"Can't Hold On Any Longer" 80,000 Stores Shut Down... The Fall of China’s Bakeries That Relied on SNS Buzz

3,334 New Bakeries Opened in One Year
Yet 81,700 Locations Closed
Bakeries Inside Major Supermarkets Remain the Exception

In the past year, it has been reported that over 80,000 bakeries in China have closed down.

On July 22, the Chinese daily newspaper 21st Century Business Herald reported, "While large supermarket bakeries remain popular, neighborhood bakeries are disappearing."

Even Major Chains Are Closing One After Another

The outlet analyzed the reasons behind the decline of bakeries, stating, "There has been insufficient investment in proprietary branding and product research and development, and the product lineup has focused excessively on gift sets for traditional Chinese holidays such as the Dragon Boat Festival and the Mid-Autumn Festival. These products failed to meet consumer demand, resulting in customer attrition."

In fact, over the past year (as of mid-July), 3,334 new bakeries opened across China, but a staggering 81,700 shops were forced to close due to declining sales. Even once-popular major chains have dwindled, with only two remaining in Beijing, and bakeries that once dominated social networking services (SNS) are gradually disappearing as well.

The Cold Snap Spreads Throughout the Entire Food Service Industry

The Chinese hot pot (shabu-shabu) industry also saw approximately 190,000 stores close throughout the year. Photo to aid article understanding. Pixabay.

This cold snap appears to be spreading throughout China's restaurant industry as a whole. Sina Finance, citing Zhihai Brand Monitoring statistics, reported on July 20 that "from December of last year to June of this year, 2,055,200 restaurants nationwide shut down," and highlighted that "in particular, 25% of new businesses could not survive even six months." The hot pot (shabu-shabu) industry also saw approximately 190,000 stores close throughout the year.

The publication pointed out, "Over the past decade, offline shops have followed a viral marketing formula that relied more on 'Instagrammable interiors' and 'SNS word-of-mouth' than actual taste, but this approach has now completely failed. It's not that people have stopped buying food, but rather that the places they buy it and their standards have changed."

In fact, bakeries located inside major supermarkets are unaffected by these market trends. Bakeries at retailers such as Sam's Club and Hema Fresh have leveraged their robust distribution networks to offer fresh and delicious bread at affordable prices, and are enjoying strong popularity as a result.

Younger Generations Seek Value for Money, Flocking to Supermarket Bakeries

The outlet also noted that changes in generational consumption patterns have altered the logic of the market. The younger generation, who prioritize practicality and value for money, are opting for value-oriented bread costing 30 yuan at large supermarkets instead of 60 yuan trendy bakery items. They are no longer willing to spend on brand premiums, extravagant interior design, or SNS-driven marketing.

Beijing Daily echoed this sentiment, stating, "The rise and fall of the bakery industry reflects the rapidly changing Chinese retail ecosystem, and today's consumers in China are focusing not simply on 'cheaper goods' but rather on 'greater value.' For them, the value of a product is determined by whether it is truly necessary for their lives."

This content was produced with the assistance of AI translation services.