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FuPan 2021 compound condiment track: entering the era of 100 billion, what trends deserve attention under the demand segmentation?

in the condiment industry, it is relatively easy to distribute products to the retail terminal, but the difficulty is to realize dynamic sales. Products must have unique selling points to compete for consumption.
In 2021, the “lazy” and “Homestead” economy continued to heat up, and people’s return to the family cooking scene promoted the compound seasoning to the fast lane.
China Commercial Industry Research Institute predicts that the scale of China’s composite seasoning market will reach 158.8 billion yuan in 2021, and the market is expanding continuously; In addition, frost Sullivan data show that it is expected to reach 400 billion yuan in 2030, 2.7 times the current level.
Similar to the Growth Logic of many consumer goods, thanks to the improvement of people’s quality of life and consumption upgrading, compound condiments have entered the era of 100 billion. At the same time, they are also facing the situation of intensified market competition.
According to Tianyan survey data, 36251 new condiment enterprises were registered in one year from January 2021 to January 2022. Among them, Xibao Research Institute, established in early 2021, has won three rounds of financing in one year, which is favored by well-known investment institutions such as Meihua venture capital and Buer capital; In addition, new brands that have been established for more than a year also announced the completion of the third round of financing in November last year, with a financing amount of more than 100 million; Last month, chuanwazi food announced that it had completed nearly 300 million yuan of round a financing.
In terms of overall investment and financing, according to tianyancha data, condiment related enterprises raised more than 70 times in 2021, of which more than 10 compound condiment related enterprises received financing.
As the “sweet pastry” favored by capital, the compound condiment industry has not only attracted many new players competing to enter the game, but also increased the weight of traditional condiment forces such as Haitian, Qianhe, Chubang and Li Jinji, trying to take a share in the “lazy condiment” track.
According to the reporter of red bowl news agency, the current competition pattern of domestic composite condiment track is mainly divided into two parts: the “old brand” strong team represented by Yihai international and Tianwei food, and the head enterprises of traditional condiments such as Haitian flavor industry, Li Jinji and Qianhe flavor industry, which have just laid out the business of hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning and Chinese composite condiment;
And new entrants to the industry with trendy, creative and healthy compound condiments, such as adding some flavor, Xibao research, little bear driving, taste and so on.
So far, the condiment track is quite popular.
Even if the track is gradually crowded, compared with the market share of 73%, 66% and 59% of composite condiments in the United States, Japan and South Korea in 2020, the penetration rate of 26% of composite condiments in China still has a lot of room to rise.
What changes will the new and old brands encounter in 2021 bring to the industry? What are the opportunities for the compound condiment track in 2022?
Volume and price rise to promote the expansion of compound condiment industry
“Make delicious easier”.
This is the evaluation of Yihai international on composite condiments, and also shows the underlying reasons for the emergence of this category in recent years.
The so-called compound condiment refers to the condiment mixed with two or more condiments and further processed to make it have special flavor, including common chicken essence, hot-pot/" 22375 rel="nofollow" target="_self">hot pot bottom, Chinese compound condiment, etc. Compared with single condiment, composite condiment uses more raw materials and has a higher degree of standardization, which greatly improves the cooking efficiency and meets the needs of emerging catering and families.
C-end middle-aged and young people pursue taste and cooking efficiency, and promote the penetration of composite seasoning.
Looking back on 2021, under the normalization of the epidemic, “home economy” has become a key word throughout the year, supporting the combustion of family kitchen related segments such as “small household appliances” and “frozen food”. We have noticed that the catering consumption of young people began to move back to the family cooking scene from eating out.
A survey report released by DT finance in June 2021 shows that nearly 80% of young people have cooking habits: among them, the most people cook several times a week, accounting for 36.6%, 12.7% cook every day, and 26.9% cook several times a month. Young people who never cook are in the minority.
“Willing but disabled hands” is a true portrayal of young people cooking at present. From the perspective of family, compared with the older generation, the huge single population, smaller and smaller family units, fast pace of life and other factors jointly promote the sharp increase in consumers’ demand for convenient, scene oriented, time-saving and labor-saving seasoning products with both tastes. Moreover, with the evolution of consumption concept from “full” to “good”, the per capita expenditure on seasoning is also increasing year by year.
At the same time, it can not be ignored that in the process of promoting the scale expansion of the chain catering industry with the increase of urbanization rate, the “de Chef” and “standardization” brought by the b-end catering chain trend are also important factors driving the expansion of the composite condiment industry.
When the process of catering chain is accelerated and the labor cost is increased, the motivation of b-end restaurant to use composite seasoning is strengthened in order to reduce the operating cost.
It can be seen that compound condiment is taking over the traditional single condiment and becoming the new favorite of the new generation of consumers and chain restaurants.
Old brand: “hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning + Chinese compound seasoning” brings new growth
In 2021, “price increase” is a well-known keyword in the condiment industry.
In October last year, Haitian flavor industry announced that in view of the continuous rise in costs, the ex factory prices of some products such as soy sauce and oyster sauce were raised; Shortly thereafter, Hengshun vinegar, Xuetian salt, Li Jinji and Zhongjing food all announced price adjustments for some of their condiment products, ranging from 3% to 7%.
Behind this, it reflects that the overall performance of condiment enterprises is under pressure due to the cost pressure such as the rise in the price of upstream raw materials. Red bowl sorted out relevant financial report data and found that Qianhe flavor industry and Hengshun vinegar industry both faced downward pressure on net profit last year, and the net profit growth of Haitian flavor industry also reached a new low since listing; According to tianyancha data, the penetration rate of traditional condiments such as soy sauce and vinegar has been close to 100%, and the growth rate has slowed down; Monosodium glutamate, salt, chicken essence and chicken powder have entered the late stage of the product life cycle.
Therefore, compound condiments are regarded as the consumption upgrading direction of the condiment industry, and become a key step for old enterprises to seek the second growth curve after pressure.
Among the compound condiments, Chinese compound condiments and hot-pot/" 22375 rel="nofollow" target="_self">hot pot condiments grew the fastest. According to public data, from 2015 to 2021, the compound growth rates of market scale of the two products were 16.9% and 15% respectively, ranking among the top two sub categories, which has become the focus of old condiment enterprises in recent years.
Thanks to the continuous increase of chain hotpot brands in recent years, Yihai International’s business in “hotpot +” seasoning is going well. By the first half of 2020, its third-party sales of hotpot seasoning products increased by 89.5% year-on-year. At the same time, Yihai international also began to try to enter other segments of condiments from a single hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning supplier to tap new incremental markets.
In 2017, Yihai international stepped up the pace of “fishing at the bottom of the sea”, integrated its Chinese compound condiment business, and created the brand of “chopstick hand kitchen”. At the beginning of its establishment, the brand has established a convenient and fast market positioning. With the brand concept of “chopsticks cooking faster than takeout”, it has successively developed a series of composite seasoning products of crayfish and pickled fish around the convenient and delicious consumption needs of young people.
Public data show that from 2013 to 2019, the company’s revenue of Chinese compound seasoning increased from 41 million yuan to 395 million yuan, with an annual compound growth rate of about 45.9%, ranking first in the market segment.
In 2021, the chopsticks kitchen launched the “seven course” series of Chinese compound seasoning products, including domineering pepper chicken, boiled meat slices, fish flavored shredded meat, Mapo Tofu, kung pao chicken and other classic Sichuan dishes, focusing on “one bag at a time, no other ingredients, and making a classic Sichuan dish in a few minutes”. So far, Yihai international has fully blossomed in the Chinese compound seasoning market, and its product line has been expanded to various categories such as condiment sauce.
After 2020, the traditional condiment leader smelling business opportunities, relying on the two advantages of strong supply chain management and perfect sales channels, began to cut into the compound condiment track from “hot-pot/" 22375 rel="nofollow" target="_self">hot pot +” and focus on Chinese compound condiments.
“Jiamao” Haitian flavor industry launched four hot-pot/" 22375 rel="nofollow" target="_self">hot pot sauces in 2020, indicating its ambition to enter the seasoning market. Since then, it successively launched nine different composite seasoning products in 2021; Veteran enterprises such as Li Jinji, a century old soy sauce brand, and Qianhe flavor industry, a high-end soy sauce brand, have strongly entered the market and launched a series of composite condiments catering to the preferences of young cooks, such as hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasonings and Chinese composite condiments.
New player: “trendy, salty and healthy” breakthrough track
“Sharp at both ends and empty in the middle” is the competitive situation at this stage. Zhu danpeng pointed out, “either big brands like Yihai international, or small brands like small brands in Sichuan and Chongqing. There are basically not many medium and large enterprises in the middle. This has also brought dividends of rapid development to many small and medium-sized enterprises.”
On the one hand, traditional seasoning giants, relying on supply chain capabilities and strong dealer channels, focus on hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasonings and Chinese compound seasonings to play an advantage; At the same time, hongwanshe learned that consumers’ awareness of the leading brands of traditional condiments such as Haitian flavor industry and Li Jinji still stays in the main business of their brands such as soy sauce and oyster sauce. It is difficult to think of these brands at the first time when buying seasoning products such as hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning and Chinese compound seasoning, and the consumption habits need to be cultivated.
Some industry insiders pointed out that in the condiment industry, it is relatively easy to shop products to the retail terminal, but the difficulty is to realize dynamic sales. Products must have unique selling points to compete with consumers.
1) Continuous innovation is the key to breakthrough
In November 2021, less than a year after its establishment, Xibao research announced that it had completed tens of millions of yuan of pre-A financing, which was recognized by the young consumer market and capital with its original trendy condiments.
Its investor, Buer capital, once said, “The current condiment market still focuses on the business model of ‘national large single product + channel flow shipment’, with homogeneous brand and insufficient product innovation ability, which can not meet the dietary needs of the new generation of young people for exquisite life. Xibao’s founding team pursues creative flavor, can constantly study the dietary preferences and high-quality ingredients of users in different regions, and has strong product originality ability. ”
According to public information, in July 2021, the brand “MIXMASTER original cooking sauce” series was launched on tmall. In August, nearly 100000 bottles of chili sauce were sold in a single month, ranking first in tmall’s chili sauce category; The trendy seasoning led by bowl chicken seasoning went online for 30 days, with a monthly sales of more than 50000, and entered the top 3 category of tmall hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning.
Zhu Liang, co-founder of Xibao manufacturing research, once pointed out in an interview with red bowl that “creative flavor is always the best moat of the brand”.
2) “Fresh” flavor deserves attention
At present, most of the dishes and seasonings on the market are based on the “spicy” of Sichuan cuisine and hot-pot/" 22375 rel="nofollow" target="_self">hot pot. According to AI media consulting data, nearly 70% of users say that they buy salty and delicious seasonings the most frequently; The purchase frequency of onion and pepper flavoring was the second.
Chuanwazi, a Sichuan Chongqing brand, announced the completion of 300 million round a financing at the end of 2021, also taking “creating surprises for consumers” as the underlying logic; At the same time, the brand also pays attention to that consumers’ demand for “fresh and spicy” at the catering end is higher than the traditional “spicy”.
Therefore, chuanwazi took the lead in putting forward the product concept of “fresh” sauce ready to eat, extended the popular single product “pepper sauce” as the core, cut into the “one person eating” scenario of young consumers, personalized and diversified needs, and launched innovative new products such as preserved egg pepper sauce, Beef Pepper Sauce and garlic fresh pepper sauce in terms of flavor, so as to complete the brand renewal;
The brand of plant seasoning, pine fresh, pays attention to the three pain points of consumers “like salty and fresh, but dare not eat”, “worry about excessive sodium intake” and “strong demand for Xiaobai cooking”. Relying on natural raw materials, it creatively develops matsutake seasoning products to replace traditional chicken essence. At present, the annual repurchase rate of products has reached 50% and the private repurchase rate has reached 300%.
3) The health trend of “0 addition”, “salt reduction” and “sugar reduction” does not decrease
Summer Chen, an analyst at IMINT, once pointed out that “for food, people pay more attention to nutrition.” According to Mintel, more than half of urban consumers are already trying to limit their intake of chicken essence and monosodium glutamate.
Yi Zihan, founder of pine fresh brand, also proposed in an interview with red bowl that consumers’ demand for “fresh” flavor is still high, but “we are worried about our health and dare not buy chicken essence”. Based on this insight into the box fee, the pine fresh team developed the Tricholoma matsutake seasoning product, which was fresh with natural plants, and achieved “0 addition” and “the sodium content was 30% lower than that of chicken essence”;
Xibao manufacturing research, a new brand, was keenly aware of the trend of “health” at the beginning of its establishment, focusing on low sodium salt and good ingredients, emphasizing the underlying logic and health concept of “reducing salt and low oil”, meeting the consumption needs of young consumers who pay more attention to nature, health, environmental protection and nutrition.
While continuing to make blood, these online “dark horses” also recognize the importance of supplementing offline channels and pay attention to the construction and maintenance of offline physical retail channels. In an interview with red bowl, songxianxian and Xibao said that in addition to continuing to develop online channels, they had begun to lay a national KA business supermarket channel.
What type of enterprises can run far on the compound condiment track in the future?
“On the catering side, companies with significant cost advantages, strong R & D ability and rapid response to customer needs are easier to win. On the family side, companies with strong R & D ability, brand awareness and channel control ability are easier to win.” Liu Guangyi, food and beverage analyst of Minsheng securities.
Original title: looking back at the 2021 compound condiment track: entering the era of 100 billion, the encounter between new and old brands starts. Under the demand segmentation, what trends deserve attention? Author: Li Yang; Source: hongwanshe (ID: hongwanshe 2020), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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