Core Viewpoint - The konjac industry is experiencing significant growth, with the market for konjac snacks projected to reach 172-192 billion yuan by 2024, driven by its low-calorie, versatile, and appealing characteristics [4][13][32]. Group 1: Konjac Industry Chain - Konjac, also known as konnyaku, is primarily composed of glucomannan, a high-quality soluble dietary fiber that expands significantly when hydrated, providing a jelly-like texture [8][9]. - The main downstream applications of konjac include konjac gel foods, food additives, healthcare products, and industrial materials, with the largest market still being food [12][11]. - The estimated market sizes for konjac snacks in 2024 are 80-100 billion yuan for konjac ready-to-eat products, 47 billion yuan for konjac jelly, and 45 billion yuan for instant konjac noodles [13][12]. Group 2: Supply and Demand Dynamics - The cultivation of konjac is challenging, requiring specific environmental conditions and crop rotation, leading to a decline in planting area in recent years [14][16]. - The demand for konjac is recovering in 2024, but adverse weather conditions have resulted in a significant decrease in planting area and yield, causing prices to rise [16][18]. - The supply of konjac is expected to remain constrained in the short term, with high prices likely to persist until 2026 [18]. Group 3: Comparison with Other Snacks - The konjac snack market is positioned for rapid growth, with potential to surpass the market for spicy strips, which is projected to grow at a compound annual growth rate of only 3.6% over the next five years [25][26]. - Konjac snacks offer a wider variety of flavors and forms compared to spicy strips, appealing to a broader consumer base, including health-conscious individuals [26][22]. - The konjac jelly market is also expected to grow significantly, with projections of reaching 182 billion yuan by 2029, driven by its health benefits and popularity among younger consumers [30][29]. Group 4: Future Outlook - The consumption of konjac in China is expected to continue rising, with the potential to exceed current consumption levels in Japan, where konjac has been a staple for centuries [20][21]. - The innovation in flavor and health trends is likely to drive the expansion of konjac products beyond traditional uses, establishing it as a symbol of new Chinese snacks and healthy lifestyles [32][32].

Core Insights - Konjac powder, derived from konjac tubers, is a natural functional additive with high viscosity and strong water absorption properties, primarily composed of glucomannan (KGM) [1][2] - The industry is supported by national policies promoting konjac as a key crop for health, accelerating standardization across the entire supply chain, particularly in regions like Yunnan [1][8] - Despite rising costs and market fluctuations, the planting area is expected to rebound by 10% in 2025 due to increasing prices [1][19] - The downstream applications of konjac powder span food, pharmaceuticals, and personal care, with the market size projected to reach 55 billion yuan by 2024, growing at a CAGR of over 20% [1][15] Industry Overview - Konjac powder is produced through a series of processes including washing, slicing, drying, and grinding, with its core component, KGM, being a high molecular polysaccharide with unique properties [2][3] - The classification of konjac powder includes ordinary and purified types, with the latter being more prevalent in high-end applications due to its higher quality [3] Health Benefits - Konjac powder offers multiple health benefits, including weight management, blood sugar regulation, digestive health, cancer prevention, and calcium supplementation [4][6] - Its unique structure allows it to expand significantly in water, providing a prolonged feeling of fullness and aiding in cholesterol and fat absorption [4][6] Market Dynamics - The konjac powder market is experiencing a shift from supply-driven to demand-driven dynamics, with sales expected to reach 5.48 million tons in 2024, reflecting a growth rate exceeding 10% [17] - The market size has expanded from 2 billion yuan in 2020 to 55 billion yuan in 2024, with projections to exceed 65-75 billion yuan by 2025 [19] Competitive Landscape - The konjac industry is characterized by low concentration and high marketization, with many players in the upstream processing segment, while a few leading companies dominate the deep processing sector [21] - The market is facing pressures from rising raw material prices and competition from leading firms, with the top five companies expected to increase their market share from 30% to 40% [21] Future Trends - The konjac powder industry is moving towards technology-driven growth, with an emphasis on deep processing and functional product development [23] - Innovations such as 3D printing and high-purity KGM extraction are expected to drive product premiumization and expand applications across various sectors [23][25] - Global expansion is being pursued through initiatives like the Belt and Road, targeting Southeast Asia and the Middle East, while e-commerce is enhancing international brand presence [26]

Core Viewpoint - The konjac snack industry is gaining popularity among consumers due to its crispy texture and low-calorie, healthy characteristics, indicating a broad future potential for the konjac category [1]. Group 1: Konjac Industry Chain - The demand side shows that konjac is widely used in food, healthcare, industrial, and agricultural fields, with the primary application in food, including snacks, meal replacements, and fresh ingredients. The konjac snack market is projected to reach approximately 172-192 billion yuan by 2024 [3][11]. - On the supply side, the planting area for konjac has been limited and has faced challenges, leading to a decline in planting area for four consecutive years since 2020. The planting area is expected to decrease to 178 million mu in 2024, with a projected 20% reduction in fresh konjac yield due to drought conditions [3][14][19]. Group 2: Industry Barriers and Outlook - The konjac industry faces barriers such as limited planting technology and low barriers in the processing sector. The downstream application space remains large, with significant growth potential in the konjac snack market [4][25]. - The konjac snack segment is considered a promising market due to its health attributes and strong flavor absorption capabilities. The market for konjac snacks is expected to surpass traditional spicy strips, with leading brands like WeLong and YanJinPuZi establishing a strong market presence [4][34]. Group 3: Market Dynamics and Future Trends - The konjac snack market is projected to grow significantly, with WeLong's konjac products expected to generate over 30 billion yuan in sales by 2024, indicating a strong market position [11][34]. - The konjac jelly market is also anticipated to expand, with a projected market size of approximately 47 billion yuan in 2024, driven by consumer demand for innovative and healthy products [12][39]. - The konjac industry is still in its early development stage in China, with significant room for growth compared to Japan, where per capita consumption has declined. The potential for increased per capita consumption in China is expected to rise as the industry matures [27][28].