Unwrapping zongzi – a lucrative seasonal delight

Almost every Chinese festival is paired with a traditional food item. Dumplings are enjoyed during the Spring Festival, while mooncakes are reserved for the Mid-Autumn Festival. And zongzi, a type of sticky rice dumpling, is a must during the Dragon Boat Festival, embodying the symbolism and seasonality of food in Chinese culture.

According to the 2024 China Zongzi Industry Consumption and Brand Status White Paper released by the China Data Research Center, the total market volume of zongzi is expected to increase by 8 percent in 2024, driven by extended consumption periods and the influence of the gift giving and cultural tourism economies.

For the first time, the market size of zongzi will reach 10.3 billion yuan (about $1.45 billion), with estimates putting the number past 11 billion yuan by 2025.

From river offerings to festive delicacies

Glutinous rice dumplings, according to legend, were thrown into rivers as offerings to the poet Qu Yuan, who drowned himself in 278 B.C. Over time, zongzi became officially associated with the Dragon Boat Festival, evolving into a festive delicacy and a seasonal staple.

Each region in China has its unique flavors and recipes for zongzi. In northern China, zongzi fillings are often sweet, typically featuring red bean paste. In the southern parts of the country, the fillings tend to be savory, incorporating ingredients like pork, sausage, and salted egg yolk.

The difference of zongzi flavors is due to variations in available ingredients and eating habits across the regions of China. Southern residents favor meat and sausage, with the southeast coastal areas being particularly rich in seafood. Meanwhile, the northern regions of China, which are abundant in dates, typically feature dates and red beans as stuffings for zongzi.

Nowadays, with increased travel and a growing willingness to try new things, regional taste differences have narrowed, big data analysis by China Media Group indicates.

Vying for younger generation's attention

Zongzi is not just a delicacy but also a symbol of food evolution. Despite its seasonal nature, zongzi has solidified its position as a beloved national food, especially among the young generation.

China has been seeing a surge in young consumers' interest in domestic brands and products that incorporate Chinese traditional elements and culture. This trend has propelled zongzi into the limelight among the youth demographic. From innovative product development to marketing strategies, time-honored brands are navigating the transition from tradition to modernity.

Based on data from online shopping platform Taobao, the post-2000s generation has shown a remarkable increase in zongzi orders, soaring by 113 percent compared to last year over the past 90 days. Among their preferences, novelty flavors stand out as a particular favorite among young consumers.

This year, newly introduced products such as zongzi filled with spicy snacks and fish gelatin have witnessed sales growth of over 100 percent compared to the previous year. This generation exhibits a dual inclination: a penchant for diverse flavors alongside a commitment to health. Notably, their enthusiasm for "healthy zongzi," crafted with sprouted brown rice, has driven sales by over 300 percent on an annual basis.

In an effort to appeal to a younger demographic, tradition is intersecting with innovation. Through collaborations with iconic brands like Disney, Marvel and other domestic IPs, the zongzi store Wu Fang Zhai orchestrated a series of seemingly unconventional strategies, ultimately paving the way for its IPO in 2022. The same year, PepsiCo partnered with local zongzi brand "Zhenzhen Lao Lao" to launch a gift box featuring cola-flavored zongzi. Pepsi introduced an exclusive "Coke rice soaking technology" for the glutinous rice used in the product.

New trends: eating with the 24 Chinese solar terms

Seasons in China are more fluid than the simple progression of months. It's a dynamic system deeply intertwined with cultural practices, guiding everything from planting, harvesting and eating. This tradition of seasonal eating has been ingrained in Chinese dining for millennia.

In recent years, e-commerce platforms have been tapping into the allure of seasonal eating, intensifying the festive consumption atmosphere by repeated marketing campaigns.

Since 2022, food delivery platform Ele.me has launched various co-branded and IP-related products, making many seasonal delicacies increasingly popular. It also introduced a seasonal food channel, releasing different foods for various festivals and seasons. For instance, during the Laba Festival, Ele.me collaborated creatively with the Shaolin Temple, moving the scene of blessing Laba porridge from offline to online.