SHANGHAI: Grupo Bimbo, a Mexican multinational food company, is deepening its footprint in China with significant investments and strategic initiatives aimed at capitalising on the country’s massive market potential and signalling optimism about its long-term development.
Bimbo China general manager Kelly Zhang said that the company experienced a marked improvement in profitability in the past year and is confident that its efforts in China will continue to bear fruit.
“We made a big improvement in profitability versus a year ago. The contribution to Grupo Bimbo globally is solid,” Zhang said.
Following its entry into the Chinese economy in 2006, Bimbo now owns 10 factories across the country and invested over US$70mil in China in 2023 and 2024.
Zhang pointed out that despite challenges, China remains an attractive market.
“With 1.4 billion people and a growing demand for bakery products, there’s still a lot of room for growth,” she said.
“Per capita bakery, consumption in China is much smaller compared to Japan or the United States, which means there’s huge potential here.”
Bimbo expects to continue its positive trajectory, forecasting double-digit growth in sales and a solid profit increase for 2025.
“Our share in global Bimbo will become bigger,” Zhang added.
Data from the National Bureau of Statistics showed that the consumer confidence index for China has remained below 100 over the past few years, pointing to persisting pressures from lacklustre consumer demand.
The consumer confidence index ranges from zero to 200, with 100 representing a neutral stance.
While China’s broader economy is still facing challenges posed by still-weak consumer confidence and uncertainty surrounding global economic conditions, Zhang said she believes the country’s intensified efforts to stimulate consumption will help fuel growth and stabilise the overall economy.
“The government is taking proactive steps to support consumption.” — China Daily/ANN
