Zhejiang Wufangzhai Industry (SH:603237) 虎嗅APP·2025-05-30 13:23Core Viewpoint - The traditional zongzi brands are experiencing a decline in sales despite the overall growth of the zongzi market in China, indicating a shift in consumer preferences towards new and innovative products [3][5][11]. Group 1: Market Performance of Leading Brands - Major zongzi brands such as Wufangzhai and Zhenzhenlaolao reported significant revenue declines in 2024, with Wufangzhai's revenue down by 14.57% and zongzi revenue down by 18.64%, resulting in a nearly 20% drop in sales volume [6]. - Zhenzhenlaolao faced a net loss of 29 million yuan in 2024, worsening from a loss of 8.1 million yuan in 2023, with its rice product sales, including zongzi, declining by 17.62% [6]. - Despite the poor performance of these leading brands, the overall zongzi market in China is still expanding, with projections indicating a market size exceeding 10 billion yuan in 2024 and expected to reach 11 billion yuan by 2025 [10][11]. Group 2: Shifts in Consumer Behavior - The traditional offline retail channels are struggling, with sales of packaged zongzi in these channels dropping by 34.53% in revenue and 26.78% in sales volume compared to the previous year [13]. - In contrast, online sales of zongzi are thriving, with some trendy products selling out quickly, indicating a shift in consumer purchasing habits [13]. - The number of SKUs available in offline channels has decreased from 4,092 last year to 2,657 this year, reflecting a decline in consumer interest in traditional retail [13]. Group 3: New Competitors and Flavor Innovations - The zongzi market is witnessing a flavor revolution, with innovative flavors capturing over 30% market share and showing significant growth [20]. - New flavors such as durian, taro, and low-sugar options are becoming popular among younger consumers, while traditional flavors are losing ground [20]. - The trend towards healthier options is evident, with predictions that the market share for healthy zongzi will exceed 40% by 2030, contrasting sharply with traditional high-calorie recipes [20].