(Yicai Global) June 26 -- China’s market for zongzi, or glutinous rice stuffed with different fillings and wrapped in bamboo, reed, or other large flat leaves, may expand to over CNY10.3 billion (USD1.4 billion) by next year, according to leading food maker Wufangzhai Industry.
China’s zongzi market is highly concentrated and is expected to grow further, according to the prospectus of Wufangzhai, which went public in Shanghai last August.
Chinese people mainly eat zongzi during the Dragon Boat Festival, a three-day holiday that falls on the fifth day of the fifth month of the lunar calendar. The average gross profit margin of zongzi exceeded 40 percent to top various other food categories last year.
Traditional food and beverage firms, including hot pot chain Haidilao International Holding and US coffee giant Starbucks, are offering innovative zongzi products such as ice cream zongzi gift boxes.
The gross profit margin of Wufangzhai's zongzi was 41 percent last year, higher than that of its mooncakes, egg products, pastries, and other treats, the Zhejiang-based firm said in its 2022 earnings report. Baked foods maker Toly Bread's zongzi-related gross profit margin was 37 percent, more than that for its bread or mooncakes, its trading report showed.
Consumers choose zongzi made with traditional flavors, according to a Data Technology report. Over 41 percent prefer zongzi with salted egg yolk and meat, and nearly the same percentage like it with fresh meat, while less than 13 percent choose new flavors such as zongzi with chocolate or mushrooms.
Materials account for 68 percent of the cost of making zongzi, while labor makes up 17 percent, according to Wufangzhai.
Editor: Martin Kadiev