Summary of the Conference Call on Konjac Industry Industry Overview - The konjac industry encompasses cultivation, initial processing, refined powder processing, and downstream applications, primarily in the food sector, including ready-to-eat snacks, konjac jelly, and vegetarian noodles. The total market size is estimated to be between 17.2 billion to 19.2 billion yuan [1][3] - The domestic konjac planting area has been declining since 2020 due to the pandemic, raw material backlog, and price fluctuations. Drought in 2024 is expected to further reduce production. A slight increase in planting area is anticipated in 2025, but challenges remain in yield recovery [1][5] Key Insights - The main variety cultivated in China is the flower konjac, accounting for over 90% of the total. White konjac is harder to cultivate, while yellow konjac relies on imports [1][6] - The growth cycle of konjac is five years, with farmers adjusting harvest times based on market conditions, which affects subsequent yields. Strict pest control and crop rotation increase cultivation difficulty [1][7] - Since 2021, imports of yellow konjac powder from Indonesia have surged, indicating significant international trade influence on domestic market prices [1][8] Market Potential - The konjac food industry has vast development potential, with expectations of becoming a trillion-yuan market. The ratio of fresh konjac to dried slices to refined powder is 13:2:1, indicating significant processing potential [2] - The ready-to-eat snack segment is projected to generate over 3 billion yuan in sales in 2024, with a terminal sales value of approximately 6 billion yuan, driven by high absorption and expansion properties of konjac powder [2][3] - The overall market for konjac snacks is estimated at 8-10 billion yuan, with a strong growth trajectory anticipated [2] Competitive Landscape - Leading companies in the konjac sector include Weilong, which is expected to maintain rapid growth with a sales forecast exceeding 3 billion yuan in 2024, and Yanjinpuzi, which has achieved over 1 billion yuan in sales through innovative products [2][16][17] - The ready-to-eat snack market is highly profitable, with a market size of approximately 8 billion yuan and a high gross margin due to low production costs [3][12] Challenges and Opportunities - The konjac industry faces technical barriers, particularly in breeding and pest control, which need to be addressed to enhance production [9] - The potential for per capita consumption in China to exceed that of Japan is significant, as Chinese applications of konjac are more diverse compared to Japan's traditional uses [10] - The konjac snack segment is favored due to its health benefits, low calorie content, and flavor versatility, appealing to a broader consumer base compared to traditional snacks like spicy strips [11][13] Future Outlook - The konjac jelly segment has revitalized the jelly market, with rapid growth expected in the coming years [15] - Companies like Yizhi Konjac are exploring downstream processing to expand their market presence, with a focus on food and beauty products showing strong growth [18] - The overall konjac industry is projected to continue its rapid growth, potentially becoming a significant emerging industry in the coming years [3][4]