In a recent visit to Heshenghui Shopping Center in Beijing, Baking Brand Exhibition finds that a high-end bakery named Uhealth caught the attention of many shoppers. The bakery was packed with customers, and it wasn't hard to see why. A single toast loaf was priced at 35 yuan, and a cheese bread at 28 yuan—just these two items easily exceeded 60 yuan. Uhealth is not alone. In recent months, several premium bakery brands, including Paper Stone Bakery, Mr. Stone's Oven, and BUTTERFUL&CREAMOROUS (B&C), have opened new stores in cities like Beijing, Shenyang, Shenzhen, and Xi’an. These bakeries have positioned themselves with an average spending of around 60 yuan per person, significantly higher than that of ordinary chain bakeries.

The Collective Rise of High-End Bakeries

The popularity of these expensive bakeries is driven by consumers' increasing demand for quality and experience. Take Paper Stone Bakery as an example. The store’s decor, featuring a combination of wooden and warm yellow hues, creates a cozy and comforting atmosphere. With a floor space of over 100 square meters, the bakery displays a variety of bread items, from caramel croissants to apple Danish pastries. The rich aroma of freshly baked bread and the distinct scent of butter fill the air. The store also boasts many thoughtful details, such as bread-shaped figurines and Christmas-themed decorations. The transparent open kitchen and stone-oven baking technique are key highlights, emphasizing professional craftsmanship.

These bakeries are not only focusing on the in-store experience but also leveraging social media marketing to attract customers. For instance, Uhealth launched a pre-opening campaign offering a 30-yuan voucher for sharing the store’s launch post on social media platforms. This strategy attracted a large crowd, with queues stretching from the mall’s B2 level to the nearby subway entrance. Mr. Stone's Oven employs a strategy of limited-time supply and purchase restrictions to create a sense of scarcity. Its signature products often sell out quickly, and some customers even resort to hiring line standers to secure their purchases.

Why Are Premium Bakeries So Popular?

The success of these high-end bakeries lies in their ability to meet consumers' emotional needs. In an era of rational consumption, customers are more willing to pay for high-quality products and unique experiences. These brands have built their identities around specific selling points. Paper Stone Bakery highlights its stone-oven baking method, while B&C emphasizes its Italian Sicilian style. They also use popular social media tactics, such as pre-launch promotions and like-to-win contests, to drive foot traffic.

Moreover, the rise of premium bakeries reflects the "lipstick effect." Amid economic uncertainty, consumers are more cautious about luxury purchases but are willing to spend on affordable, mood-enhancing products. These bakeries offer a wide variety of visually appealing and delicious bread items at a relatively low price point. Their products not only satisfy taste buds but also serve as a medium for social sharing and interaction.

How Long Will the Trend Last?

The future of the baking industry looks promising. According to iMedia Research, China’s baking retail market reached 561.42 billion yuan in 2023 and is projected to grow to 859.56 billion yuan by 2029. However, scaling up for premium bakery brands is not an easy task. To maintain their high-end positioning, these brands often face high labor and rental costs, making rapid expansion challenging.

Take B&C as an example. The brand offers three types of stores: a 150-square-meter standard store, a 150–200 square meter main store, and a 200–300 square meter flagship store. These stores are primarily located in high-end shopping centers in first- and second-tier cities. The large store format requires a significant workforce. The monthly labor cost for a premium bakery can easily exceed 98,500 yuan. Additionally, cultural differences in eating habits pose a challenge for the promotion of baking products in China. Unlike in Western countries, where bread is a staple food, baking products in China are more often seen as desserts or snacks rather than main meals. This difference makes it harder to cultivate a strong repeat-purchase habit among consumers.

Despite these challenges, premium bakery brands have found their niche by focusing on precise positioning and innovative marketing. Their success is not only due to the products themselves but also to the quality lifestyle and social experience they offer. As consumers continue to value health and quality, the premium baking market is expected to keep growing. However, brands will need to strike a balance between cost control and market expansion to sustain their presence in the competitive market.

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

Bakery China, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 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.

The 27th Bakery China would be held on May 19-22, 2025 at National Exhibition and Convention Center (NECC), Shanghai, covering 330,000 sqm show space. Over 2,200 exhibitors and 400,000 visits are expected.

（source: FoodTalks）