China Food

Trillion business experience of “freezing” in young people’s fridge

from ice cream in summer to dumplings and dumplings in winter, new brands want to constantly fill young people’s refrigerators. Frozen products are becoming the next “trillion catering market”.
On the twelfth day of the lunar new year, Xiaojia emptied the quick-frozen goods in the shopping cart. In addition to two bags of fried dumplings, there are semi-finished food packages such as pickled cabbage fish in golden soup, kung pao chicken, Buddha jumping over the wall and so on.
“It’s Christmas and new year’s day right away. Store more to entertain friends.” After 95, Xiaojia has been out of control since she found the “treasure” of prefabricated dishes. For Xiaobai kitchen, semi-finished prefabricated dishes are not only fast and convenient, but also comparable to restaurant dishes at home.
Like Xiaojia, Doudou is also keen on fast food. Hand grabbing cakes and dumplings are his standing food. In addition, he was also planted with grass this year, such as small crispy meat, chicken nuggets with black pepper and so on. “Just one air fryer, you can enjoy the same delicious KFC.”
According to the sampling survey of new consumption in Guanchao, among the quick-frozen foods purchased by post-95 consumers, dumplings, hand-held cakes and ball products account for the highest proportion; Followed by small fried dough sticks, breakfast bags, small crispy meat, pizza and so on.
The data show that since this year, the sales of new brands such as Zhenwei xiaomeiyuan, xunweishi and lixiangguo have increased greatly, and the semi-finished dishes of old stores such as Guangzhou Restaurant and Meizhou Dongpo have also been popular with consumers.
According to the prediction of prospective industry research institute, the sales revenue of quick-frozen food industry will reach 175.5 billion yuan in 2021.
Delicious, convenient and endless frozen products have become the “magic weapon” to capture people’s hearts. From ice cream in summer to dumplings and dumplings in winter, new brands want to constantly fill young people’s refrigerators. Frozen products are becoming the next “trillion catering market”.
“Hot” frozen product market
When semi-finished products continue to enter the kitchen of young people, the purchase frequency ranges from low frequency to medium and high frequency, which brings more vitality to the whole frozen products industry.
At the same time, it brings vitality to the capital market.
According to incomplete statistics of public data, there were more than 10 financing events in China’s frozen products industry in 2021, with a total financing amount of hundreds of millions of yuan. Among them, there are 3 frozen product supply chain enterprises and 6 brands of quick-frozen food and prefabricated dishes.
The development of new brands is very fast. Zhenwei Xiaomei garden got the angel round two months after its establishment, and completed four rounds of financing in one year. XingTuo capital, zero one venture capital and Innovation workshop have injected capital one after another.
It is also worth noting that in addition to traditional investment institutions, Yuanqi forest and xiaohongshu have also sold. Yuanqi forest invested in the prefabricated vegetable brand “maizima”. In the same month, xiaohongshu invested tens of millions of yuan in the brand of low-temperature meat products “benweixianwu”.
Three meals with materials is a new retail project independently incubated by the “frozen products online” group, the first B2B platform of the cold chain food supply chain. It has been established for more than one year and has also obtained three rounds of financing.
Different from many brands. Three meals are expected to target young consumer groups, aim at the incremental market created by these groups, and bring convenient semi-finished prefabricated dishes to more C-end consumers through community chain stores with prefabricated food materials and terminal retail channels such as 24-hour unmanned self-service smart cabinets in office buildings and apartments.
Xu Jiacheng, vice president of Zhonghai investment, once said: “with the acceleration of the pace of urban life and the trend of family size miniaturization, the semi-finished food industry has ushered in an inflection point and entered a period of rapid development. The logistics and transportation of frozen products has its particularity, and the customer acquisition and performance efficiency of community retail terminals have obvious advantages over other channels.”
In addition, in April this year, the first stock in the prefabricated vegetable industry – taste and fragrance was born. As of press time, weizhixiang has a market value of 8.4 billion yuan. According to the data, the revenue of weizhixiang in the first three quarters of 2021 increased by 23.72% year-on-year to 570 million yuan, and the net profit increased by 9.02% year-on-year to 103 million yuan.
Anyi food once analyzed that the development of catering industry and the change of consumers’ eating habits have brought new development opportunities for quick-frozen food. hot-pot/" 22375 rel="nofollow" target="_self">Hot pot, Malatang, Kanto cooking and other snacks are gradually rising in families and streets, and the catering takeout market is also growing rapidly, which extends the consumption mode of quick-frozen food to the field of daily life and leisure.
The frozen products industry is a trillion market, but the number of frozen products SKUs is huge and the standards are different, the upstream and downstream are extremely dispersed, the information is asymmetric, the logistics and storage costs are high, the price fluctuates greatly, and the long-term development lags behind.
With the rapid development of takeout and the continuous attention to food problems, the frozen products industry continues to be standardized and standardized. B2B platforms for frozen products to improve the efficiency of the supply chain, such as frozen products home, frozen master, flying bear fresh and other frozen product procurement platforms, also follow the trend and develop and grow with the capital.
Frozen home, established in 2016, maintained an annual round of financing frequency, and obtained two rounds of investment from Mingyu venture capital and Hongtai fund in 2021. Sufficient funds have also greatly improved the company’s digital and intelligent storage capacity, and improved sales efficiency, procurement efficiency, storage efficiency, logistics efficiency and capital use efficiency.
The competition of capital makes the cold chain industry no longer “cold”.
Scramble for young people’s refrigerators
Seasonally speaking, ice cream and quick-frozen products have obvious complementarity between light and peak seasons. 60% – 70% of offline ice cream distributors in China sell ice cream in summer and dumplings in winter to share the cold chain.
This is also the reason why Zhong Xuegao crossed the border to become a rational image country. Most of the channels and marketing links of traditional quick-frozen food focus on offline supermarkets. Lixiang country starts with online as the sales channel position and reuses Zhong Xue’s highly efficient cold chain system.
Lin Sheng, founder of Zhong Xuegao, once said that extending from ice cream to quick-frozen food, the image country is mainly based on three points:
First, it is an inevitable option. Quick freezing and ice cream are complementary natural seasons. Ice cream will be purchased naturally in winter less than in summer. Quick frozen products can complement each other in the peak season of autumn and winter;
Second, channel compounding. Zhong Xuegao’s mature to C end cold chain system can be reused. In fact, frozen products and ice cream are not separated. Lixiang country can directly reuse the channels under Zhong Xue high line in the future;
Third, we are optimistic about the frozen food market. In Lin Sheng’s view, the frozen product market will expand greatly and the growth rate will be very high in the next 10 years.
“Lixiangguo took a step outside and ran to the freezer under the consumer’s refrigerator. Zhong Xuegao occupied one space, and lixiangguo took another space into the refrigerator.”
Lixiangguo cut into the frozen track with dumpling series. Over the past year, dozens of SKUs have been launched, such as small wonton, hand copying, fried dumplings, wonton, small crisp meat, instant bean pollen, seasoning and so on. According to public data, the overall performance of elephant country this year’s double 11 increased by 700%.
It is no longer the “old three” frozen products of traditional dumplings, steamed stuffed buns and glutinous rice balls. The hot little crispy meat stirred the frozen product market this year. During the double 11, the new small crisp meat of Lixiang country reached the top 2 of tmall meat products industry one hour after it was put on sale, and the repurchase rate reached more than 40%; The sales revenue of Meihao crispy meat will exceed 600 million yuan in 2020 and is expected to exceed 1 billion yuan this year.
Although the development of new brands is in full swing, the war of frozen products market has been opened for many years.
The traditional three frozen products have long been occupied by the three brands of “Sanquan”, “missing” and “Wanchai wharf”, and their market sales share has also exceeded 50%. However, in recent years, product homogenization is very serious, and the growth of old brands is weak.
According to the financial report of the third quarter of this year, the performance of weizhixiang, Sanquan, Anji and Haixin food decreased sharply or lost money. In addition, Sanquan and Anji have also successively announced price increases, and the price adjustment range of some quick-frozen foods is 3% – 10%.
According to the report of AI media consulting, in 2020, 46.8% of Chinese consumers purchased frozen food 1-2 times a month, and 36.45% of consumers purchased frozen food 3-4 times a month.
Consumers are no longer satisfied with simple meal replacement. They hope that convenience foods such as prefabricated dishes are more and more like fresh and ready-made. This also forces frozen products to upgrade in the fields of raw materials, production technology, taste, nutrition and health.
In the past 30 years, who has “cooked” ups and downs in the frozen products industry?
The history of frozen food in China can be traced back to around 1980. However, it really became a category since Chen Zemin invented China’s first quick-frozen dumpling in 1990.
In the 1990s, after giving up his job as vice president of Zhengzhou second hospital, Chen Zemin chose to go into business and set up a stall to sell ice cream.
Chen Zemin is a tossing man. He found that the Northeast likes to eat dumplings and will freeze the endless dumplings outdoors, so he had a whim: why can’t Tangyuan be made into frozen?
Frozen food is not simple. It involves refrigeration equipment, refrigeration technology, cold chain logistics and so on. After returning to Zhengzhou, Chen Zemin started machine research and development. Unexpectedly, he succeeded. He invented the first quick-frozen dumpling in China and applied for a patent. Chen Zemin took this innovative food to the supermarket and gradually opened the market for quick-frozen dumplings.
In 1992, Chen Zemin founded Sanquan food factory, and quick-frozen dumplings officially entered the production line for mass production. Less than a year after its establishment, Sanquan successively launched quick-frozen dumplings, quick-frozen zongzi and other products.
At that time, refrigerators had just begun to be popularized in China. The distribution was only “cold”, not to mention “chain”, and the distribution between cities was only cold warehouses and refrigerated trucks. “How to ensure that food is always kept in a low temperature environment”, which was also a problem perplexing Sanquan at first.
Sanquan first uses a third-party refrigerated truck for distribution. Although the temperature can be controlled, the long-distance transportation is greatly affected by the outdoor temperature and the transportation time is long. In order to save money, the vehicle does not have enough temperature control, and some products are thawed and deteriorated.
At the same time, Li Wei also encountered the problem of cold chain transportation. In 1997, Li Wei, 29, also planned to do Tangyuan business. At that time, Li Wei was the general distributor of he Luxue in Henan. The relatively perfect system (he Luxue equipped Li Wei with five freezing cars and thousands of cubic meters of cold storage) laid the foundation for him to enter the quick-frozen food industry later. Slowly, he also became a close friend with Chen Zemin’s son Chen Nan.
Even with many years of experience in the refrigeration industry, miss is also faced with food safety and quality problems brought by the cold chain. Previously, missing food was also found to have unqualified peroxide value due to substandard cold chain transportation, sales and storage.
The quick-frozen industry keeps up, but the logistics end and distribution end can’t keep up. In the early years, the lack of cold chain pulled the hind legs of quick-frozen products.
However, with the continuous iteration of cold chain technology and the upgrading of logistics and warehousing level, the cold chain market has entered a new era. Digital and Internet of things technologies have gradually replaced traditional refrigerated vehicles, and the sales channels have expanded from large supermarkets and community supermarkets close to home to online platforms.
Frozen products are typical when they come home. As a data-driven frozen food supply chain service platform, frozen food home provides one-stop service for catering businesses. At present, there are nearly 10000 active users placing orders, and the repurchase rate is stable at more than 85%.
Through the self-developed IT system, frozen products are collected at home to form an exclusive industry label database. Through the analysis of intelligent algorithm, the upstream and downstream accurate matching is realized, the sales cost of the industry is reduced, the labor is replaced by the system, and the original commodity circulation path is changed through its own warehouse distribution system.
The frozen products industry has experienced ups and downs for 30 years. It is worth mentioning that even the earliest Sanquan food has a total market value of 17 billion yuan.
Prefabricated dishes: fire from B end to C end
Also being blown into the wind are the prefabricated vegetable market.
According to statistics, by the end of April 2021, there were 71900 enterprises related to prefabricated vegetables in China, and 12500 were registered in 2020 alone.
Some analysts predict that the stock of China’s Prefabricated vegetable market is about 300 billion yuan. It is expected that China’s Prefabricated vegetable market can grow into a trillion yuan market in the next 6-7 years.
If takeout drives the demand for prefabricated dishes, the epidemic will push the prefabricated dishes from end B to end C.
Prefabricated dishes are first used in restaurants. Takeout requires an increase in the speed of meals. In addition, chain restaurants require standardization of dishes. Prefabricated dishes produced by the central kitchen become the best choice. However, under the epidemic, people are limited to eat out, and these prefabricated dishes are gradually entering consumers’ homes.
The discovery lion is one of them. In August 2020, the discovery lion was incorporated. Looking lion has launched spicy beef noodles, dongyingong seafood noodles, flower glue chicken with side stove hot-pot/" 22375 rel="nofollow" target="_self">hot pot, etc. you can enjoy a rich “big meal” only by heating at home for a few minutes.
Wang Biao, founder of discovery lion, once said publicly that the time to enter the prefabricated dishes is just right. People’s living habits and consumer psychology have changed greatly, which is a great change compared with the situation in their early years.
Xinliangji CMO Gao Yang also said that in the future prefabricated food market, the boundary between b-end and C-end business will become more and more blurred. It can be said that the relationship between the two is that the C-end empowers the b-end, better drives the efficiency and development of the enterprise supply chain, and improves the gross profit under the role of brand power.
Prefabricated dishes are not only the starting point of new brands, but also provide new opportunities for old brands.
After the advocacy of “no need to return home during the Spring Festival” was issued in many places across the country, home delicacy has become the “nostalgia” of many travelers. In order to eat the taste in memory, online shopping has become the most convenient choice for consumers. Time honored brands have also entered platforms such as Taobao, Jingdong and pinduoduo.
So far, the 86 year old Guangzhou Restaurant tmall flagship store has more than 1.6 million fans. Quick frozen morning tea snacks such as barbecued bun, quicksand bun and shrimp dumpling have become a hot sale in the store. “Delicious and cost-effective” is the user’s most evaluation of this category. Many users said that they can enjoy dishes of the same quality as those in Guangzhou restaurants at home.
In addition, time-honored brands such as Beijing Quanjude and Shanghai old hotels have launched prefabricated dishes. According to tmall’s data in 2020, the sales volume of prefabricated vegetables increased by 111% year-on-year. The one-man food economy and lazy economy under generation Z are promoting the demand for frozen products such as prefabricated vegetables to show a rapid growth trend.
In the 1970s, the concept of cold chain had not yet risen, and refrigeration and refrigeration technology had just been popularized. During this period, China first introduced the spiral quick freezing device, which also means that China’s quick freezing industry has entered the embryonic stage;
In the 1980s, China independently developed fluidized bed quick freezing device, flat plate freezing machine and other technologies, and first achieved a breakthrough from 0 to 1 in the problem of quick freezing;
Since the 1990s, domestic domestic quick-frozen enterprises have been established one after another, and China’s quick-frozen industry has also entered the introduction period.
In addition to Sanquan food and missing food, Kedi food, Anji food and Haixin food also entered the market. Quick frozen dumplings and dumplings have become common frozen food in families.
Since 2010, the diversification of products, channels and technologies has promoted the growth of China’s quick freezing industry. hot-pot/" 22375 rel="nofollow" target="_self">Hot pot, Malatang, Kanto cooking and other catering categories sell well, greatly increasing the demand for quick-frozen food.
CICC predicts that China’s frozen food industry will still be in a growth period in the next 10 years, and the CAGR is expected to be about 10%.
The target population is wide, and the plate of quick-frozen food is large enough. Users of large chain restaurants (big b-end), small restaurants (small b-end) and C-end all put forward higher demands for the development of quick freezing industry.
Limited by rent and labor cost, small B users pay more attention to cost performance and require cost reduction and efficiency increase; Large b-end customers require consistency of dishes and strict control of product quality, so they pay more attention to stable and customizable quality; The demands of C-end users are convenient and easy to operate, rich categories and good taste.
The competition between new and old brands continues, and there are infinite possibilities behind the frozen product market.
Author: Song Bingbing; Source: tidesight (ID: tidesight), reprint authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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