From Sunflower Seeds to Status Symbols: China’s Roasted‑Nut Shops Go Luxury — and Risk a Backlash

China’s traditional roasted‑nut and dried‑fruit shops have been transformed into premium retail experiences with polished stores, viral products and hefty price tags, led by brands such as Xueji. The sector’s growth is driven by packaging, product innovation and digital marketing, but rising prices and perceived homogeneity risk a consumer backlash even as market size continues to expand.

A detailed view of roasted candied almonds on a baking sheet, showcasing their crunchy texture.

Key Takeaways

  • 1Roasted‑nut chains in China have repositioned themselves as premium, mall‑based retailers with prices often between 30–300 yuan per jin (≈60–600 yuan/kg).
  • 2Brands such as Xueji used product innovation and social‑media virality to move snacks into a lifestyle category and justify higher margins.
  • 3The market is large and growing — about 3000 billion yuan in 2024 with forecasts to roughly 4283 billion yuan in five years — attracting investment and competitive expansion.
  • 4Higher prices, copycatting and perceived product homogeneity create reputational risks and raise the prospect of consumer pushback.

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Strategic Analysis

The premiumisation of roasted nuts illustrates a broader theme in China’s consumption upgrade: everyday categories can be scaled into lifestyle brands if companies invest in supply‑chain quality, design and storytelling. Yet growth here is structurally vulnerable — to rising input costs, to the dilution of scarcity as chains expand, and to a shifting consumer mood that prizes value as much as experience. Successful players will need to balance innovation and geographic expansion with disciplined quality control and price justification, or risk rapid reversals when consumers start to ask whether they are buying taste, convenience or merely a brand name.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

In shopping malls across China, a small, familiar shop has quietly been recast as a temple of taste and conspicuous consumption. What used to be a street‑corner stall selling sunflower seeds and peanuts has been rebadged, repriced and repositioned: polished counters, glossy packaging, free tastings and price tags that read more like jewellery than snacks. Walk into a popular chain today and you can encounter prices ranging from roughly 30–300 yuan a jin (about 60–600 yuan per kilogram, $8–$85/kg), with some boutique items advertised at above 300 yuan/kg.

The phenomenon has a face: Xueji (薛记), nicknamed online as the “roasted‑nut jewellery store,” whose social‑media cachet has made it a shorthand for the sector’s premium turn. Posts on Xiaohongshu and other platforms chronicle shoppers’ astonishment and create a feedback loop of curiosity and aspiration — and, increasingly, incredulity. Other mall staples such as Qiwang, Yili‑style newcomers and long‑standing regional sellers have followed, upgrading store design, packaging and product assortments to chase middle‑class buyers seeking quality, novelty and “joyful” consumption.

The shift is not merely cosmetic. Since about 2018 a cohort of snack brands embraced systematic, standardized and digital operations, moving from roadside stalls and small workshops into shopping centres and shopping apps. Innovation has focused on product breadth — candied fruits, dairy‑infused sweets, and hybrid snacks — and on marketing rhythms that create short, intense “explosion” products that can sell out and generate buzz. Xueji’s 2020 reinvention culminated in a runaway dairy‑date product that went viral and helped finance a broader repositioning of the chain as a lifestyle brand.

Economic forces have reinforced the strategy. The roasted‑nuts and dried‑fruit category benefits from relatively long shelf life and a lower perishability risk than many fresh formats, giving retailers flexibility in inventory and margin management. Industry data show the category’s market has expanded rapidly: the market for China’s nuts and roasted snacks breached 3000 billion yuan in 2024 and is forecast to reach about 4283 billion yuan within five years — a secular growth story that attracts capital, real‑estate spend and product experimentation.

That expansion explains why operators are willing to treat store real estate, merchandising and sampling like luxury retail. But the premiumisation comes at a cost: higher retail prices, amplified expectations and greater exposure to reputational risk. Many shoppers who once treated roasted nuts as cheap, social food now report cognitive dissonance at paying sums that rival a mid‑range meal. Consumer reactions have ranged from bemused thriftiness — tiny scoops, gloved sampling, and hunting for lower‑priced alternatives — to public mockery on social platforms.

Retail dynamics heighten the stakes. Brands that win by creating scarcity, novelty and demonstrable quality can command price premiums, but copycats and rapid retail expansion threaten that exclusivity. Analysts and industry reports note growing concerns about product homogeneity and the difficulty of sustaining fast innovation across a proliferating roster of SKUs. Meanwhile, rising input costs, inflationary pressure and deliberate price adjustments — Three Squirrels announced supply‑price hikes for some lines from November 2025 — mean consumers are confronting still more frequent sticker shocks.

There are precedents for the backlash that premiumisation invites. Chinese food and beverage brands that pushed prices beyond consumers’ perceived value have, at times, encountered sudden reputational and revenue contractions. If roasted‑nut retailers fail to keep product quality, service standards and novelty aligned with price, they risk being judged expensive rather than desirable. For now, however, the category’s everyday penetration is notable: surveys show most buyers spend modest sums monthly (20–100 yuan) and purchase nuts regularly, suggesting premiumisation coexists with habitual, mass consumption.

For observers of China’s consumer economy, the roasted‑nut story is a useful microcosm. It demonstrates how an ordinary, low‑margin category can be reimagined through branding, retail design and social media, and how that reimagining depends on coherent supply‑chain upgrades and product innovation. It also underscores the fragility that accompanies rapid commercial success: when everyday comforts are reframed as status goods, the risk of a corrective reaction from thriftier or value‑hungry consumers is never far away.

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