Cookie cutters

	Shanghai Himmers offers model HB213, heart-shaped baking molds in pure food-grade silicone.

As the global economic slowdown dampens export profitability, bakeware suppliers in China are exercising measures to invigorate revenue growth.

To counter the projections of a 10 percent sales decline in 2009, most companies raised product prices by 5 to 10 percent in 2008. Others are likely to do so in coming months to improve margins. Some makers, on the other hand, are planning to maintain or even slash quotes should the price of oil continue its descent.

Bakeware suppliers are also exploring business opportunities in South America, Asia and the Middle East to offset sluggish demand from the US, their major market in the line. While these emerging export destinations may not be as lucrative as the US or Europe, orders from the regions can help cushion the slump.

Further, makers are slashing overhead expenses by improving management systems, saving on electricity and water consumption, and limiting overtime work.

About 60 percent of China’s exports of cake, muffin and loaf pans, baking sheets, pans and trays, and cookie and pastry tools are in food-grade silicone. The rest comes in metal.

More suppliers favor the former because of its ease of use, flexibility and natural nonstick property. Typically, the material can be utilized for baking at temperatures ranging from -40 to 230 C. Some upscale models may even withstand 280 C. Most products are safe in microwave ovens, freezers and dishwashers.

China companies employ both locally sourced and imported silicone. Shanghai Himmers Industrial & Trading Co. Ltd purchases the material from Dow Corning of the US and Germany’s Wacker.

A 4 to 5g muffin mold is priced at about $0.06, while a 2kg giant cake version can go for up to $30 per piece.

Most bakeware designs in the metal segment are cookie trays and sheets, and loaf pans. The popular materials used are stainless steel, and regular or cast aluminum and iron.

Low-end releases are made of 0.4 to 0.5mm-thick domestically sourced iron. These have local nonstick coating on the interior and heat-resistant paint on the exterior. The life span is two to three years. Products are usually small in size and priced from $0.70 to $2.

Midrange models are mainly constructed from 0.3 to 3.8mm-thick aluminum with Teflon or Whitford nonstick coating. Going for up to $7 each, designs can withstand baking temperatures exceeding 280 C.

High-end models are in 0.5 to 0.8mm-thick stainless steel procured in Taiwan or the mainland. The most-expensive releases come in grade 304, while less costly versions utilize types 201 and 202.

Designs are mirror- or sandpolished, and boast strong resistance to heat. Some products can be used safely in a 480 C oven.

Teflon remains the popular nonstick coating adopted by bakeware suppliers, particularly midsize and large ones. Several makers are applying Whitford’s Quantum 2, Xylan and Eclipse, which are also being employed by Cuisinart and All-Clad for their specialty cookware.

Normally, water-based PTFE coating is used for aluminum bakeware designed to withstand up to 480 C. The oil-based version, on the other hand, is suitable for iron and aluminum models that can bear 280 C.

Most China companies submit coating materials to third-party laboratories for safety and quality testing.

The R&D teams of bakeware suppliers in China are launching new shapes and colors for cake molds, and enhancing the durability of cookie sheets and trays.

Apart from traditional round and rectangular baking pans, makers are raising their output of heart, flower, castle and cartoon character molds. In terms of colors, blue, red, pink and yellow are still the best-sellers.

In addition, well-established companies are seeking alternative materials to enhance product performance.

For instance, more suppliers are now combining silicone oil and electrostatic powder coating. Besides lending better nonstick properties, this fusion prevents absorption of food odor and accumulation of dust. It also gives pure silicone designs greater durability.

Moreover, some of the latest silicone releases come with nonstick metal racks that provide greater support at the base.
Industry composition

The number of bakeware makers in China is estimated at 3,500. Most of them are locally owned and based in Guangdong and Zhejiang provinces, where 60 percent of the country’s total exports in the line originate. Shipments from Jiangsu province and Shanghai account for the rest.

Small suppliers usually have annual sales of $1 million to $3 million and a workforce of no more than 200. Many of them have limited R&D capability and cater to the low-end and midrange markets.

Midsize suppliers can generate sales of up to $8 million and have 100 to 200 employees.

Large makers boast revenue exceeding $10 million and a staff size of more than 200.

OEM orders still dominate China’s bakeware exports, with buyer-specified designs making up about 70 percent of shipments.