China - The Future of Foodservice to 2021

China - The Future of Foodservice to 2021

Summary

Chinese economy has seen strong growth with per capita GDP growing at around 8% between 2012 and 2016. Foodservice growth has been buoyed by an increase in urbanization: growing urban populations have increased the number of consumers that are able to visit foodservice outlets. Rapidly growing incomes have also increased the proportion of consumers who regularly visit foodservice outlets and the amount of discretionary income that consumers are willing to spend on foodservice.

Overall revenue in the Chinese profit foodservice sector grew at a CAGR of 5.7% between 2014 and 2016 to a total sector value of over CNY 7,700 Billion. Growth is forecast to continue forward to 2021 at a CAGR of 5.5%, this will result in a forecasted total sector value of over CNY 10,000 Billion by 2021.

Full Service Restaurant channel dominates the profit foodservice sector; the channel accounts for over 75% of all revenue in the profit foodservice sector. The majority of revenue in all major channels is attributable to independent operators and dine-in transactions, although chain operators and takeaway transaction revenue are forecast to grow faster to 2021 reflecting both consolidation and an increased focus on convenience transactions.

QSR is the second largest channel by revenue in the Chinese profit foodservice sector. The channel saw a CAGR of 5.5% between 2014 and 2016, and growth is forecast forward to 2021 at a CAGR of 5.0%. Growth in the channel is being driven by rising urbanization and strong growth in commercial construction.

Chinese coffee and tea shop channel has seen strong growth between 2014 and 2016 with a CAGR in channel revenue of 6.9%. Growth in the channel is forecast to continue to 2021 at a CAGR of 6.6%, outperforming the wider foodservice sector. China’s rapid development has benefitted operators in the channel. Growing urbanization is increasing the number of consumers who are able to visit outlets in the channel regularly.

Compared to other restaurant channels, the coffee and tea shop channel is relatively consolidated. Large players include international player Starbucks, and locally grown operators UBC, Liangan and DIO.

The report China - The Future of Foodservice to 2021 provides extensive insight and analysis of the Chinese Foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following analysis -

  • Overview of China's macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on China's foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops, Pubs, Clubs and Bars) within China’s foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Chinese population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the Chinese foodservice market.
Companies mentioned in this report: YumChina, McDonald's, Pala Catering Management, Hua Lai Shi, Suije Restaurant Group, Ting Hsin Group, Xiao Wei Yang, Xiao Nan Guo, Country Style Cooking, Beijing South Beauty, China Quanjude, Element Fresh, Starbucks, UBC Coffee, Zhejiang Liangan, RBT, Suzhou Dio, SPR Group, Shanghai Min, Little lamb, Pizza Hut, KFC, Dicos.

Scope
  • Technology is playing an increasing role in consumer’s interaction with foodservice operators in China. Operators that have successfully leveraged platforms such as Tencent WeChat have enjoyed greater consumer loyalty, brand awareness and increased consumer spending.
  • Health is becoming an increasingly important factor governing consumer’s choices in the foodservice sector. After repeated safety scandals, many consumers, especially wealthy parents are showing interest in the provenance of food.
  • Chinese consumers tastes have become increasingly sophisticated as incomes in the country continue to rise; there is clear demand for premiumized product options and a desire to try new flavors. Increased consumption of wine is a key example of a product category benefitting from this trend.
Reasons to buy
  • Specific forecasts of the foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops, Pubs, Clubs and Bars) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the Chinese foodservice market.


  • Introduction
    • REPORT GUIDE: MAIN SECTIONS
    • REPORT GUIDE: SUB-SECTIONS
    • EXECUTIVE SUMMARY
    • EXECUTIVE SUMMARY: CONSUMER TRENDS
  • MACROECONOMIC CONTEXT
    • MACROECONOMIC OVERVIEW
    • DEMOGRAPHIC OVERVIEW: POPULATION
    • DEMOGRAPHIC OVERVIEW: INCOME BANDS
  • INTRODUCING CONSUMER SEGMENTS
    • INTRODUCING CONSUMER SEGMENTS: CONSTRUCTING THE SEGMENTS
    • INTRODUCING CONSUMER SEGMENTS
    • INTRODUCING CONSUMER SEGMENTS: FRUGAL CONVENIENCE-SEEKERS
    • INTRODUCING CONSUMER SEGMENTS: TIME-POOR EXPERIMENTERS
    • INTRODUCING CONSUMER SEGMENTS: SPORADIC SPLURGERS
    • INTRODUCING CONSUMER SEGMENTS: REGIMENTED ROUTINERS
    • INTRODUCING CONSUMER SEGMENTS: INBETWEENERS
    • INTRODUCING CONSUMER SEGMENTS: KEY CHANNEL OVERVIEW
  • PROFIT SECTOR
    • PROFIT SECTOR METRICS
      • Table OVERALL PROFIT SECTOR REVENUE IS FORECAST TO CONTINUE TO SEE STRONG GROWTH
    • PROFIT SECTOR: VALUE AND SHARE BY CHANNEL
    • PROFIT SECTOR: VALUE GROWTH BY CHANNEL
    • PROFIT SECTOR: OUTLETS AND GROWTH BY CHANNEL
    • PROFIT SECTOR: TRANSACTIONS AND GROWTH BY CHANNEL
    • PROFIT SECTOR: OPERATOR BUYING VOLUMES AND GROWTH BY CHANNEL
    • PROFIT SECTOR: CHANNEL HISTORIC GROWTH DYNAMICS
    • PROFIT SECTOR: CHANNEL FUTURE GROWTH DYNAMICS
    • PROFIT SECTOR: RESTAURANT: OUTLET-TYPE GROWTH DYNAMICS
      • Table RESTAURANT OUTLET TYPES 2016 VALUE GROWTH
    • PROFIT SECTOR: RESTAURANT: TYPE OF OWNERSHIP GROWTH DYNAMICS
      • Table RESTAURANT OWNER TYPES 2016 VALUE GROWTH
  • QUICK SERVICE RESTAURANTS (QSR)
    • QSR: SUMMARY
    • QSR: METRICS: GROWTH DYNAMICS
      • Table THE QSR CHANNEL IS THE SECOND LARGEST IN THE CHINESE PROFIT SECTOR
    • QSR: KEY PLAYERS
    • QSR: KEY CONSUMERS: SEGMENT OVERVIEW
    • QSR: KEY CONSUMERS: FRUGAL CONVENIENCE SEEKERS
    • QSR: KEY CONSUMERS: TIME-POOR EXPERIMENTERS
    • QSR: KEY CONSUMERS: SPORADIC SPLURGERS
    • QSR: KEY CONSUMERS: REGIMENTED ROUTINERS
    • QSR: KEY CONSUMERS: INBETWEENERS
    • QSR: KEY CONSUMERS: OPPORTUNITY AREAS
    • QSR: WHY?
    • QSR: WHAT?
    • QSR: WHAT?: FOOD AND DRINK SPLITS
      • Table OPERATOR BUYER PRODUCT VALUE CNY MILLION (USD$ MILLION)
    • QSR: WHERE?
    • QSR: WHAT NEXT?
  • FULL SERVICE RESTAURANTS (FSR)
    • FSR: SUMMARY
    • FSR: METRICS: GROWTH DYNAMICS
      • Table THE CHANNEL HAS SEEN STRONG GROWTH THAT IS FORECAST TO CONTINUE
    • FSR: KEY PLAYERS
    • FSR: KEY CONSUMERS: SEGMENT OVERVIEW
    • FSR: KEY CONSUMERS: FRUGAL CONVENIENCE SEEKERS
    • FSR: KEY CONSUMERS: TIME-POOR EXPERIMENTERS
    • FSR: KEY CONSUMERS: SPORADIC SPLURGERS
    • FSR: KEY CONSUMERS: REGIMENTED ROUTINERS
    • FSR: KEY CONSUMERS: INBETWEENERS
    • FSR: KEY CONSUMERS: OPPORTUNITY AREAS
    • FSR: WHY?
    • FSR: WHY: ELEMENT FRESH CASE STUDY
    • FSR: WHY: WHAT TRENDS DID THE COMPANY TARGET?
    • FSR: WHY: WHAT DID THE BRAND/COMPANY DO TO TARGET THIS?
    • FSR: WHAT?
    • FSR: WHAT?: FOOD AND DRINK SPLITS
      • Table OPERATOR BUYER PRODUCT VALUE CNY MILLION (USD$ MILLION)
    • FSR: WHERE?
    • FSR: WHAT NEXT?
  • COFFEE AND TEA SHOPS
    • COFFEE & TEA SHOPS: SUMMARY
    • COFFEE & TEA SHOPS: METRICS: GROWTH DYNAMICS
      • Table THE COFFEE AND TEA SHOP CHANNEL IS RELATIVELY SMALL BUT IS GROWING RAPIDLY
    • COFFEE & TEA SHOPS: KEY PLAYERS
    • COFFEE & TEA SHOPS: KEY PLAYERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: SEGMENT OVERVIEW
    • COFFEE & TEA SHOPS: KEY CONSUMERS: FRUGAL CONVENIENCE SEEKERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: TIME-POOR EXPERIMENTERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: SPORADIC SPLURGERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: REGIMENTED ROUTINERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: INBETWEENERS
    • COFFEE & TEA SHOPS: KEY CONSUMERS: OPPORTUNITY AREAS
    • COFFEE & TEA SHOPS: WHY?
    • COFFEE & TEA SHOPS: WHY?: STARBUCKS CASE STUDY
    • COFFEE & TEA SHOPS: WHY?: WHAT TRENDS DID THE COMPANY TARGET?
    • COFFEE & TEA SHOPS: WHY?: WHAT DID THE COMPANY DO?
    • COFFEE & TEA SHOPS: WHAT?
    • COFFEE & TEA SHOPS: WHAT?: FOOD AND DRINK SPLITS
      • Table OPERATOR BUYER PRODUCT VALUE CNY MILLION (USD$ MILLION)
    • COFFEE & TEA SHOPS: WHERE?
    • COFFEE & TEA SHOPS: WHAT NEXT?
  • PUBS, CLUBS AND BARS
    • PUBS, CLUBS & BARS: SUMMARY
    • PUBS, CLUBS & BARS: METRICS: GROWTH DYNAMICS
      • Table THE PUB, CLUB AND BAR CHANNEL HAS BENEFITTED FROM INCREASED RATES OF URBANIZATION
    • PUBS, CLUBS & BARS: KEY CONSUMERS: SEGMENT OVERVIEW
    • PUBS, CLUBS & BARS: KEY CONSUMERS: FRUGAL CONVENIENCE SEEKERS
    • PUBS, CLUBS & BARS: KEY CONSUMERS: TIME-POOR EXPERIMENTERS
    • PUBS, CLUBS & BARS: KEY CONSUMERS: SPORADIC SPLURGERS
    • PUBS, CLUBS & BARS: KEY CONSUMERS: REGIMENTED ROUTINERS
    • PUBS, CLUBS & BARS: KEY CONSUMERS: INBETWEENERS
    • PUBS, CLUBS & BARS: KEY CONSUMERS: OPPORTUNITY AREAS
    • PUBS, CLUBS & BARS: WHY?
    • PUBS, CLUBS & BARS: WHAT?
    • PUBS, CLUBS & BARS: WHAT?: FOOD AND DRINK SPLITS
      • Table OPERATOR BUYER PRODUCT VALUE CNY MILLION (USD$ MILLION)
    • PUBS, CLUBS & BARS: WHERE?
    • PUBS, CLUBS & BARS: WHAT NEXT?
  • COST SECTOR
    • COST OPERATOR TRENDS: HISTORIC GROWTH
    • COST OPERATOR TRENDS: FUTURE GROWTH
    • COST OPERATORS: DATA BREAKDOWN
      • Table ALL COST SECTOR CHANNELS SAW GROWTH IN EXCESS OF 3.5% CAGR BETWEEN 2014 AND 2016
  • EDUCATION
    • EDUCATION: GROWTH DYNAMICS & DRIVERS
      • Table EDUCATION HISTORIC AND FUTURE VALUE GROWTH
    • EDUCATION: WHAT NEXT?
  • HEALTHCARE
    • HEALTHCARE: GROWTH DYNAMICS & DRIVERS
      • Table HEALTHCARE HISTORIC AND FUTURE VALUE GROWTH
    • HEALTHCARE: WHAT NEXT?
  • MILITARY AND CIVIL DEFENSE
    • MILITARY AND CIVIL DEFENSE: GROWTH DYNAMICS & DRIVERS
      • Table MILITARY AND CIVIL DEFENSE HISTORIC AND FUTURE VALUE GROWTH
    • MILITARY AND CIVIL DEFENSE: WHAT NEXT?
  • WELFARE AND SERVICES
    • WELFARE & SERVICES: GROWTH DYNAMICS & DRIVERS
      • Table WELFARE AND SERVICES HISTORIC AND FUTURE VALUE GROWTH
    • WELFARE & SERVICES: WHAT NEXT?
  • APPENDIX
    • TRADE AND SECTORS DEFINITIONS
    • CHANNEL DEFINITIONS
    • OTHER DEFINITIONS
    • KEY COMPONENTS - MARKET INTELLIGENCE

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