Summary of Key Points
The fresh snack segment is becoming the new trend in the snack industry: the competitive focus has shifted from “being cheaper” to “being fresher,” with market size skyrocketing in just a few years (from less than 5 billion in 2020 to 18 billion in 2025, and expected to reach 40-50 billion by 2026). New brands such as Jinlimen, Yili, and Jiduquan are expanding rapidly, while established giants like Laiyifen, Juewei, and Chayanyueshe are also entering the market. However, to survive in this segment, key factors include product quality, supply chain efficiency, and strong store operations; only long-term players will ultimately succeed.
1. The Transformation of the Snack Industry: From “Stockpiling for Savings” to “Instant Freshness”
Traditional snacks are designed for home stockpiling—large packages of chips and nuts that are inexpensive and suitable for slow consumption at home. Fresh snacks, on the other hand, are meant for immediate enjoyment—freshly made milk tea, baked goods with a 3-day shelf life, and spicy marinades with a 5-day shelf life, emphasizing “visible freshness” and being convenient to buy and consume while shopping.
Why do consumers pay more for these? Nowadays, they value health and the experience more: seeing the products being prepared in front of their eyes (such as milk tea being made on demand), smelling the aroma, and touching the freshly baked goods, along with labels that indicate low additives and short shelf life, make them feel more confident. This shift has freed the snack industry from years of price-based competition, focusing instead on freshness and quality.
2. The Market Is Expanding Rapidly, with Both New and Old Players Competing
The market for fresh snacks is growing at an alarming pace: it grew from less than 5 billion in 2020 to 18 billion in 2025, with an annual growth rate of over 40%, and could reach 40-50 billion by 2026, or even 100 billion according to some projections. Everyone wants a piece of this pie:
- New Brands Expanding Quickly: Jinlimen (originally a roasted nuts store with over 30 direct-operated stores and plans to expand to Hangzhou and Shanghai), Yili (founded in Shenyang and becoming popular in Beijing with over 100 stores), Jiduquan (starting in Changsha with plans to open a thousand stores annually after opening up franchising);
- Established Giants Entering the Scene: Laiyifen has opened “Fresh Life” stores, Juewei has launched “Juewei Fresh Snacks” stores, Chayanyueshe has created “Jishi Shangwei” in-store shops, and even new tea brands like Lemon to the Right are getting involved.
3. The Secrets of Attracting Customers in the Fresh Snack Market: Mix-and-Match, Immersive Experience, and Affordable Prices
What makes fresh snack stores so popular? It’s all about three unique aspects:
1. Product Mix: Combining milk tea, baked goods, marinades, roasted nuts, and snacks into one place, creating a “fresh snack supermarket”—for example, Jinlimen offers freshly made milk tea and marinades at the entrance, baked goods and chips further in, with a drink-making area for a complete range of needs;
2. Immersive Experience: Customers can watch products being prepared, smell the bakery aroma, and try samples for free, making it like visiting an internet-famous store, perfect for taking photos and sharing on social media;
3. Affordable Prices: Unlike high-end bakeries, fresh snack prices are more accessible—Jinlimen’s milk tea starts at 6.5 yuan, and a large pack of chips costs only 7 yuan, making them affordable to most people.
4. The Hard Barriers to Survival: Mastering Supply Chain and Operations
Although fresh snacks seem easy to enter, they require a high level of expertise: short-shelf-life products (1-day milk tea, 3-day baked goods) demand excellent supply chain and operational capabilities:
- Fast Supply Chains: Jiduquan ensures that 60% of its products reach stores within 12 hours from the factory, using a combination of direct procurement from suppliers, central warehouses, and daily cold-chain distribution; Jinlimen has built factories in Changsha, Dongguan, and Changzhou for direct production and delivery;
- Precise Inventory Management: It’s crucial to avoid overstocking (which leads to waste) or running out of products (which disappoints customers), requiring meticulous management;
- Profitability per Store: Can you cover the costs of inventory loss? Do you have best-selling items with high repurchase rates? For example, if the first store generates over 10 million in monthly sales, poor loss control could result in significant losses.
5. Who Will Win in the Long Run? Long-Term Players
The market is already highly competitive, with products, decorations, and formats becoming increasingly similar. To stand out, you need to focus on “system capabilities”:
- Product Quality: Do you have unique products that others don’t offer, such as a popular short-shelf-life baked good or marinade?
- Supply Chain Efficiency: Can you maintain freshness while reducing costs (e.g., by building your own factories and optimizing the cold chain)?
- Operational Excellence: Are you able to manage inventory effectively, control losses, and provide excellent customer service?
Industry experts believe that only long-term players will succeed—those who focus on building sustainable systems and improving their capabilities over time. This is no longer about whether to enter the market, but about who can do it best.
In summary, fresh snacks represent a new opportunity in the snack industry, but you need real skills to thrive in this competitive environment. Consumers can enjoy fresher and healthier options, while brands must excel in supply chain management and operations to stand out.