Hello! I'm your friend, an economist and financial journalist. Today, we're going to talk about the hottest and most perplexing phenomenon in the snack industry in 2026 – “fresh snacks”.
In simple terms, these are the shops that sell freshly roasted chestnuts, freshly ground nut spreads, and short-shelf-life bread, such as Jinli Men, Jiduo Quan, and Yili. They're incredibly popular right now; young people are willing to wait in lines for three hours just to buy a bag of snacks. However, the investors behind them are holding back their wallets and hesitant to invest. What's going on? Is this the next billion-dollar opportunity, or just another bubble?
Let me break down the details of this news in plain language for you.
Summary of Key Points
In one sentence: “Fresh snacks” are replacing “bulk-snack stores” as the new favorite in offline retail, with the market size more than tripling in five years, and it's expected to exceed 40 billion by 2026. Although consumers are eagerly lining up and brands are opening stores quickly, due to high operational difficulties (high losses), severe homogenization, and competition from giants like Hema, the leading brands have yet to secure significant funding.
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In-Depth Analysis: Understanding the Truth About “Fresh Snacks” from Five Dimensions
1. Why the sudden popularity? Because “cheap” isn’t enough anymore; people want a more “authentic” experience
To understand why fresh snacks have become so popular, we need to look at their competitors – bulk-snack stores like Snack Huo Man and Zhao Yiming. Over the past three years, bulk-snack stores have expanded rapidly, opening more than 60,000 stores nationwide, relying on “extremely low prices” and a wide range of products. But when “cheap” becomes the norm, consumers start to become averse to it.
The pain point that fresh snacks address is the lack of an authentic experience.
- The logic of bulk-snack stores: Like supermarkets, with cold shelves, they focus on supply chain efficiency to make you feel the price is really low.
- The logic of fresh snacks: Like markets or snack streets, with warm ovens, the aroma of roasted foods, and open kitchens, they focus on the in-store experience and sensory enjoyment.
The numbers don’t lie:
- Market growth: From less than 5 billion in 2020 to 18 billion in 2025, with a compound annual growth rate of over 40%. It’s expected to jump to 40-50 billion by 2026.
- Changing consumer habits: Snacks are no longer just an occasional treat; they’ve become the “fourth meal.” 72% of urban residents have a dedicated budget for snacks, and 67% are willing to pay more for “healthy, fresh” options.
In simpler terms: People used to go to snack stores to save money; now, they go there for a sense of enjoyment and social interaction. The aroma of freshly roasted chestnuts is something a cold package can’t replicate. This is why young people flock to the B1 floors of shopping malls, taking photos with their paper bags to share on social media – it’s not just about buying snacks; it’s about buying a “lifestyle experience.”
2. Who are the players in this market? Three different types of players with their own strategies
The “fresh snack” market has clearly defined tiers, each with its own approach:
- First tier: Established players and newcomers (with proven models):
- Xue Ji Roasted Snacks: Once known for its high-end roasted nuts (536 yuan/kg, jokingly called “Xue Ji Jewelry”), it entered the fresh snack market in 2026, adding baking and desserts. It has money and a strong brand, but it’s facing performance challenges and needs a new narrative.
- Jiduo Quan: The fastest-growing dark horse, backed by the Black Classic Group (founded with stinky tofu), it has a strong cold chain and central kitchen. It opened more than 130 stores in less than a year and aims to reach 2,000 by 2027. Its advantage lies in its infrastructure; it can reliably supply fresh marinades that other brands can’t.
- Yili Nutco: Follows a “central factory + on-site production” model, with bases in Shenyang and Nanjing, attracting customers with freshly ground nut spreads and baked bread. Nearly 70% of its revenue comes from on-site production, which yields high margins, but it also comes with heavy operational costs.
- Second tier: Regional leaders (with effective single-store models):
- Jinli Men: Started in Changsha, it now has over 40 direct stores. It’s a model of “profitable single stores,” with monthly sales exceeding 4 million yuan per store, and an average transaction value of 50-60 yuan. It’s built three production bases in Changsha, Dongguan, and Changzhou, and has received investment from the China Resources Group (Wanxiang City/Wanxiang Hui), showing trust from the mall owners.
- Pu Mama: Originated in Ningbo, it targets the B1 floors of shopping malls, creating a unique “underground snack” niche.
- Third tier: Cross-industry disruptors (the most active group):
- Jue Wei Food, Ming Ming Huo Man, Cha Yan Yue Se, Lai Yi Fen, San Zhi Song Shu, Yong Hui Supermarket... More than 10 well-known companies entered the market in the first half of 2026.
- Why they’re entering? Because bulk-snack stores are no longer competitive, and they need a new strategy to maintain growth and stock prices.
In simpler terms: It’s like a game of chess where established players (like Xue Ji) want to turn the tables, new players (like Jiduo Quan and Jinli Men) want to expand their territory, while giants (like Jue Wei and Yong Hui) are already sitting at the table with significant resources.
3. The Achilles’ heel of this business: Losses and homogenization
The story sounds promising, but there are two major pitfalls that many brands haven’t overcome:
Pitfall 1: High losses (the biggest cost):
- Traditional packaged snacks: Long shelf life, with a loss rate of 1%-3%.
- Fresh snacks: Short shelf life (often less than 5 days), with an industry average loss rate of 8%-15%.
- Consequence: If products don’t sell within a day, it’s a loss. Jinli Men can reduce losses to 1%-3% through advanced data-driven replenishment systems, but this requires high technical and management skills. Most brands still rely on intuition when ordering goods, resulting in high margins being eaten up by losses.
Pitfall 2: Homogenization and price competition:
- All look the same: Jinli Men, Jiduo Quan, Yili, Pu Mama – their stores offer similar items: freshly roasted chestnuts, short-shelf-life baked goods, fresh marinades, nuts, and drinks. The only differences are the logos and decor.
- Price disputes: Yili’s Beijing store was criticized for being too expensive; its freshly ground pistachio spread costs 68 yuan, while online platforms sell it for 40 yuan. That’s a 70% increase!
- Xue Ji’s lesson: Xue Ji once became popular with its milk dates, but when other brands produced similar, cheaper versions, and due to excessive store openings, its performance declined.
In simpler terms: Fresh snacks are like “internet-famous restaurants” that attract customers with their novelty. But once people find another place with a similar taste or a better price, the hype fades quickly. Brands need to continue innovating or reduce costs to stay competitive.
4. The shadow of giants: The threat from Hema and others
This is often overlooked but crucial:
What are fresh snack stores doing? They offer baking workshops, freshly cut fruits, cooked dishes, and short-shelf-life products. Hema and other new retail giants like Qixian have already been doing this, and they do it better.
- Scale advantage: Hema’s supply chain, cold chain, and loss management are unmatched by individual fresh snack brands.
- Price advantage: Hema’s large volumes allow it to offer lower prices.
- Brand recognition: Consumers go to Hema for both snacks and groceries, solving multiple needs in one stop. Fresh snack stores can only offer snacks.
Market limitations:
- According to Guohai Securities, the theoretical maximum number of fresh snack stores nationwide is 4,000.
- Compared to the more than 60,000 bulk-snack stores, this isn’t on the same scale.
- Even in an optimistic estimate, the market size is only 60-80 billion, compared to bulk-snack stores’ 220 billion.
In simpler terms: Fresh snacks are like exquisite “private kitchens” in big cities, while Hema is like a large, comprehensive supermarket. Although private kitchens are unique, supermarkets are cheaper, more versatile, and more stable. When consumers realize they can get similar products at Hema for less, the advantage of fresh snacks diminishes.
5. The cold shoulder of capital: Why do queues and hesitation coexist?
This is the core contradiction of the news: Consumers show their support with long queues, but investors remain cautious.
- Hot numbers: Over 20 financings in 2025, totaling over 1 billion yuan.
- Cold reality: As of August 2026, none of the leading brands (Jinli Men, Jiduo Quan, Yili, Pu Mama) have secured Series A funding. Top institutions like Sequoia China have shown interest but haven’t invested.
Why are investors hesitant?
1. High valuations: Jiduo Quan, with just over 100 stores, is valued at 3 billion yuan, meaning each store is valued at nearly 30 million yuan. This is not cheap in the retail industry, especially since it hasn’t proven its scalability.
2. High operational difficulties: Fresh snacks combine snack retailing with light dining, requiring high levels of staff, standardization, and quality control. Bulk-snack stores could open 60,000 stores in three years because they mainly handle packaged goods; whether fresh snacks can reach the same limit is uncertain.
3. Lack of standards: In August 2026, Qihuo Street tried to set industry standards, but there’s still no consensus. Without clear definitions, investors are cautious.
In simpler terms: Capital is not charitable; they look for scalability and predictability. Fresh snacks seem like a good business (profitable per store), but not a “big business” that can scale quickly and cheaply. They wonder if the current popularity is due to novelty or real demand.
Conclusion: A good business, but not necessarily a big opportunity
Fresh snacks solve a problem: after bulk-snack stores made “cheapness” the norm, why do consumers still visit physical stores? The answer is on-site production, short shelf life, and a better experience. This works at the single-store level, as Jinli Men’s monthly sales prove. However, a successful single store doesn’t mean the entire market will succeed.
- Limited potential: With a maximum of 4,000 stores, it’s unlikely to become a billion-dollar giant like bulk-snack stores.
- High operational challenges: High losses, labor costs, and difficulty in standardization make scaling extremely difficult.
- Fierce competition: With giants entering, homogenization is increasing, and price wars are imminent.
Final judgment:
Fresh snacks may be a “small but beautiful” business, suitable for brands with strong supply chains and excellent operational capabilities to focus on regional markets. But they’re unlikely to become a “big opportunity” and replicate the explosive growth of bulk-snack stores.
In the meantime, we’ll see a strange sight: young people lining up for hours in shopping malls for snacks, while investors in offices shake their heads at PPTs, unsure about the investment prospects.
For consumers, enjoy the fun of fresh snacks; for entrepreneurs, unless they can significantly reduce losses and standardize their operations, this business won’t be easy to succeed.