1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

This project selects coarse grains such as rice, millet, corn, and soybeans as the main raw materials to process and produce a series of puffed snack foods. It uses scientific production processes to ensure the maximum retention of raw material nutrients while also incorporating other nutrients and aroma components into the ingredients, resulting in the products that are not only nutritionally balanced and have a superior taste, but also suitable for people of all ages to consume, with significant health benefits.

Coarse grain snack foods help optimize residents’ dietary structure and enrich the diversity of food. Long term consumption of such foods is highly beneficial to one’s health. After the completion of the project, a complete industrial chain from the production, processing to sales of coarse grains will be realized, creating a coarse grain industry with distinctive characteristics and market competitiveness. In addition, through cooperation with farmers, this project will effectively expand the scale of grain planting for farmers, thereby promoting their income growth.

1.1.2 Market prospect

(1) Current situation of the leisure food industry

1. Market size

According to the  Leisure Food White Paper Report 2024, the size of China’s leisure food market reached 1.1654 trillion yuan in 2023, marking the official entry of the snack consumption market into the ranks of the “trillion-level market”. In addition, the Research Report on the Current Situation and Consumer Behavior of China’s Leisure Food Industry in 2023-2024 released by iMedia Consulting also reveals that China’s leisure food market has continued to grow rapidly from 2010 to 2023. It is expected that by 2027, the industry market size will have grown to 1237.8 billion yuan, and the compound annual growth rate is expected to remain above 10% in the next five years.

2. Market concentration

At present, although the leisure food market in China is large in size and diverse in categories, the market concentration is relatively low. The total market share of the top 15 enterprises is about 21.5%, indicating that there are still many small and medium-sized enterprises in the industry. Among these enterprises, industry leaders such as BESTORE, Three Squirrels, Qiaqia Food, etc. have demonstrated significant advantages in market share, brand awareness, product innovation, and other aspects.

3. Sales channels

At present, offline channels remain the main sales channel for leisure food in China, contributing 85.3% of the overall revenue of leisure snacks. Offline channels include convenience stores, warehouse style member supermarkets, community fresh supermarkets, snack volume stores, etc. At the same time, online models are also constantly innovating. In addition to traditional B2C and C2C models, new retail formats such as O2O, social e-commerce, and live streaming e-commerce have emerged. Leisure snack sales are entering a new stage of omni-channel integration.

4. Output

With the continuous expansion of the snack food market, the production of snack food is also continuously increasing. Diversified leisure snacks meet consumers’ pursuit of deliciousness, from traditional potato chips and chocolate to modern healthy nuts, dried fruits, etc. The diversity and innovation of products provide consumers with a wider range of choices.

In summary, China’s snack food industry is currently in a stage of rapid development. The market size is huge and continues to grow, and although the market concentration is low, leading enterprises have shown obvious advantages. The sales channels are becoming increasingly diversified and constantly innovating, and the output is steadily increasing.

(2) Market situation of puffed snack food

1. Market size: China’s puffed food market continues to grow, reaching 138.39 billion yuan in 2023 and is expected to have exceeded 100 billion yuan by 2025. The global puffed food market sales reached $507.2 billion.

2. Brand competition: The puffed food market is fiercely competitive, with major brands including Want Want, HSUFUCHI, Dali, Oishi, etc. These brands have significant advantages in brand influence, market share, and product innovation. The trend of branding development is obvious, and joining well-known brands can leverage their brand influence and market recognition to quickly open up the market and reduce entrepreneurial risks.

3. The market situation of coarse grain snack puffed food presents the following main characteristics:

Market demand growth: With the popularization of healthy eating concepts, consumers are increasingly focusing on the nutritional value and health benefits of food. Coarse grains are gradually gaining popularity among consumers due to their rich nutritional components such as dietary fiber, vitamins, and minerals, which have various health benefits such as promoting digestion, controlling blood sugar, and preventing cardiovascular diseases. In addition, the fast-paced lifestyle makes convenient and easy to consume foods more popular, and puffed foods perfectly meet this demand.

Product innovation: In order to meet the diverse needs of consumers, puffed food companies constantly introduce new flavors and forms of products. For example, launching products that do not contain genetically modified ingredients, are organic-certified, and have a low carbon footprint has attracted a wider consumer base.

Technological progress: The advancement in puffed food manufacturing technology enables manufacturers to provide healthier, low-fat, and low calorie products. The application of intelligent manufacturing technology not only ensures the safety of food, but also improves production efficiency and reduces production costs.

In summary, the coarse grain leisure puffed food market is in a rapid development stage, with increasing market demand, fierce brand competition, continuous product innovation, and technological progress driving the development of the industry.

(3) Market demand forecast for puffed snack food

1. Market size and growth trend: According to market analysis, the global puffed food market sales will reach $507.2 billion in 2023, and it is expected that by the end of 2033, the global puffed food market size will have reached $835.8 billion, indicating that the puffed food industry still has huge growth potential in the next decade. In the Chinese market, the size of the puffed food market is also constantly expanding. By 2023, the size of the puffed food market in China has reached 138.39 billion yuan, indicating an increasing demand from consumers for puffed food.

2. Changes in consumer demand: With the increasing attention of consumers to health, puffed food manufacturers are paying more and more attention to the nutritional value and ingredients of their products. Puffed foods that are additive free, low-fat, low sugar, or sugar free are becoming increasingly popular in the market. In addition, the puffed food market constantly introduces new varieties and flavors to meet the needs of different consumer groups, such as sweet, salty, spicy and other diversified choices, as well as products designed specifically for children, athletes or vegetarians.

With the improvement of people’s living standards and the need for healthy eating, the proportion of coarse grain food consumption in people’s lives is increasing. Especially in the dietary consumption of urban residents, the proportion of coarse grain food has increased from less than 10% 10 years ago to about 30% now. The dietary structure of residents is becoming more reasonable, and the market space is constantly expanding. Moreover, the climate and environment in Jilin Province are suitable for agricultural development, with abundant resources and unique agricultural features, which have created favorable conditions for the development of the project.

The demand for coarse grain puffed food market is expected to steadily increase. With the increasing attention of consumers to healthy eating, puffed foods made from coarse grains will be favored by more consumers due to their nutritional value and health attributes. Puffed coarse grains not only retain the nutritional content of coarse grains, but also make them more crispy and delicious through puffing technology, meeting the needs of modern consumers for convenient and healthy food.

1.1.3 Technical analysis

This project aims to introduce advanced food processing technology to upgrade and transform the existing coarse grain production process. It will delve into the unique formulas and techniques of traditional coarse grain staple foods in folk culture, while emphasizing the development of products with nutritional value and functional characteristics.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The country has introduced multiple policies to encourage the development and innovation of the leisure food industry, such as the Guiding Opinions on Cultivating Traditional Advantageous Food Production Areas and Local Characteristic Food Industries, Opinions on Further Releasing Consumption Potential to Promote Sustainable Consumption Recovery, and 14th Five-Year Plan for Promoting Agricultural and Rural Modernization. These policies provide a clear and broad market prospect for the leisure food industry and a favorable production and operation environment for enterprises.

The Notice on Supporting the Accelerated Development of Agricultural Product Processing Industry Policies and Measures Issued by the General Office of Jilin Provincial People’s Government:

1) In terms of reducing financing costs (Article 1 to Article 3), it proposes to provide interest subsidies for the annual increase in productive fixed asset loans for agricultural product processing projects; provide guarantee fee subsidies for newly added loans from policy guarantee institutions; provide preferential interest rate loans to eligible agricultural product processing enterprises, focus on solving difficulties such as financing difficulties and high financing costs, and promote enterprise expansion and equipment upgrading and transformation.

2) It terms of promoting technological innovation (Article 4 to Article 6), it proposes to provide reward and subsidy policy support for the intelligent transformation and digital transformation of agricultural product processing enterprises; provide policy support and incentives for key technologies in agricultural product processing, industry university research cooperation, and investment in scientific research and development, promote the transformation of scientific research achievements, enhance the technological innovation capabilities of enterprises, and strengthen endogenous momentum.

3) In terms of strengthening the guarantee of factors (Article 7 to Article 11), it proposes to use special funds to increase the promotion of agricultural product brands and the creation of provincial-level agricultural industrial parks; provide policy support for land transfer in agricultural product processing projects; open up green channels for major projects; Screening and recommending agricultural product processing enterprises to apply for fund support, further stimulating the development potential of enterprises and the vitality of industrial development. ‌‌

(2) Industrial advantages

Siping City is known as the “Capital of High-quality Corn in China” and has established the largest standardized production base of 1 million acres of national green food raw materials (corn) in China. Siping corn has become a national geographical indication product. These brand advantages help enhance the market competitiveness and visibility of leisure food. ‌

The food industry in Siping City is a traditional advantageous industry, with a total of 66 large-scale food industry enterprises in the city. The annual grain conversion capacity can reach 4 million tons, and it has an annual production capacity of 300000 tons of alcohol, 1.8 million tons of starch, and 480000 tons of soybean oil. Lishu County has leading enterprises such as Xintianlong Co., Ltd., Shuguang Agriculture and Animal Husbandry Co., Ltd., Modern Tianfeng Co., Ltd., and Hongzui Agricultural High-tech Co., Ltd., which provide strong production capacity and supply chain support for leisure food projects.

(3) Location advantages

Siping City is located in the southwest of Jilin Province, in the central hinterland of the Songliao Plain. It is an important transportation hub and logistics node city in Northeast China. Siping City is located at the junction of Liaoning {Province, Jilin Province, and Inner Mongolia, and is a must pass route for Jilin Province, Heilongjiang Province, and east of Inner Mongolia to reach coastal ports and the Bohai Economic Circle, with unique geographical advantages.

The transportation facilities in Siping City are also very complete. As a transportation hub city, Siping has convenient railway, highway, and air transportation networks. In terms of railways, Siping is the intersection of Harbin-Dalian Railway and Changchun-Tumen Railway, connecting major cities and ports in Northeast China. In terms of highways, Siping has multiple expressways and national highways, such as Beijing-Harbin Expressway and Changchun-Shenzhen Expressway, which facilitate transportation connections with surrounding areas. In addition, Siping City is also planning to build an airport to further enhance its air transportation capacity.

These transportation facilities and geographical locations have made Siping City an important logistics center and transportation hub in Northeast China, promoting regional economic development and convenient flow of people and logistics, which is conducive to the transportation and distribution of leisure food. ‌‌

(4) Talent advantages

Siping has several universities including Jilin Normal University, Boda College of Jilin Normal University, Jilin Agricultural Engineering Vocational and Technical College, Siping Vocational University, as well as Hongzui Vocational and Technical College under construction, Siping Medical College of Jilin University and Siping Radio and Television University, etc. Among them, Jilin Normal University is a key university in Jilin Province, with 16302 full-time undergraduate students, 1844 graduate students, 336 international students, and 15131 adult education students. It can cultivate thousands of higher education talents to the society every year. Surrounding cities such as Changchun, Harbin, and Daqing have numerous universities that can provide over 500000 high-level talents annually. These talents can provide technical support for project construction.

1.2 Contents and scale of project construction

The project covers an area of approximately 50000 square meters and mainly involves the construction of production workshops, office complexes, and ancillary facilities, as well as the purchase of complete sets of production and processing equipment, food testing equipment, etc. It will construct processing production lines and purchase corresponding supporting facilities. It will mainly produce various types of snack food made from coarse grains, including puffed snack food such as rice crust, maipai, and maishao, etc.

1.3. Total investment of the project and capital raising

The total investment of the project is 500 million yuan, including the construction investment of 400 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 270 million yuan, its profit will be 83 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 1 year) and its return on investment will be 17%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

1. Increasing farmers’ income: The construction of leisure food projects helps to improve farmers’ income levels. By developing the leisure food industry, it can drive the processing and sales of agricultural products, increase employment opportunities and income sources for farmers, and thus promote the development of rural economy.

2. Maintaining social stability: The implementation of leisure food projects helps to maintain social stability. By providing employment opportunities and increasing farmers’ income, poverty and inequality in rural areas can be reduced, social conflicts can be lowered, and social harmony can be promoted.

3. Promoting regional economic development: The construction of leisure food projects has a significant promoting effect on regional economic development. By attracting investment and promoting the development of related industries, it can drive economic growth in surrounding areas, increase tax revenue, and enhance local fiscal revenue.

4. Improving quality of life: The development of leisure food projects can enrich people’s dietary choices, meet their needs for healthy, delicious, and convenient food, and enhance their quality of life.

5. Promoting rural revitalization: Leisure food projects are often combined with local characteristic agricultural products, and through brand and industrialization operations, it can promote rural revitalization, protect and inherit local characteristic culture, and enhance local visibility and attractiveness.

6. Increase employment opportunities: The construction and operation of leisure food projects require a large amount of human resources, including production, sales, logistics, and other links, which provide a large number of employment opportunities for local residents, especially in rural areas, and can effectively alleviate employment pressure.

In summary, the construction of leisure food projects not only has significant economic benefits, but also brings extensive social benefits, playing an important role in promoting rural economic development, increasing farmers’ income, and maintaining social stability.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Siping Hongzui Economic and Technological Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Siping Hongzui Economic and Technological Development Zone

Address: 1 Xinghong Road, North Yingbin Street, Siping City, Jilin Province

2.2 Unit overview

Siping Hongzui Economic and Technological Development Zone was established in 2001, promoted to a provincial-level development zone in 2002, and upgraded to a national level development zone with the approval of the State Council in 2010. It is located in the northwest of Siping City, Jilin Province, the central city of the Northeast Asian Economic Circle, with a total planned area of 21.35 square kilometers.

As the only national level development zone in Siping City, Hongzui Economic and Technological Development Zone fully plays a leading and guiding role, taking the lead in the development of industrial agglomeration, especially focusing on the important instructions of General Secretary Xi Jinping’s inspection of Jilin Province and Siping City, and making full efforts to protect the black soil. It has gradually become a modern agricultural machinery industry uplift zone, a demonstration zone for foreign investment and foreign trade innovation and transformation, a leading zone for the integrated development of the four pear cities, a gathering zone for characteristic equipment manufacturing, and a growth pole for Siping’s northward development.

During the 14th Five-Year Plan, guided by the Action Plan for Industrial Layout of Siping City, Hongzui Economic and Technological Development Zone will focus on developing three leading industries: equipment manufacturing, new building materials, and modern logistics, in accordance with the general idea of “intensive development, innovative development, efficient development, and green development” based on the original industrial foundation and future development direction of Hongzui Economic and Technological Development Zone, with a key layout of “one base and three parks”. “One base” refers to the innovative demonstration base for China’s black soil protection agricultural machinery industry, with a planned area of 4.4 square kilometers and a total planned investment of 10.9 billion yuan. The focus is on building a modern agricultural equipment industry base that integrates high-end manufacturing, scientific research and innovation, and supporting services. “Three parks” refer to the equipment manufacturing industrial park, which mainly focuses on the fields of heat exchange, environmental protection, packaging, safety equipment, agricultural machinery industry, engineering machinery, rubber and plastic products, etc; modern logistics and warehousing industrial park, mainly focusing on agricultural machinery warehousing logistics, warehousing transactions, and bulk agricultural and sideline product commercial logistics; the new materials industrial park mainly focuses on the transformation and upgrading of new wall materials, new waterproof sealing materials, new insulation materials, decoration materials, non-ferrous metal fields, as well as the comprehensive utilization of construction waste and waste recycling. At the same time, it will accelerate the cultivation and development of emerging industries such as digital technology, health food, and pharmaceuticals, and make every effort to build Hongzui Economic and Technological Development Zone into a gathering area for high-end industries in the city, a leading area for development, and a bridgehead for transformation and upgrading.

Hongzui Economic and Technological Development Zone sincerely welcomes people of insight from home and abroad to come to the district for cooperation and common development. It will provide the best environment and service to build the best development platform for investors and friends who come to the district to invest and develop together, and create a better tomorrow with you. ‌‌

2.3 Contact method

Contact person: Liu Mingyan

Tel: +86-18804340068

Fax: +86-434-3205285

E-mail: 940712739@qq.com

Contact method of the city (prefecture) where the project is located:

Contact unit: Siping Economic Cooperation Bureau

Contact person: Wen Dacheng

Tel: +86-434-3260536

E-mail: spjhjjhk@163.com