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Grupo Bimbo bullish on China's market potential

Mexican MNC food firm deepens its footprint with strategic initiatives

By OUYANG SHIJIA | China Daily | Updated: 2025-03-03 10:15
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Runners seen at the starting point of the Bimbo Global Race 2024 at Beijing Olympic Park on Sept 28. [CHINA DAILY]

Grupo Bimbo, a Mexican multinational food company, is deepening its footprint in China with significant investments and strategic initiatives aimed at capitalizing on the country's massive market potential, signaling optimism about the country's long-term development.

Kelly Zhang, general manager of Bimbo China, emphasized that the company has 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 noted. Following its entry into the Chinese mainland in 2006, Bimbo owns 10 factories across the country and invested over $70 million 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. Per capita bakery consumption in China is much smaller compared to Japan or the United States, which means there's huge potential here," she said.

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 during the past few years, pointing to persisting pressures from lackluster 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 stabilize the overall economy. "The government is taking proactive steps to support consumption."

Looking ahead, Zhang said she believes the upcoming two sessions will focus on driving consumer confidence and demand. Two sessions refer to the annual meetings of China's top legislative and political advisory bodies.

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