Stuttgart, September 23, 2019 – Nanjing Stuttgart Joint Exhibition Ltd. and Shanghai Global Exhibition Co., Ltd. announced here on Monday at a press conference at Messe Stuttgart, the International Bake & Shop Expo (“the trade show”) will be held in Nanjing, China on 12 to 14 October 2020.
The trade show was designed on the backdrop of the China's bakery market’s whopping growth, a quantum leap which translates into immense business opportunities for the global bakery industry across the entire value chain.
A Must-go Event for Global Bakeries
David Wang, President of Shanghai Global Exhibition Co., Ltd. said: “The plan to hold the International Bake & Shop Expo in Nanjing and to introduce südback to China, is a significant step for the bakery industry, through which we could build a bridge between China and Europe. European bakery market participants will get a platform full of opportunities explore this vast new market, while their Chinese counterparts can learn about products, technology, marketing from Europeans.”
The trade show will be held by Nanjing Stuttgart and Shanghai Global. By banking on südback's industry resources and 40+ years exhibition experience, the Expo is calling on segment market players in the rapidly growing Chinese bakery industry and gathering various bakery brands (bakery franchisees and supporting product suppliers) at home and abroad. The exhibitors profile range from baking equipment and materials, franchising and management, warehouse logistics to information services, providing a one-stop purchase platform for bakery practitioners.
Andreas Wiesinger, Vice President and Member of Board Management, Messe Stuttgart, said südback plays an important role in the baking and confectioner industry in Europe. “We hope this cooperation between Nanjing Stuttgart and Shanghai Global could be a springboard for European baking enterprises to enter the Chinese market,” added Wiesinger.
Something is baking in China
By 2018, the total size of China's bakery market is estimated to be valued at $30 billion, making it the world’s second largest bakery market, trailing the United States.
In contrast to Europe and America where people buy and consume bakery products as staple food, in China, bread, baguettes, croissants, cookies and cakes are rather popular and served during breakfast, afternoon tea, and as a snacks in China, triggered by the accelerating pace of life.
Amid the rapid economic development of the Chinese economy, along with the “Westernization” of eating habits, China’s baking market has grown constantly since 2009. The organizer of the trade show revealed, that China’s bakery industry recorded from 2012 to 2017 12.7% growth p. a. Personalized nutrition is becoming popular, too, amid a rising Chinese middle-income class.
In recent years, "consumption upgrading" has spread across all economic sectors, with the baking industry being a prominent example. According to the National Bureau of Statistics of China, China's per capita disposable income rose by a staggering 8.7% year-on-year. China’s per capita consumption expenditure in the same year increased by 8.4% over 2017.
The improvement of people's living standards pushes people to enjoy a better life, bakery is one part of them. Especially the trend of western-style and healthy diet of young people, which promotes the rapid development of Chinese bakery market.
Meituan Dianping, an e-commerce platform which has attracted more than 400 million users, said in a report published in 2018 which shows that 37.5% of bakery product consumers were born after 1980, and 51.8% were born after 1990.
These statistics demonstrate that young consumers are keen on adding fresh and healthy baking products to their menu, fueling the demand for new bakery products.
An Emerging Blue Ocean
Nevertheless, while the overall consumption of baking products in China is huge, the per capita consumption of croissants, baguettes, pretzels, cakes and tarts remains relatively modest. In addition, the bakery market is considerably fragmented, which means huge “blue ocean” potential in China’s bakery industry.
As the report pointed out that the per capita consumption of baked food in mainland China in 2017 was 6.9 kilograms per year. This is below the world average of 18.7 kilograms. In contrast, the figure in the United Kingdom and the United States stood in the same year at 48.2 kilograms per person and at 40.2 kilograms per person respectively, 6-7 times higher than that of China.
In comparison to Japan, China-Hong Kong, and Singapore – all three markets share similar dietary habits - Mainland China's per capita consumption of bakery products has the potential to double or even to triple. Euromonitor’s baking industry statistics for 2016 show that more than 70% of Chinese baking pastries are sold through handmade bakeries, fresh from the oven and unpackaged. Most of these pastries are of private labels.
In contrast, Japan mainly sold packaged bakery products during the same period. The three major brands in Nippon control a majority market share of 60%. This indicates that there is ample growth potential for the Chinese bakery industry. Nevertheless market participants have to remove a number of roadblocks, too. For instance, there is a need to upgrade baking technology (through purchasing state-of-the-art baking equipment), bakery operations and management across China.
In recent years, foreign bakery chains, such as Bread Talk and Paris Baguette, have been developing steady. Chinese local brands, such as Holiland and Wedome, have also been expanding rapidly, giving proof of the industry’s bloom.
These developments encompass positive spillover effects on the entire F&B industry. NAYUKI started in 2015, selling fruit tea and bread. Its brand valuation had reached $860 million in the spring of 2018. HEY TEA which kicked off in 2012 reached a brand valuation of $1.2 billion in July 2019.
No doubt: International Bake & Shop Expo in Nanjing, China, on 12 - 14 October 2020, is a must-go event for the Chinese and global bakery family.
“We are looking forward to building a bridge of trade and communication between bakers by the Expo,” said Messe Stuttgart’s Wiesinger.
About Nanjing Stuttgart Joint Exhibition Ltd.
Messe Nanjing is the Joint Venture between Landesmesse Stuttgart GmbH and Nanjing Hexi Convention and Exhibition Co., Ltd. For 8 years, it's the only international exhibition company in Nanjing organizing a variety of exhibitions, events and conferences across a range of industries including logistics, tourism & caravan, industrial, home furniture & cooking, education and innovation since 2012. Also the management of Nanjing International Expo Centre is done by Messe Nanjing.
About Shanghai Global Exhibition Co.,Ltd.
Shanghai Global Exhibition Corporation Limited was founded in 2006. The group currently organizes and participates in exhibitions and conferences held in the Middle East and countries in Africa such as the United Arab Emirates, Saudi Arabia, and Egypt throughout the year. Based on its expertise, Shanghai Global Exhibition Corporation Limited has ample resources across various industries such as bakery, food, new energy and construction materials, among others.