From Sunflower Seeds to Sparkling Cases: China’s Snack Shops Rebrand as Luxury Retail

China’s traditional fried‑snack and nuts sector has been recast as a premium retail category, with mall stores, designer packaging and viral products pushing prices into ranges once associated with luxury goods. Rapid brand upgrades and industry growth coexist with consumer resistance and the risk that price rises will outstrip perceived value.

A grey squirrel enjoys a meal of red berries on a rooftop in a lush garden setting.

Key Takeaways

  • 1Traditional Chinese stir‑fried snack shops have upgraded into mall‑focused, branded stores with premium pricing and boutique presentation.
  • 2Prices span roughly 30–300 yuan per jin (about 60–600 yuan/kg), with some viral or specialty products exceeding 300 yuan/kg.
  • 3Market size exceeded 3,000 billion yuan in 2024 with forecasts to about 4,283 billion yuan in five years, underpinning strong industry growth expectations.
  • 4Consumers remain price‑sensitive — most spend 20–100 yuan monthly on nuts and snacks — and complain about product homogeneity and rising costs.
  • 5The sector’s premiumisation raises both margin opportunities and risks from fad dependency, supply‑cost shocks and potential consumer backlash.

Editor's
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Strategic Analysis

The premium turn in China’s snack sector illustrates how everyday categories can be remade by branding, retail design and social media virality. That remaking produces higher per‑unit economics and makes snacks a more defensible retail format in malls, but it also flips the industry’s key challenge: maintaining authenticity and product differentiation at scale. If brands rely excessively on packaging and hype without deepening supply‑chain transparency, traceability and ongoing product innovation, they will be vulnerable to a classic correction when consumers reassess value. Investors should watch gross margins and the cadence of new, genuinely differentiated SKUs; policymakers and consumer groups may increasingly scrutinise pricing practices if the upscale trend accelerates while average household budgets remain constrained.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

A stroll through a Chinese shopping mall can now feel like entering a jewelry boutique — except the cases are filled with nuts, dried fruit and candied dates. Long associated with roadside stalls and inexpensive packets, the country’s traditional “stir‑fried” snack sector has been refashioned over the past decade into a mall‑centric, branded business that charges prices once reserved for discretionary luxury purchases.

The shift is visible in the displays and price tags. Where a handful of sunflower seeds once cost a few yuan, retail outlets from Xueji (薛记) to Qiwang and a string of mall‑first brands sell products that span a wide price spectrum — the market now cites items from 30 to 300 yuan per jin (roughly 60–600 yuan per kilogram), with some novelty snacks and premium mixes fetching more than 300 yuan/kg. Viral social posts lampoon the trend: shoppers joke about needing to treat a trip to a nut counter like a trip to a jeweller, and influencers have nicknamed XuejiXueji Jewellery” on Xiaohongshu.

The industry’s transformation is not random. After the early 2000s e‑commerce boom created national snack brands such as Three Squirrels and Bestore, producers sought the next expansion. From about 2018, several chains embraced standardisation, digitisation and deliberate mall placements, upgrading packaging, in‑store service and product development. Xueji, which began as a roadside stall, turned a 2020 breakout hit — a milk‑date confection — into a lasting image shift, proving that a viral product could translate into premium positioning and higher margins.

Retail and marketing tactics have amplified the effect. Bright, giftable packaging, relaxed sampling and design‑forward fixtures make premium snacks easy to buy as gifts or for self‑indulgence. Brands now compete on store aesthetics, limited‑edition flavours and social media storytelling rather than only price. The result is a sector that combines long shelf life and familiar flavours with the consumer cues of luxury retail: exclusivity, amenity and Instagrammable presentation.

The numbers underpin the optimism. Industry estimates put the 2024 Chinese nuts and fried‑snack market above 3000 billion yuan, with forecasts pointing to roughly 4283 billion yuan within five years. Retailers point to rising raw material costs and category upgrades to justify higher prices; Three Squirrels, for example, announced a supplier price adjustment that took effect in November 2025. Still, purchase patterns show nuance: more than 80% of consumers report monthly spending between 20 and 100 yuan on these snacks, indicating the premium tier sits atop a broad base of everyday buyers.

That structural mix is a source of opportunity and risk. Premiumisation offers higher margins and more resilient retail formats than many perishable categories, but it increases exposure to fads and to consumer backlash when prices outrun perceived value. Analysts say product homogeneity is already a concern: more than half of surveyed Chinese consumers see too many similar offerings in snack boutiques. History offers cautionary parallels — brands that expanded on buzz alone have stumbled when quality, service or distinctiveness failed to keep pace with elevated price points.

For shoppers, the new landscape has produced behavioural adjustments: small scoops and sample tactics, weekend‑only splurges tied to credit‑card promos, or deliberate searches for cheaper alternatives. For brands and investors, the task is to sustain novelty and enforce quality controls while proving that premium prices buy more than packaging. The sector’s holiday season is a litmus test: if consumers accept the new norms it will validate a reclassification of a centuries‑old snack category into lifestyle retail; if not, the premium bubble could deflate quickly.

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