China's baking, tea beverage sectors show strong growth: Report

TAGS: | UPDATETIME: 2023-10-16

China's baking and tea beverage sectors are showing strong growth with significant increases in average revenue per outlet, according to an industry report jointly published by the China Hospitality Association and Xinhuanet on October 13.

The report, titled the "2023 National Catering Industry Report", tracks major trends across the Chinese food and beverage industry, Securities Daily reported on Sunday.

Specifically, Xinjiang Uygur autonomous region leads in the increase in average revenue per tea beverage outlet and Shanxi province boasts the highest number of new tea beverage shops.

While in the baking industry, Hunan province stands out for the highest earnings per shop, and Tianjin has the most new baking shops.

The report includes annual statistics of the Chinese catering industry, an analysis of industry's operations and high-quality development case studies.

It covers a variety of businesses, including private, State-owned and foreign-invested enterprises, both domestic and international, which operate in formats such as full-service restaurants, hot pot, group dining, tea beverage outlets and others.

The report includes provincial and regional development indices for key sectors in the catering industry. These indices reflect the developments in local revenue and the number of outlets for specific types of food and beverage establishments.

In 2022, the full-service restaurant, fast food and barbecue sectors showed stable growth, with modest increases in both average revenue per outlet and the number of outlets.

Hainan province saw the highest growth in barbecue restaurant revenue, while Hubei province recorded the highest growth in the number of barbecue outlets.

The report also highlights key trends from the previous year, including a surge in consumer demand for pre-made dishes, with sales steadily increasing.

Sales of pre-made meal products have shown a steady growth trend year by year, with demand in the consumer market seeing rapid growth, according to data from Alibaba's local life division. Pre-packaged meals have also shown seasonality in demand.

Several regions across the country promoted the pre-made meal industry through supportive policies and industry standards.

Nearly 70 industry standards were introduced in the pre-made dishes sector in 2022, according to the report.

As a result of the interplay between market dynamics, policy support and industry standards, the pre-made meal industry is expected to be further well regulated.

Regarding the future strategic plans and business outlook of catering enterprises, the survey results in the report shows that the top focus for these companies is brand development, accounting for 73.1 percent. Supply chain expansion and digitalization follow closely behind at 65.6 percent and 59.1 percent, respectively.