Baked food is made of flour, yeast, salt, granulated sugar and water as basic raw materials, adding appropriate amount of oil, dairy, eggs and other additives, and then through dough, molding, baking and other processes.

Baked food raw materials refer to various raw and auxiliary materials such as sugar, grease, flour, butter, jam, chocolate, flavors and spices, yeast and other raw materials needed by baked food manufacturers to make bread, cakes, pastries, traditional Chinese snacks and other baked foods.

　　Development of Baking Food Raw Material Industry in China

The development of the baked food raw material industry and the baked food industry complement each other, on the one hand, the two are located in the same industrial chain upstream and downstream, the development of the baked food raw material industry depends on the baked food industry.

During the "Twelfth Five-Year Plan" period, my country's food industry continued to maintain stable and healthy growth on the basis of meeting market demand, transforming growth patterns, and optimizing industrial upgrading. In 2014, the main business income of food industry enterprises above designated size in my country was 10.89 trillion yuan, an increase of 72.58 from 6.31 trillion yuan in 2010, and a compound growth rate of 14.62.

The proportion of the total output value of the food industry in the total industrial output value of the country increased from 8.8 per cent in 2010 to 10.0 per cent in 2014, further enhancing the status of the food industry as a pillar industry in the national economy. As an important branch of the food industry, the total output of major products (including cakes/bread, biscuits, candy chocolate, frozen drinks, instant noodles and preserves) in the domestic bakery and sugar products industry in 2016 was about 35.2725 million tons, up 9.43 percent from the same period last year. Main business income was 738.927 billion yuan, up 8.66 percent from the same period last year.

The main business income of enterprises above designated size in my country's baked food industry increased from 166.082 billion yuan in 2011 to 265.478 billion yuan in 2015, and the proportion of main business income in the food manufacturing industry increased from 11.88 in 2011 to 12.63 in 2015; Total profits increased from 13.83 billion yuan in 2011 to 23.274 billion yuan in 2015, with a compound annual growth rate of 13.90.

Main Business Income of Enterprises Above Designated Size in China's Bakery Industry, 2011-2015

　　Data source: Prospective Industry Research Institute.

　Baking industry market size

According to the "Forecast and Analysis Report on Brand Competition and Consumer Demand Investment in Baked Food Industry" released by the Prospective Industry Research Institute, the market size of the baking industry increased from 72.9 billion yuan to 164.8 billion yuan from 2009 to 2016, with CAGR reaching 12.4 percent. The bread industry also maintained a rapid growth trend, with the market size increasing from 13.1 billion yuan to 28.6 billion yuan from 2009 to 2016, with a CAGR of 11.8. Growth in the bakery and bread industries has slowed since 2015, but we expect growth of close to 10% over the next five years.

Baking industry market size

　　Data source: public data collation

　　Sub-industry pastry, bread manufacturing

The pastry and bread manufacturing industry is an important sub-industry of the baked goods manufacturing industry. According to statistics from the National Bureau of Statistics, the number of entrepreneurs above designated size in the pastry and bread manufacturing industry increased from 430 in 2011 to 703 at the end of October 2015, achieving a 63% increase; total assets increased from 27.4 billion yuan in 2011 to 2015 At the end of October, 64.9 billion yuan, achieving a 137 percent growth.　

　　Number of entrepreneurs and asset size in the pastry and bread manufacturing industries

　Data source: Prospective Industry Research Institute.

According to the data of the Prospective Industry Research Institute, the number of enterprises above designated size in the baked food manufacturing industry increased from 1,036 at the end of 2011 to 1,408 at the end of October 2015, achieving a 36% increase. The total assets of enterprises above designated size increased from 83.7 billion yuan at the end of 2011 to 150.4 billion yuan at the end of October 2015, achieving an 80% growth.

Number of entrepreneurs and asset size in the baked goods industry

　　Data source: Prospective Industry Research Institute.

　　In terms of per capita consumption, China's baking market has great potential.

In 2017, my country's per capita consumption of baked goods was only 6.9kg, which is far lower than the per capita consumption of Western developed countries and also lower than the world average of 18.7kg/person. Compared with Japan (18.6kg/person), Hong Kong (12.4kg/person) and Singapore (10.1kg/person) with similar eating habits, China's per capita consumption still has room to double or even triple.

In recent years, with young consumers affected by foreign eating habits and the acceleration of the pace of urban life, the per capita consumption of baked goods in China has maintained a high single-digit growth, from 4kg/person in 2009 to 6.9kg/person in 2017, with a CAGR of 7.1. China's baked goods industry still has great development potential.

With the continuous increase of per capita disposable income and food consumption expenditure in China, bakery food enterprises continue to optimize and improve in terms of category, quality, safety, packaging, taste and other aspects to meet the diversified consumption needs of people's daily diet.