In the baking industry, for companies to establish a foothold, they must surmount a series of industry barriers which not only determine market access but also affect their long-term competitiveness. Moving forward, the baking expo will delve into the specific components of these barriers.

1. Food Safety and Market Access Barriers

Food production enterprises are required to obtain a food production license, which involves strict regulations on various aspects such as factory facilities, equipment layout, process flow, and personnel management, making the preparation process complex and time-consuming. Companies are under close supervision in their daily operations, and production processes must comply with standards; violations will be subject to penalties. Additionally, companies must adhere to a series of quality standards for production and inspection, which increases costs and raises management difficulties.

2. Technical Barriers

The development of baking food formulas is a complex process that requires consideration of ingredient selection and proportioning; different raw and auxiliary materials affect the taste and quality of the product, necessitating extended trials and accumulation. Large-scale production demands high process standards, and the production environment must be personalized according to product characteristics, with different products having varying requirements for temperature, humidity, and other conditions. Moreover, companies need to customize production equipment and enhance the synergy of the machinery, which is a challenge that new enterprises find hard to achieve in the short term.

3. Marketing Network and Service Barriers

The end customer base for baked goods is highly diversified, with many customers being widely distributed, having fragmented demands, and requiring a variety of product specifications. This demands that companies possess an extensive sales network and strong logistics and distribution capabilities. Additionally, customers require technical services, and companies must have a professional team to provide technical guidance and training, which is a daunting task for new entrants to assemble a team and accumulate experience in a short period.

4. Financial Barriers

The initial investment in the baked goods manufacturing industry is substantial, including the purchase of imported production equipment, construction and decoration of factory buildings, and the stockpiling of raw materials. Moreover, ongoing operational costs are high, including R&D investment, marketing expenses, and labor costs. The capital recovery period is long, and new products need time to gain market acceptance due to fierce competition, which poses a significant test for companies' financial strength and liquidity.

5. Brand Barriers

Well-known baked goods brands have a high market share and consumer loyalty. Building a brand requires long-term investment of funds and resources to increase brand awareness and reputation through various channels. Consumers tend to choose brands they are familiar with and trust, and new entrants need to invest time and effort to establish trust and reputation. Well-known brands have a rich product line and strong innovation capabilities, making it difficult for new companies to compete in the short term.

Bakery China 2025 will continue to share more industry professional content with you, so please stay tuned!

Bakery China 2025, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 2025 is the Asia Pacific's leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry. It is the first-choice trade fair to enter China's bakery market.

（source: PUHUA POLICY）