Market Trends of China Foodservice Industry
Augmented Demand for Vegan Food in Restaurants
Consumers in China are becoming more health aware that their needs for healthier substitutes for a wide range of consumer goods have strongly impacted the Chinese food and beverage sector. When China had less food security, meat was treated as the most important and famous eating food. But the times are changing, and Chinese people are noticing the negative side of eating an abundance of meat. Nowadays, health and weight concerns are the main reasons Chinese people reduce their meat intake and enhance the consumption of vegan food options in restaurants.
Although some European countries and the United States are showing faster growth, China is one of the largest consumers of vegan meat, representing about one-fourth of the world's market. The top-selling brand of plant-based meat La Mian Shuo collaborated with Vesta Food's brand HUICUI to introduce a plant-based pork option, and Nestle's Harvest Gourmet brand has also performed exceedingly well. They accounted for the highest number of sales in the plant-based meat sector. Thus, all such factors are supporting market demand and growth in the Chinese foodservice market.
Home Delivery Channel is the Fastest Growing Segment
Consumers have distinct regional and international food and flavor preferences in China. Restaurants in China serve local cuisines which dominate the market. However, western cuisines are becoming popular in Tier 1 cities. The demand for high-quality products is rising among consumers in China with increasing disposable income and the chain establishments have centralized purchasing points and now source ingredients from local distributors.
Furthermore, more affluent consumers in the country now spend more on dining out. Thus, upscale restaurant operators benefit from such consumer spending and more from the upliftment of travel restrictions in the country. Consumers are now opting to spend more money on premium dining for business and are paying for quality and international dining experiences.
Food delivery is also witnessing an increase as online ordering has reduced customer waiting time. The use of new technology is thriving in the Chinese food industry, with foodservice operators using e-menus, online reservations, mobile ordering, and payment apps. Many players in China are partnering with third-party websites, such as Ele.me, Fanting.com, and Waimaichaoren.com, which provide full menus from various restaurants and ordering and home delivery food services with the rise in the advent of digitalization. Independent restaurants offering home food delivery are also quickly gaining popularity in China, especially among busy urbanites, and may become an important service. Thus, all these factors are fueling market demand and growth in the Chinese foodservice market over the years.
