Grupo Bimbo bullish about business in China, to expand investment

Mexican multinational food company Grupo Bimbo is doubling down on its long-term commitment to China, citing the country's vast consumer base, improving domestic demand and clear policy direction as key drivers for sustained investment and expansion.

"We are full of confidence in the long-term potential of China's consumer market," said Kelly Zhang, general manager of Bimbo China. "Grupo Bimbo will continue to leverage its global leading research and development capabilities and localized operations to deliver higher-quality products and services, and to honor our commitment to consumers."

With a population of around 1.4 billion, China offers what Zhang called "unparalleled potential" for the bakery industry. She said government efforts to stimulate domestic consumption have already begun to show positive results.

"Looking forward, we believe that domestic consumption in China will gradually recover," Zhang said. "This will give Bimbo confidence to deepen investment in China, helping speed up geographic expansion and category expansion in the market. With the right strategies and implementation plans, Bimbo China will improve its profitability, enabling the company's reinvestment into the Chinese market for stronger capabilities in innovation and manufacturing."

The company entered China in 2006 and now operates 10 factories across the country. Between 2023 and 2024, Grupo Bimbo invested an additional $72 million in China, underscoring what the company describes as strong confidence in the market's long-term potential.

Reflecting on China's long-term growth trajectory, Zhang highlighted the economy's resilience. "If you look back, China grew dramatically during the past 40 years. It's not an easy journey," she said. "We are also facing multiple opportunities and challenges from time to time, but China still grew in a majority of those years. Several years ago, we already became the second-largest economy in the world. As long as there is a clear direction, the Chinese government can put all the resources or energy together and create miracles."

She added that policy clarity remains a key source of confidence for foreign businesses. "I think the government has a very clear direction, how to drive consumption, drive demand, focus on high quality and so on. We will fully embrace that direction, and we would like to offer better innovation and products to consumers and create value for this market."

According to the recommendations for formulating the 15th Five-Year Plan (2026-30), over the next five years, China should see that the economy keeps growing within an appropriate range and achieve a notable increase in household consumption as a share of GDP.

Wang Wei, a senior researcher and former director of the Institute of Market Economy at the Development Research Center of the State Council, said domestic demand is set to become an even more important driver of growth, and that she expects China's annual final consumption expenditure to exceed 90 trillion yuan ($13 trillion) during the 15th Five-Year Plan (2026-30) period.

In fact, product localization remains central to Bimbo's strategy. In response to changing consumer tastes, Bimbo China has continued to invest in local innovation. The company has expanded into the snack segment with the launch of Dozi, filled biscuits, offering not only traditional chocolate flavor but also more adventurous spicy and mustard options aimed at younger consumers seeking novelty.

Health and nutrition are another focus area.

Bimbo has rolled out multiple whole-grain products in China, and this year its Mankattan brand introduced a ciabatta bread made with imported sourdough and olive oil, containing less than 2 percent added fat and no added sugar. The product has gained in popularity among fitness enthusiasts and consumers seeking weight management options, and was recently selected for the "So Health 2025 Food & Nutrition Innovation Top List", an industry recognition of its nutritional innovation.

Bimbo also said it has benefited from China's continued push for high-level opening-up. The Mankattan Beijing has been accredited as a "Foreign-Invested R&D Center" by the Beijing Municipal Science and Technology Commission and Administrative Commission of Zhongguancun Science Park this year, a move Zhang said "strengthens global Bimbo's confidence in further capital injection to build local R&D innovation capabilities".

"We have sensed more practical support from the local government for Bimbo China," Zhang said. "Moving forward, we expect tighter cooperation with related institutions to create more opportunities, serving consumers better."

ouyangshijia@chinadaily.com.cn