Core Insights - The snack and baking industry is undergoing a significant transformation from a "shallow water zone" to a "deep water zone," where mere micro-innovations are no longer sufficient for profitability. The shift is driven by rising health awareness among consumers, the emergence of Generation Z as the main consumer force, and the unlocking of potential in lower-tier markets. The industry is transitioning from simply being "tasty" to "eating well" [1][3] - The competition logic in the industry is being restructured, moving away from a focus on flavor innovation and channel distribution to a new competitive dimension of "product innovation + scenario exploration + value delivery" [1][3] Group 1: Opportunities in Brand Innovation - The snack industry is entering a new era of category innovation, shifting from a single "taste-driven" approach to a core competitiveness centered on category innovation. Companies are now competing through cross-border integration, category reshaping, and scenario expansion [5] - Cross-border integration is evident in collaborations between snack brands and popular IPs, enhancing sales through marketing strategies that resonate with consumers [6] - Category reshaping is occurring with traditional snacks being redefined, such as the successful introduction of probiotics in milk candies and health-focused products like sesame balls [6] - The scenarios for snack consumption are expanding beyond traditional leisure activities to include meal replacements and office settings [6] Group 2: Market Dynamics and Consumer Behavior - Multiple forces are reshaping the boundaries of snack categories, including favorable national policies aimed at boosting consumption, health-conscious consumer trends, and the rise of cultural confidence driving the "national trend" [7] - In the proactive consumption era, brand value is becoming a key differentiator, as consumers seek products that offer functionality, attitude, and cultural significance [8] Group 3: Trends in Snack Innovation - The current trends in snack innovation include: 1. Healthification: Consumers are increasingly focused on ingredient transparency, seeking snacks with fewer additives and beneficial components [9][25] 2. Emotional satisfaction: There is a growing demand for snacks that provide emotional comfort and cater to various situational needs [10][31] 3. New Chinese-style snacks: There is a high preference among young consumers for snacks that reflect national culture and local specialties [11][34] 4. Functional snacks: Consumers are looking for snacks that offer additional benefits, such as sleep aid or nutritional enhancement [12][37] 5. Flexible meals: Snacks are increasingly being used as meal replacements, with a notable trend among younger consumers [13][40] Group 4: Driving Forces Behind Snack Innovation - Key driving forces for snack innovation include: 1. Rising disposable income leading consumers to spend more on health, quality, and emotional satisfaction [15][16] 2. Strong penetration in lower-tier markets, where local specialty snacks and new Chinese-style products are thriving [17] 3. The rise of discount snack stores, which are becoming important retail channels that facilitate product experimentation and consumer engagement [19][20] 4. The trend towards personalized consumption habits, promoting the development of functional and customized snack products [21] Group 5: Future Outlook - The snack industry is transitioning from merely satisfying hunger to providing functional solutions for everyday life, with a focus on cultural communication and scientific backing in product innovation. Companies are encouraged to align with policy directions and deeply understand consumer needs to sustain long-term growth [41]