China’s food and drinks sector is booming on the back of rising demand from the country’s rapidly expanding middle class, the increasing popularity among young professionals for eating out and surging demand for online delivery services.
National Bureau of Statistics data show that nationwide catering revenue rose by 9.4% y-o-y in H1 2019 after registering US$628 billion for the whole of last year – a figure equivalent to 11.2% of China’s consumer goods sales. Frost & Sullivan forecasts that annual revenue could approach the US$1 trillion mark by 2023.
The rapid growth in the food and drinks sector has occurred alongside a dramatic shift in the country’s eating and drinking habits and the emergence of an increasingly adventurous and demanding consumer base. This is spurring demand for new F&B products, formats and delivery systems – trends which all have significant implications for retail real estate.
This report examines the latest F&B trends in China and provides key insights for F&B retailers looking to deepen or establish their footprint in the world’s largest food and drinks market.