Core Insights - The snack industry in China has entered a "micro-growth era" with a slight decline in market size, down 3.5% year-on-year in 2023, indicating a shift from double-digit growth to single-digit growth [1][13][8] - Channel diversification is a key driver of market transformation, as consumer sensitivity to prices increases, leading to a shift from reliance on single channels to a multi-channel approach [1][3][27] Market Dynamics - The snack industry is characterized by a "large industry, small enterprises" competitive landscape, with the top five companies holding less than 15% market share [1][14] - The rise of discount channels, particularly volume discount stores, has become a significant source of growth, offering lower prices by reducing markup in the supply chain [2][23] - Traditional channels like key account (KA) stores have a markup rate of up to 60%, while volume discount channels maintain a markup of approximately 36% [2] Online Sales Transformation - Content e-commerce platforms like Douyin and Kuaishou are reshaping online sales dynamics, with the live e-commerce market growing by 66% year-on-year in 2023 [2][27] - The sales volume of snack products on Douyin has seen significant growth, although the average transaction value has decreased, reflecting a trend of "exchanging price for volume" [2][27] Structural Adjustments - The snack industry is undergoing profound structural adjustments, driven by channel diversification and rational consumer behavior, leading to a focus on high cost-performance products [3][27] - Brands need to adapt to these channel changes and optimize product structures and supply chain efficiencies to maintain competitive advantages [3][27] Future Outlook - The competition in the snack industry is expected to increasingly emphasize channel innovation and cost control, potentially leading to a market concentration around brands with comprehensive capabilities [3][27]