This year’s Mid-Autumn Festival falls on September 17th, and typically around this time is when mooncake sales peak. However, compared to previous years, the mooncake market in mainland China is unusually quiet this year, with sales sharply declining. Despite lowering prices, businesses are struggling to reverse the downward trend, with some contract factories even implementing a 3-day work, 1-day off schedule.
On September 2nd, Ling Feng (pseudonym), sales manager of a mooncake contract factory in Shenzhen, told “Time Weekly,” “In previous years, in the two weeks leading up to the festival, we were as busy as wound-up springs, with booming business that left us breathless.” However, this year, the number of orders has significantly decreased, leading to a major drop in workload intensity.
Ling Feng’s factory contracts mooncake production for several upscale hotels in Shenzhen, and this year’s market conditions have left him at a loss.
Li Xia (pseudonym), a food and beverage manager at an upscale hotel, shared, “Last year, we sold thirteen thousand boxes of mooncakes, but this year even achieving a target of ten thousand boxes seems challenging. In the past, during a weekend morning tea session, we could sell 100 to 200 boxes of mooncakes, but this year selling just 10 boxes is considered good.”
She lamented that the average per capita spending of customers having morning tea has dropped from last year’s 300 yuan to approximately 160 yuan this year. “Previously, customers would order shrimp dumplings, siu mai, and spare ribs for morning tea, but this year they are opting for barbecue pork buns, custard buns, items with a high price-performance ratio.”
The changes in hotel sales directly impact contract factories.
Zhang Zha (pseudonym), sales manager of a large mooncake contract factory in Guangzhou serving dozens of restaurants in the province, mentioned, “In previous years, my clients would place orders gradually in the two months leading up to Mid-Autumn Festival. But this year, all restaurants are being cautious, and it wasn’t until a month before Mid-Autumn Festival that they began placing concentrated orders, which are also fewer than previous years.”
“The overall orders from old clients have declined by 20%, and the sales pace has slowed. Normally at this time of the year, every restaurant would have sold out of one batch and started adding more orders, but this year, they are barely getting rid of their existing inventory,” Zhang Zha said. “Due to the lack of orders, some manufacturers are now operating on a 3-days-on, 1-day-off basis, shipping out the next day.”
To combat the market downturn, many businesses launched promotional campaigns a month early. Li Xia’s hotel introduced a 25% discount a month before Mid-Autumn Festival, and popular mooncake brand Maxim’s has offered a 10% discount on some products this year. Additionally, renowned mooncake brands in Guangzhou like Jiayi, Ronghua, and Jinjiu have initiated promotional activities ranging from 8% to 9% discount ahead of schedule compared to previous years.
Data from the China Bakery Products Sugar Products Industry Association shows that this year’s mainstream mooncake gift boxes are more affordable, with the most concentrated price range for consumers falling between 70 to 220 yuan, a significant decrease from last year’s range of 80 to 280 yuan.
CCTV financial reports indicate that this year, healthy and minimalist-style mooncakes have become consumers’ favorites. From the packaging perspective, boxed mooncakes now feature fewer compartments and decorations, emphasizing practicality. In addition to slimming down the packaging, consumers are paying more attention to health factors when choosing mooncakes.
Amid the “low sugar, low fat” trend, traditional flavors like double egg yolks white lotus seed paste and five nuts are gradually losing their appeal among younger consumers.
Reports from Securities Times Online suggest that various signs indicate that in the first half of 2024, the Chinese baking industry is facing severe challenges in development due to downward economic pressures, high costs, weak consumption, and other unfavorable factors.