How Snack Wholesaling Is Reshaping China's Retail Landscape

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The snack retail industry in China is undergoing a seismic transformation, driven by the rapid rise of the snack wholsaling model—a lean, high-efficiency retail format that’s redefining how consumers access affordable, diverse, and high-turnover snacks. At the forefront of this shift are major players like Wanchen Group and Mingming Henmang, whose explosive growth has turned heads across the investment and consumer sectors.

With over 40,000 stores nationwide and a market size projected to exceed 150 billion yuan by 2027, the snack wholesaling sector is no longer a niche trend—it’s a dominant force reshaping the entire snack retail ecosystem. This article explores how this model works, why it’s succeeding, and where it might go next.

The Rise of Snack Wholesaling: A New Retail Paradigm

Walk down any urban or suburban street in China today, and you’re likely to spot brightly lit, neatly organized snack stores with shelves packed with everything from dried fruit to spicy tofu. These aren’t your average convenience stores. They represent a new retail category: snack wholsaling stores, designed for bulk buying at ultra-low prices.

Unlike traditional supermarkets or e-commerce platforms, these stores operate on a simple premise: more for less. By cutting out middlemen and streamlining supply chains, they deliver value directly to cost-conscious consumers—especially in lower-tier cities and communities where price sensitivity runs high.

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According to data from CICC and Jia Consulting, snack wholsaling accounted for 37% of snack consumption channels in 2024, surpassing supermarkets (22%) and e-commerce (20%). This shift reflects changing consumer behavior: people now prefer dedicated, specialized stores that offer immediate access, broad variety, and consistently low prices.

Take Wanchen Group, for example. Since announcing its entry into the snack wholsaling space in August 2022, its stock price has surged nearly 14-fold, with peak gains exceeding 17 times. Similarly, Mingming Henmang has become the top customer for leading snack manufacturer Yanjin Puzi, with its channel revenue jumping from 7.31% in 2022 to 23.69% in 2024.

As Dongwu Securities’ food & beverage analyst Su Cheng notes, the model thrives on specialization, speed, and value—offering faster product turnover, better pricing, and stronger in-person engagement than online alternatives.

Three Key Advantages Fueling Growth

1. Streamlined Supply Chain = Lower Prices

The core of the snack wholsaling advantage lies in supply chain efficiency. Traditional retail involves multiple layers: brands → distributors → wholesalers → retailers → consumers. Each layer adds margin, inflating final prices.

Snack wholsaling flips this model. Stores buy directly from factories or use private-label manufacturing, bypassing distributors entirely. They also avoid costly retail fees like slotting charges, display fees, or promotional markups.

Per Huatai Securities research, the total markup from brand to shelf is just 36% in wholsaling stores, compared to 60–80% in supermarkets. This cost advantage translates directly into competitive pricing—making premium snacks accessible at mass-market rates.

2. Wide Product Range & Rapid Innovation

Consumers today demand more than just chips and candy. They want functional foods (like probiotic yogurt), health-focused items (such as daily nuts), and novel textures (like konjac jelly). Snack wholsaling stores meet this demand with broad SKU portfolios and rapid restocking cycles.

For instance:

More impressively, inventory turnover has plummeted—from 60+ days in 2022 to under 18 days in 2023—ensuring shelves stay fresh and trends are captured quickly.

3. Deep Penetration into Lower-Tier Markets

While e-commerce dominates urban centers, snack wholsaling thrives in lower-tier cities and rural communities, where delivery infrastructure lags and impulse purchases are common.

By focusing on community-adjacent locations—near residential complexes, schools, or shopping strips—these stores tap into everyday snacking moments: post-work treats, weekend movie nights, or casual hangouts.

Growth has been staggering:

This expansion is largely driven by franchising, allowing brands to scale rapidly without heavy capital investment.

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Restructuring the Snack Industry Value Chain

Beyond retail, the wholsaling boom is reshaping upstream production. For manufacturers like Yanjin Puzi, these stores are not just distribution channels—they’re strategic partners driving innovation and efficiency.

As one executive explained:

“Snack wholsaling creates real demand. It pushes us to innovate faster, reduce costs, and align closely with consumer preferences.”

Key impacts on suppliers include:

Analyst Su Cheng draws parallels with Mixue Ice Cream & Tea, another low-cost, high-volume success story. Both rely on scale-driven efficiency—though while Mixue owns much of its supply chain, snack wholsalers currently focus on optimizing distribution rather than manufacturing.

Still, the principle remains: efficiency wins.

Market Size Headed Toward 150 Billion Yuan

The numbers speak for themselves.

According to iiMedia Research:

Leaders remain Wanchen Group and Mingming Henmang:

Mingming Henmang is now preparing for a Hong Kong IPO—potentially becoming the second listed snack wholsaling company—and reported a staggering 55.5 billion yuan in GMV in 2024 alone.

Together with other growing chains like Zhao Yiming Snacks and Tangchao Snacks, the top brands now operate more than 40,000 outlets nationwide.

What’s Next? Challenges and Future Directions

Despite its momentum, the sector faces real challenges.

Risk of Homogenization & Price Wars

Most stores follow similar strategies: same suppliers, same pricing models, same layouts. With little differentiation, competition often descends into brutal price wars, squeezing margins and risking quality cuts upstream.

Overexpansion Concerns

With thousands of new stores opening yearly, saturation looms—especially in mid-sized cities where foot traffic may not support so many outlets long-term.

Yet innovation is emerging:

These moves suggest a broader vision: evolving from snack-only shops into full-fledged daily necessities retailers—akin to Japan’s 7-Eleven model.

Su Cheng believes this diversification could unlock new revenue streams—even if initial margins are thinner. Over time, owning both the network and private-label products could create lasting competitive advantages.

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Frequently Asked Questions (FAQ)

Q: What is snack wholsaling?
A: It’s a retail model where stores sell snacks in bulk at low prices by cutting out middlemen and sourcing directly from factories or through private labels.

Q: Why are these stores so cheap?
A: By eliminating distributors and avoiding retailer fees (like shelf placement charges), they reduce costs significantly—passing savings directly to customers.

Q: Are all products generic or off-brand?
A: No. While private-label items are common, many national brands are also sold at lower markups due to direct partnerships.

Q: How fast is the industry growing?
A: From around 8,000 stores in 2022 to over 40,000 expected by 2025—with market value projected to hit 155 billion yuan by 2027.

Q: Can this model expand beyond snacks?
A: Yes. Leading chains are already adding daily essentials like rice, oil, and personal care items—paving the way for full-line discount stores.

Q: Is investing in this sector risky?
A: While growth is strong, risks include market saturation, rising franchisee defaults, and intense competition leading to margin compression.

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