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The Channel market value (OSP) of the foodservice industry in China (2020 - 2028, USD million)

Industry: Foodservice
Current: Market Sizing & Shares

The Channel market value (OSP) of the foodservice industry in China reached USD 930,839.05 million in 2023
The indicator recorded a historical growth (CAGR) of 7.07% between 2020 to 2023 and is expected to grow by ...
GlobalData projects the indicator to grow ...

The Channel market value (OSP) of the foodservice industry in China (2020 - 2028, USD million)

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China foodservice market analysis

The Chinese foodservice profit sector declined during 2015 –2020. The decline in the foodservice profit sector was attributed to the substantial reduction in the number of transactions in 2020 due to the closure of restaurants, cafés, and bars amid the COVID -19 pandemic. Takeaways and deliveries played a crucial role in mitigating the losses of foodservice businesses due to convenience and digital and technological advancements Independent operators dominate the profit sector, however, chain operators fared better than independent operators during the pandemic in the QSR and coffee & tea shop channel owing to quick adaption to changing consumer demands. During 2020 –2025, China’s profit sector is forecast to record double-digit growth, primarily thanks to an increase in transactions.

Quick service restaurants: The QSR channel value decline in 2020 was mainly driven by the government-mandated lockdowns amid the pandemic, which resulted in a fall in visits to the channel. However, operators shifted their focus on off-premises sales to stay afloat on the back of technological and digital capabilities. Operators innovated with their menus and included options better suited for takeaways such as meal kits and ready-to-heat food options. Takeaway transactions are anticipated to record strong growth during 2020 –2025.

Full-service restaurants: FSR is the largest channel in the Chinese profit sector, FSR experienced a contraction during the review period. The ban of non-essential gatherings along with stringent physical distancing regulations hampered the channel’s sales in 2020 owing to the COVID-19 crisis. The fear of getting infected changed food consumption patterns among Chinese consumers, which contributed to a decline in the channel’s sales during the review period; more consumers preferred cooking their meals at their homes. Home deliveries played an important role during the pandemic, with more consumers preferring to get their food delivered to their homes, owing to the fear of getting infected by the coronavirus.

Coffee & tea shop: The coffee & tea shop channel registered a sales growth during 2015–2020. However, the channel is expected to accelerate by 2025, primarily due to rising average transaction prices. The channel was also impacted by the growing health trend in the country and operators are expected to introduce healthier options. For instance, Starbucks added plant-based and non-dairy milk options its menu while Nayuki claims to use fresh and high-quality ingredients.

Pub, club & bar: The channel registered a decline during 2015–2020 due to the restrictive lockdown in 2020. However, the channel is expected to grow during the forecast period. The market was heavily fragmented in China and dominated by independent operators as there were no major pub, club & bar chains in China. A significant rise in-home consumption of alcohol was recorded among Chinese consumers in 2020. Also, online purchases of alcohol gained significant traction among consumers.

Channel future growth highlights

The profit sector is set to grow during 2020–2025. This growth will be driven by the growth in transactions as well as outlets across all channels. The growing investor interest and expansion plans of operators in China will support the growth in the number of outlets. FSR will remain the largest channel, the transaction growth rate is expected to be the strongest in the leisure channel followed by the travel channel. The coffee & tea shop channel is forecast to continue to grow, driven by an increase in the number of transactions.

Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.