Core Viewpoint - The baking industry is experiencing a significant wave of closures, with many popular brands failing to sustain operations due to increased competition and rising costs, leading to a rapid market reshuffle [8][9][56]. Group 1: Current State of the Baking Industry - A large number of popular baking brands, including "BreadTalk" and "Gontran Cherrier," have recently closed multiple locations or ceased operations entirely, indicating a troubling trend in the industry [10][17][25]. - The closure rate in the baking sector is accelerating, with 2024 and early 2025 seeing a continuous stream of brand shutdowns, including notable names like "Panda Not Going" and "ABC Cooking Studio" [29][30]. - As of December 2024, the baking sector saw a net increase of only 8,000 stores, with a closure rate of 34.2% compared to an opening rate of 37.1% [30]. Group 2: Market Dynamics and Trends - Despite the closures, the baking market remains vibrant, with new brands emerging that focus on product innovation and quality, appealing to younger consumers [34][58]. - The market is witnessing a bifurcation into high-end and low-cost segments, with premium brands emphasizing quality and unique offerings, while budget brands focus on affordability and high volume [58][60]. - Major players like "Hai Di Lao" and "Cha Yan Yue Se" are entering the baking space with competitive pricing strategies, which may disrupt existing market dynamics and challenge high-priced brands [51][62]. Group 3: Future Outlook - The baking industry is expected to continue its rapid reshuffle, driven by supply chain efficiency, consumer insights, and brand resilience, with a focus on health, digitalization, and unique consumer experiences [62][63]. - Brands that can effectively navigate these trends and establish a strong market presence are likely to thrive, while those lacking core competitiveness may face accelerated exit from the market [63].