SINGAPORE:

As the Mid-Autumn Festival approaches, many consumers in China are opting out of traditional mooncake purchases, marking a notable shift in buying behaviors. Take, for instance, 23-year-old freelancer Liu Siqi, who chose to bake her own mooncakes at a workshop in Guangzhou. Reflecting on her decision, Liu expressed, "I considered buying mooncakes since it’s a special holiday, but I find them overpriced and not particularly delicious." By baking her own, she managed to save approximately four yuan (US$0.56) per cake.

This year, prices for mooncakes have seen a slight decrease, with the average market price dropping from 85.69 yuan to 83.36 yuan, according to research firm Mashangying. The China Bakery and Confectionery Industry Association added that mainstream mooncake gift boxes are available at more competitive prices, especially in the range of 70 to 220 yuan. Despite this reduction in cost, the overall sales of mooncakes remain disappointing.

"A few years ago, purchasing mooncakes was a must during the festival,” Liu remarked. “This year, I found myself questioning if my family even needed another store-bought box." This sentiment reflects a broader trend among younger Chinese consumers who are becoming increasingly mindful of their spending habits.

While mooncake revenue surged to over 22 billion yuan in 2023—recovering beyond pre-COVID levels—the forecast for this year suggests a downturn. Production estimates indicate a decrease from 320,000 tonnes last year to about 300,000 tonnes this year, with sales expected to revert to levels seen in 2019.

A Shift from Luxury to Practicality

In Chinese culture, mooncakes represent more than just a sweet treat; they symbolize luxury and the spirit of gifting during the Mid-Autumn Festival, which fell on September 17 this year. However, many consumers, particularly from the younger demographic, are prioritizing practicality over extravagance. Olivia Plotnick, founder of Shanghai-based marketing agency Wai Social, noted, "Economic pressures and evolving consumer values are steering people toward affordability and real value. When it comes to traditional products like mooncakes, consumers prefer simplicity and authenticity."

As Liu pointed out, increased budget-awareness stems from the current economic climate, which many are feeling acutely. The decline in mooncake sales coincides with broader sluggishness in China's economy, compounded by a government crackdown on lavish corporate gifting and a growing demand for product quality.

Tighter regulations mean that mooncake companies must monitor the pricing of their gift boxes—particularly those priced above 500 yuan—pushing them to emphasize high-quality yet reasonably priced products. "The repercussions of these crackdowns have significantly impacted the market," stated Julien Lapka, founder of Inner Chapter, a brand strategy studio.

Health-Conscious and Nostalgic Consumers

Another crucial factor affecting mooncake consumption is an increasing demand for healthier options. An iiMedia Research study found that over 80% of surveyed consumers were interested in healthier mooncake varieties, while 50% preferred innovations like low-sugar and low-fat alternatives.

As traditional mooncakes, especially those filled with lotus paste, can exceed 890 calories, many consumers are questioning the nutritional value of these festive treats. With rising health awareness, younger consumers are seeking brands that align with these values.

Moreover, the appetite for nostalgic flavors and heritage brands has grown stronger. Experts observe a shift toward traditional mooncake flavors, such as pork from Shanghai or spicy beef from Chongqing, reflecting a desire for authenticity and comfort in these uncertain times. "Consumers are gravitating towards products that evoke nostalgia, providing them a comforting sense of control," Lapka noted.

Sustainability Takes Center Stage

This year’s festival has also seen a move away from excessive and ornate packaging. Younger, environmentally-conscious consumers are rejecting extravagant designs and excess plastic waste associated with traditional mooncake packaging. Liu exemplifies this trend: "I don’t want to buy commercial mooncakes because I care about the environment. There’s too much plastic waste in this market." By baking her own, she can minimize waste and use eco-friendly packaging.

Data from the State Administration for Market Regulation points out that excessive packaging constitutes a significant portion of urban household waste in China. With growing awareness of this issue, consumers are pressing companies to adopt sustainable practices.

Luxury hotels, previously focused on offering extravagant mooncake boxes, are also modifying their strategies, partnering with chefs to create authentically flavored offerings rather than lavish designs. Collaborations with Michelin-starred chefs have sparked renewed interest among buyers looking for quality experiences in the traditional mooncake market.

As the Mid-Autumn Festival unfolds, it is evident that Chinese consumers are evolving. They are now seeking meaning and authenticity in their purchases, indicating a promising trend towards sustainability, practicality, and a return to heritage flavors. As for Liu, she has found joy and satisfaction in creating her own mooncakes, hinting at a potential shift away from commercial products in favor of homemade treats in the future.

"Next year, I think I'd prefer to make them myself again. It's a unique experience to create and share with family," Liu concluded.