Since 2026, the global baking industry has been advancing steadily toward high-quality development. Amid the continuous industrial upgrading, dynamic adjustments have taken place across the global baking supply chain, logistics and energy sectors—trends that have been widely discussed and shared at the Baking Exhibition to facilitate industry synergy. At the same time, the continuous release of policy dividends has injected strong impetus into industrial growth.

The structural optimization of the global shipping market, together with the official implementation of China’s zero-tariff policy for Africa, has formed a two-way empowering pattern. It encourages domestic baking enterprises to proactively optimize development strategies, expand market space, and achieve dual breakthroughs in quality improvement and cost optimization through supply chain upgrading. This momentum is leading the entire baking industry into a new stage of greater resilience and vitality, which has become a key highlight shared among professionals at the Baking Exhibition.

In early May, the global shipping market ushered in a new round of adjustment. On May 8, three leading global shipping companies—Maersk, MSC and CMA CGM—jointly released announcements to adjust freight rates on major routes starting from May 15. The coverage includes key trade lanes from Asia to Europe, the Mediterranean, North America and the Red Sea.

Specifically, freight rates for Asia-Europe routes will rise by 300 to 500 euros per TEU; Asia-North America routes will increase by 200 to 300 US dollars per TEU; and the Red Sea route sees the largest increase, up to 700 US dollars per TEU. The adjustment is mainly driven by fluctuations in international fuel prices and reasonable war risk surcharges amid evolving Middle East geopolitical situations, representing a normal market adaptation by the logistics sector to maintain stable global shipping services.

The domestic baking industry has demonstrated strong adaptability and proactive capability amid the latest freight adjustments. Industry insiders noted that the rate revision is a rational market change in response to global trends. Baking enterprises are actively responding by optimizing procurement layouts, refining logistics solutions, and deepening long-term strategic cooperation with shipping carriers.

For imported raw materials and equipment widely used in the domestic market, including dairy products from France and New Zealand, high-end baking machinery from Germany and Italy, as well as vegetable oil and cocoa materials from Southeast Asia, companies are adopting centralized procurement, long-term framework agreements and multi-route allocation strategies to hedge short-term cost fluctuations. The landed prices of related imported products are expected to see a moderate fluctuation of 4% to 6%, remaining fully within the industry’s affordable and controllable range.

In fact, the domestic baking industry has long embarked on the path of supply chain optimization and upgrading. Facing evolving global raw material markets, local enterprises have taken initiative to strengthen supply chain management, diversify procurement sources, implement intelligent inventory control, and increase investment in technological research and production innovation. Such efforts have improved raw material utilization efficiency, achieved refined cost reduction, and laid a solid foundation for coping with global market changes.

While the industry is actively adapting to market dynamics, a major policy dividend has brought new growth opportunities to the baking sector. On May 8, China’s first batch of zero-tariff cocoa beans from Africa successfully completed customs clearance. Consisting of 2,000 tons sourced from Côte d’Ivoire, the shipment recorded a cost reduction of 9.2% compared with previous import levels. The cocoa beans will be applied to the production of chocolate and filled bakery products across the domestic market.

This landmark event marks the official implementation of China’s Africa zero-tariff policy within the baking industry, opening a brand-new chapter for stable raw material supply and diversified procurement layouts. Industry practitioners also widely recognized this breakthrough at the Baking Exhibition as a vital step to reshape the global raw material sourcing landscape.

Since May 1, 2026, China has officially implemented zero tariffs on all tariff items originating from 53 diplomatic African partner countries. The policy covers a wide range of baking essentials, including cocoa beans, coffee beans, nuts and sesame seeds. Previously subject to import tariffs of 8% to 10%, these African raw materials now enjoy full tariff exemption, effectively lowering overall procurement costs and creating a new low-cost, high-quality supply channel for domestic baking manufacturers.

The zero-tariff initiative not only delivers tangible cost benefits to enterprises but also promotes structural upgrading of the baking supply chain. Africa has long been a core origin of high-quality cocoa and coffee resources. For a long time, its premium raw material market was dominated by European and American enterprises, limiting direct access for Chinese buyers.

With the introduction of zero tariffs, the traditional market pattern has been optimized. Domestic baking companies can now directly connect with high-quality African producing regions at more competitive prices, securing premium raw materials to enrich product categories and upgrade overall product quality.

Furthermore, the policy has built a solid bridge for industrial cooperation between China and Africa, achieving mutually beneficial and win-win development. Growing procurement demand from Chinese baking enterprises will further drive standardized agricultural development in Africa, helping local producing regions upgrade cultivation, processing and industrial supporting capabilities.

Personnel from a leading domestic chocolate and baking manufacturer commented that the zero-tariff policy enables direct sourcing from African cocoa origins, bringing nearly 10% cost reduction while ensuring stable and superior raw material quality. The move not only enhances corporate product competitiveness but also contributes to the sustainable development of African local industries.

Beyond cocoa beans, African coffee beans are also gaining wider market access under the zero-tariff framework. High-quality origins such as Ethiopia and Uganda have gradually increased exports to China. After customs clearance and deep processing including roasting and extraction, these premium coffee resources are being transformed into high-end baking ingredients and consumer products, enriching domestic flavor diversity and driving the high-end and diversified development of China’s baking market.

Customs authorities have also optimized clearance procedures, fully releasing policy dividends, lowering comprehensive import costs, and providing efficient service guarantees for African raw material imports.

Industry experts believe that the zero-tariff policy will further deepen industrial cooperation between domestic baking enterprises and African producing regions. As supply chain channels continue to improve, more high-quality African baking raw materials will enter the Chinese market, enriching the domestic supply system and supporting continuous product iteration and innovation. Meanwhile, Chinese baking enterprises will accelerate international layout, enhance discourse power in the global industrial chain, and promote the global influence of China’s baking industry.

Faced with both global shipping adjustments and historic policy dividends, domestic baking enterprises are seizing development opportunities and optimizing strategic layouts. Companies are increasing R&D investment, upgrading product structures, and developing innovative items featuring high-quality African raw materials to boost product added value. They are also strengthening in-depth cooperation with logistics providers and raw material suppliers, building efficient, stable and resilient supply chain systems to support long-term high-quality industrial growth.

From a broader industrial perspective, global supply chain evolution and policy dividends are driving a new round of upgrading across the baking sector. Freight adjustments are encouraging enterprises to improve refined management and operational efficiency, while the zero-tariff policy strongly supports cost reduction and channel expansion. Together, these factors are helping the industry reduce reliance on traditional raw material origins and build a diversified, high-quality and resilient global supply chain layout.

Looking ahead, as domestic baking enterprises continue to enhance core competitiveness, optimize supply chain arrangements, and fully leverage policy dividends to deepen cooperation with global high-quality producing regions, China’s baking industry will embrace broader development prospects. The sector will gradually form a development pattern featuring quality priority, diversified layout and win-win global cooperation. It will not only meet consumers’ growing demand for high-quality and diversified baked goods, but also further consolidate China’s important position in the global baking industry, writing a new chapter of high-quality and sustainable development for the whole sector.

Bakery China 2027 will continue to share more industry professional content with you, so please stay tuned!

Bakery China 2027, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 2027 is the Asia Pacific’s leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry. It is the first-choice trade fair to enter China’s bakery market.

The 2026 ASEAN International Bakery Exhibition (Bakery ASEAN), will be held on August 27-29 at JIExpo (Jakarta, Indonesia), co-located with renowned WEPACK Indonesia, Cafe Show Indonesia held by Reed Exhibitions Group, is a premier trade event focusing on the bakery and related industries in ASEAN and global markets. the shows will be covering 20,000 square meters, expecting more than 500 exhibitors and 50,000 professional buyers including distributors, imports and exports, manufacturers, chain stores, supermarkets, convenient stores, hotels and cafes, etc. from not only the ASEAN but also the rest of the world.

Source: Tokyo Baking Professional