Dongxing: Food subsegment track continued prosperity, cost becomes focus

Dongxing released a research report stating that this year, the snack food sector in the food and beverage industry is still thriving, and it is expected that snack food will continue to see stable growth throughout the year. Especially for enterprises that can seize the advantage of new channels, they will have a stronger overall performance than the industry. With the recovery trend in mass catering, the industry is more optimistic about the upward performance certainty of the frozen food industry and recommends focusing on leading companies in the frozen food sector. As Maotai's ex-factory prices gradually stabilize, the marginal improvement in demand in the second half of the year is expected to bring about an overall recovery in the industry. Dongxing's main points are as follows: The overall atmosphere of the Baijiu exhibition at the Spring Sugar Fair in 2026 is quieter than in previous years, with a decrease in the number of participating companies and personnel, reflecting that the industry is undergoing a bottom adjustment phase. Corporate strategic focus is shifting from channel expansion to user operations and consumer cultivation. The popular product segments show more resilience, and the momentum in the sub-sectors such as catering chains and snacks continues. The rising oil prices have become a concern for companies whether they will lead to an increase in costs. Overall industry inventory is decreasing, with differentiation in Baijiu sales. From the Spring Festival sales this year, there is a greater differentiation in sales between famous liquor brands and mid-to-high-end and local liquor companies. Maotai and Wuliangye Yibin have shown good sales performance relying on strong brand power, and both channel and market inventory levels remain relatively low. Mid-to-high-end and local liquor companies have shown more mixed performance, with overall market inventory decreasing compared to the highest inventory level last year. Maotai's ex-factory price has shown signs of stabilization, and it is expected that the demand side will see marginal improvement in the second half of 2026. The prosperity of the sub-sectors in the snack food industry continues, with costs being a focus. The prosperity growth brought by the new channels continues to drive the growth of snack food, showing a stable growth trend. The snack food exhibition at this Sugar and Wine Fair is also in a state of high popularity. In terms of product direction, "sugar-free," "additive-free," and "clean ingredient list" have become new directions for food companies to launch new products. Faced with the pressure of rising raw material prices due to the increase in oil prices, companies are paying close attention, and many companies have locked in raw material prices for a period of time to cope with possible increases. The trend in mass catering is improving, and the industry chain may benefit. Since the beginning of this year, the demand for mass catering has shown a more certain growth, indicating an overall warming and improving trend in the industry. This may bring about a recovery in overall demand in the industry chain, such as flavoring companies mainly serving mass catering channels, frozen and pre-packaged food companies mainly serving small B-end customers, etc., which are expected to further recover in performance in 2026. Risk Warning: Macroeconomic recovery is below expectations, demand recovery is below expectations, policy easing is insufficient.