Is the baking industry saturated? What are the prospects?

Is the baking industry saturated? What are the prospects? My answer is: The reason why the baking industry is saturated is because it is difficult to make money by opening a bakery shop, but there are also bakery shops that are very popular. So the bakery is still not saturated.

First of all: It is normal to make money and lose money in doing business. Compared with developed countries in Europe and the United States, the prospects of the baking industry are far from saturated. Many of us now do not know much about baking. Maybe everyone is familiar with cakes, breads and biscuits, but few people have tried some high-end desserts. Therefore, the baking industry still needs to be popularized by everyone, and there is still a long way to go to let more people understand baking. Baking is a Western pastry that we ordinary people don’t have much exposure to, especially since a lot of butter and cream are used in baking. Some people don’t like to eat foods with a strong milky aroma. There are also significant limitations to the spread of baking. Another point is that baked goods bought from outside are too sweet, which is why many people don’t like them. The last point is the price. Bread costs five yuan and steamed buns cost one yuan. Obviously steamed buns are more affordable.

Secondly: It can be said that there is definitely a prospect for baking, but we have to consider our current situation. Our current baking development is very uneven. There are many bakeries in first- and second-tier cities, and there are many bakeries in the third and fourth tiers. There are very few first-tier cities. There are even fewer in rural areas. The most common type of Western dessert in rural areas is birthday cake. Since some other desserts require special display cabinets, they are even more difficult to distribute in rural areas. Therefore, everyone must choose a suitable location when opening a store, and conduct a good survey of the local consumer population. That is to say, what is the local purchasing power? If the varieties produced exceed the level of purchasing power, it will be difficult to be consumed. The cost of baking varies depending on the raw materials used. Domestic raw materials are relatively cheap but the taste is also very average. This is not worshiping foreigners but seeking truth from facts.

Finally: In the baking industry, even in first-tier cities, the big fish eats the small fish, and Xiaoyu has nothing to eat. Moreover, more and more people in first-tier cities are learning home baking, even in chain bakeries. Some stores make money, and some stores lose money. But if you open a store in a big city, it is almost impossible to make money, because the good locations are almost all taken up, and the rent in the good locations may become a heavy burden. In fact, it doesn’t mean that you can’t open bakeries in big cities. You just need to change your strategy. When opening a bakery, you need to open a small bakery first, with a size of less than ten square meters. The varieties you make should not be too many but more refined. It’s best to have no more than three varieties, one that you’re best at, one that’s most popular, and one that can make use of leftover ingredients. This will not only reduce costs, but also increase customer base to a greater extent.