SINGAPORE: Instead of buying mooncakes for the Mid-Autumn Festival this year, freelancer Ms Liu Siqi decided to save money and bake her own at a workshop in Guangzhou, before reuniting with her family in her hometown, Foshan.
“I was considering whether to buy them especially since Mid-Autumn is a special period,” Ms Liu, 23, told CNA. “But I don’t find them particularly delicious and feel that the holiday mark-up is too high.”
With her eight handmade mooncakes, the recent graduate remarked that she could save up to four yuan (US$0.56) a piece.
That’s even as mooncake prices have fallen this year.
Data company Mashangying researched that the average market price has dropped to 83.36 yuan from 85.69 yuan in 2023.
The China Bakery and Confectionery Industry Association also found that the price of mainstream mooncake gift boxes this year is more affordable, with the most concentrated price range between 70 and 220 yuan, and most of the affordable gift boxes are below 60 yuan.
But it seems that the once-luminous autumnal pastry might have lost its shine among buyers, with companies still being hit by lacklustre sales despite the lower price point.
“We always (purchase) so many mooncakes during Mid-Autumn, and this year is no different,” Ms Liu said.
“(This year) I wondered, if I brought home another (store-bought) box, would my family really need it?”
Observers say it reflects new spending habits in China, especially among younger consumers, as people become more rational and discerning with their spending habits and purchases.
In 2019, China’s highly competitive mooncake market was valued at a whopping 20 billion yuan, but sales have been on the decline since the pandemic and retailers have continued to struggle.
While mooncake sales in 2023 surpassed pre-COVID levels, generating more 22 billion yuan, the forecast this year is dimmed.
Mooncake production is estimated to be about 300,000 tonnes, down from 320,000 tonnes in 2023. Meanwhile, sales are projected to drop to 2019’s level, according to a market trend report released last month by the China Bakery and Confectionery Industry Association.
SIMPLICITY OVER LUXURY
In China, mooncakes are more than just a dessert. Regarded as a symbol of luxury and extravagance, they are traditionally given to family, friends and relatives during the annual Mid Autumn Festival, which fell on Tuesday (Sep 17).
The majority of Chinese consumers have become “more pragmatic”, said Ms Olivia Plotnick, founder of Wai Social, a Shanghai-based social media marketing agency – which is “in line with broader market trends.”
“Rising economic pressures and changing consumer values are driving a greater focus on practicality, affordability and real value,” Ms Plotnick told CNA.
“When it comes to traditional products such as mooncakes, this manifests in (consumers) choosing simplicity and meaningfulness over luxury.”
Budget conscious shoppers like Ms Liu attributed this year’s decline in mooncake buying to the overall economic situation in China.
“Everyone is being more budget-conscious. It’s quite normal for people to scale down their spending in such situations,” she said. “I think it’s due to the overall economic situation, which isn’t great this year, including my personal financial situation, which is not as good as last year.”
The falling mooncake sales come amid China’s sluggish economy, though some experts noted that the ongoing anti-corruption drive and quality concerns also contributed to the decline.
A nationwide crackdown on bribery and corporate gifting affected sales this year, said Julien Lapka, founder of Inner Chapter, a brand strategy and insight studio headquartered in Shanghai.
Source: CNA
