The mooncake market has been moving soon, the price of brand cakes has shown signs of increasing slightly
According to data provided by Data Factory, the production of fresh cakes such as baked goods, flexible cakes, cakes, rice cakes, etc. in the first and second quarters of 2023 (x tons) is decreasing significantly compared to the quarters of 2022. However, in the third quarter of this year, the production of fresh cakes is forecast to increase positively thanks to the effect of the Mid-Autumn Festival.
Similar to 2022, the production of fresh cakes in the third quarter of 2022 (x tons) is twice the output in the second quarter (x tons), so this year, we have every right to expect an increase growth of the bakery industry in the next quarter.
The mooncake market has been moving soon, the price of brand cakes has shown signs of increasing slightly
According to the calendar, this year’s Mid-Autumn Festival falls at the end of September of the solar calendar, so the units have started implementing the sale plan early. The purpose is both to increase brand recognition for customers, and at the same time to serve the needs of giving and giving gifts on the upcoming 2/9 occasion and the wholesale buying needs of businesses.
A whole month ago, the mooncake market was very busy. As noted, a series of mooncake brands such as Kinh Do, Bibica, Bao Minh, Huu Nghi, … have been sold everywhere. On social networks, e-commerce floors, mooncakes are also distribution channels that have been bustling since the beginning of August.
The changing trend of consuming mooncake of users is also a problem that manufacturers need to pay attention to. Regarding the above issue, a representative of KIDO Group said that the needs of consumers are increasingly modern and dynamic, so the trend of enjoying moon cakes is also constantly updated. Customers are not only interested in product design, packaging, and quality, but also want to have new experiences.
Therefore, to meet this demand, manufacturers all focus on renewing packaging and designs, especially for high-end product lines. In addition to the line of baked goods, flexible cakes with traditional fillings such as green beans, coconut milk, lotus seeds, mixed, etc., there are also cakes with abalone, salmon, tiramisu, coffee, crab bowl, blueberries,etc.
This year’s mooncake market is expected to be very competitive by familiar brands. The market began to appear more new names produced by FnB brands such as: mooncakes of Highlands, Cong Ca, The Coffee House, … and this year’s ‘handmade’ cakes also have care, invest more in both form and quality.
Besides, it is worth noting that this year most of the mooncake brands increased their prices compared to the previous season. As with Kinh Do brand, 4-egg XO roasted chicken pies increased from VND 390,000/piece to VND 410,000; type 2 eggs increased from 137,000 VND to 139,000 VND/piece; Char siu ham increased from 122,000 VND to 124,000 VND/piece…
The mooncake manufacturers in the industry said that this year, the price of cakes increased by 5-10% compared to the previous year. The reason is explained by the price of flour and paper boxes increased sharply compared to last year’s Mid-Autumn Festival.
Specifically, a media representative of Bibica Joint Stock Company also said that in the Mid-Autumn Festival of 2023, the price of input materials for production had an increase such as: flour increased by 33%, paper boxes increased by 11%, .. Therefore, the price of cakes is also slightly increased by 5-10% depending on the type of cake.
Large enterprises in the industry massively increase the output of mooncakes
According to Data Factory data, the number of enterprises producing cakes from flour in Vietnam, in 2021 has reached x enterprises, a significant increase compared to 2020 (affected by the Covid pandemic). The number of employees in the industry in 2021 also increased slightly compared to 2020, marking a positive growth for the following years.
The net revenue of the production of flour-based cakes in 2021 will reach more than x trillion, a strong increase (over 30%) compared to the same period in 2020 (just over x trillion) and will continue to increase significantly in the following years . From there, bringing more than x billion (in 2021) to the industry of flour-based cakes, an increase of nearly x billion compared to 2020 and continued positive growth in 2022 and the first quarters of 2023.
These are positive numbers for businesses in the industry to focus on developing production and promoting confectionery products, especially mooncakes in the third quarter of this year.
This year’s Mid-Autumn Festival, many businesses are actively promoting production to increase the output of moon cakes. For example, KIDO Group plans to increase its production of mooncakes by 50% compared to 2022, from 300 to 450 tons. Dai Phat brand also increased production, expected to supply to the market 3.3 million moon cakes of all kinds.
Similarly, Bibica this year also increased production by 20% compared to last year, is expected to market about 600 tons of moon cakes. Or at ABC Bakery, Mr. Kao Sieu Luc – General Director said that this year’s Mid-Autumn Festival, the unit has produced more than 2 million cakes according to pre-orders, an increase of about 200,000 units compared to the same period last year.
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The purchasing power of the mooncake industry is still a mystery
Cake consumption is likely to decline in this year’s Mid-Autumn Festival
In fact, the market for mooncake starting before the full moon of July is not a strange thing. During this time, the main customers will be customers who buy for business, as gifts, or businesses that buy large quantities for employees. However, this year, because workers take a lot of leave, the demand for moon cakes of enterprises tends to decrease compared to every year.
At the same time, for retail customers, people’s incomes all decrease after a difficult economic period, families tend to consume “austerity”. Therefore, moon cakes are not essential consumer goods, people will not give priority to buying them.
Enterprises in the mooncake industry should continue to produce in moderation and listen to the market
Ms. Nguyen Thi Thu Thuy, director of Dong Khanh Food and Food Company Limited – a unit that produces Dong Khanh mooncakes with the Golden Rice brand, said that the company has not yet dared to produce because it is worried about purchasing power. slow. In which, the number of corporate customers every year often book early, but this year, there are signs of a slight decrease.
Therefore, it can be predicted that this number of visitors may be only half of every year. “We are producing in moderation to listen to the market, where we need to produce. In addition, this year will apply many preferential policies for agents to easily push the cake …” – Ms. Thuy shared.
Currently, many businesses in the industry are also implementing an active strategy of offering products to agencies, enterprises and units with attractive discounts and some other incentives. A representative of an enterprise in the industry said that corporate customers often book early every year, but this year, despite sending information to offer, many units have not responded.
At the same time, there are customers who have reduced the number of purchases up to 70% compared to last year. Even many partners who previously ordered cakes have stopped working this year, so the moon cake business also lost a number of old customers.
However, some businesses still have positive early signs of business, as according to information from Asia Confectionery Joint Stock Company (ABC Bakery), the unit has now received 17 orders from the company with a total of more than 2 million cakes. Some domestic units that used to order mooncake have now ceased operations but have new customers – other foreign-invested companies.
As Mondelez Kinh Do, on August 8 last, information about the mooncake market 2023, Mr. Nguyen Dinh Chung – national sales director of Mondelez Kinh Do said, up to now, the consumption situation of wholesalers and customers. Pretty good business customers. This is also a group of customers who often place orders early and account for 80% of the success of a mid-autumn business.
“On the occasion of holding a customer conference with nearly 500 distributors, our unit recorded many corporate customers who spend their budgets to give moon cakes to officials and employees. Most importantly, manufacturers. there are many price segments to meet demand”.
Therefore, businesses in the industry should continue to produce in moderation to listen to the market, promptly respond to the unexpected increase and decrease in the industry’s consumption in this year’s Mid-Autumn Festival. In addition, businesses in the mooncake industry also need to focus on finding wholesale customers, offering incentives and reasonable care policies to retain old customers and reach new target customers. during the Mid-Autumn Festival this year.
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