Z generation and survive in the condiment market.

Now, on the small table, new and old players are ready. On the one hand, they are afraid of the old traditional brands, and on the other hand, they are the new generation. How to stand out, a single condiment or composite category is not the core, the key is to focus on the needs and preferences of the new generation of consumers, continue to innovate products, constantly broaden the service boundary, in-depth service segmentation crowd and scene.

Only in this way can we get the recipe code of the next table and grow into a national seasoning brand.

Author: Han Ye; source: new retail business review (ID: xinlingshou1001), reprint authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). high quality original selection column hot news in a week | innovation interview – lingting | new Xiu brand | trend insight | packaging outpost food people are “watching”

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