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BREAKFAST FOODS - CHINA - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Food

No. of Pages : N/A

Nutrition and safety are the two basic requirements for consumers when choosing breakfast. While the market value will certainly keep growing, the impetus to drive more business opportunities lies in providing convenience and saving time on preparing breakfast; moreover businesses may have an opportunity of adding more diversity to Chinese consumers’ breakfast table.

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Total market value is estimated to reach over RMB 2.1 trillion in 2022
Figure 1: Best- and worst-case forecast for breakfast foods, 2012-22
Food price decreased in 2017 but consumers spend more on breakfast both at home and out of home
Figure 2: Best- and worst-case forecast of at-home breakfast spending, 2012-22
Figure 3: Best- and worst-case forecast of out-of-home breakfast spending, 2012-22
Key players
Convenience store breakfast influence continues to grow
Packaged bread and cake have opportunities through improved quality
Cereal brands still need efforts to educate the market
The consumer
Breakfast carts/kiosks and convenience stores keep attracting consumers
Figure 4: Breakfast consumption frequency, by location, February 2018
Consumers spend more on at-home breakfast in 2018 than 2016
Figure 5: Breakfast spending at home, April 2016 and February 2018
Figure 6: Breakfast spending, by location, February 2018
Nutrition, safety and freshness are premium features
Figure 7: Upgrade drivers for breakfast foods, February 2018
Chinese consumers welcome hot breakfast
Energy boost breakfast: a missing opportunity
Figure 8: Breakfast needs on weekdays, February 2018
Figure 9: Breakfast needs on weekends, February 2018
Figure 10: Breakfast needs with families, February 2018
Authentic Chinese breakfast is the mainstream but fusion foods have chance depending on channels
Figure 11: Consumers’ interest in fusion foods for breakfast, February 2018
It’s good to see consumers’ growing awareness of protecting the environment
Figure 12: Consumers’ expectation of breakfast delivery, February 2018
What we think
ISSUES AND INSIGHTS
Convenience store dominance grows
The facts
The implications
At-home breakfast needs diversification
The facts
The implications
Standardisation of breakfast is a long-term perspective
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Total spending on breakfast in 2017 has exceeded RMB 1.5 trillion
Food price decreased but consumers are trading up on breakfast
Industrialisation together with urbanisation drives the market growth
MARKET SIZE AND FORECAST
Breakfast spending grows higher and stably
Figure 13: Breakfast spending, China, 2012-17
Per capita spending keeps growing
Figure 14: Per capita breakfast spending per day, RMB, 2011-17
Figure 15: Year-on-year increase of average food price, 2011-17
Look forward to a market value of over RMB 2 trillion in 2022
Figure 16: Best- and worst-case forecast for breakfast foods, 2012-22
MARKET DRIVERS
The diversification of the breakfast occasion
Urbanisation motivates out-of-home breakfast spending
MARKET SEGMENTATION
At-home breakfast robust
Figure 17: Best- and worst-case forecast of at-home breakfast spending, 2012-22
Out-of-home breakfast even stronger
Figure 18: Best- and worst-case forecast of out-of-home breakfast spending, 2012-22
KEY PLAYERS – WHAT YOU NEED TO KNOW
Convenience stores will remain popular breakfast channels
The rise of domestic packaged bread brands
Cereal products can find chance in the market
COMPETITIVE STRATEGIES
Sanquan launches business-to-business project
Convenience store provides customisation experience
Figure 19: Breakfast collection service provided by Bianlifeng in Beijing, China
Apply popular flavours in breakfast foods
Figure 20: Golden Sandy Rice Roll by KFC, China
Toly – rely on traditional distribution
WHO’S INNOVATING?
Brands are promoting packaged bakery products with better quality for at-home breakfast
Figure 21: Packaged bread and cake by Daliyuan, China
Figure 22: New launches in bread and bread products category, by selected flavour, China, 2015-17
Figure 23: Premium biscuit project launched by Three Squirrels in 2018
Cereal brands appeal to nutrition and health benefit
Figure 24: New launches in breakfast cereal category with fruit ingredient, China, 2015-17
Figure 25: New Launches in cereal category with TCM and superfood as ingredients, China
Overnight oats are popular in Western countries
Figure 26: Examples of overnight oat products in Western market
Starbucks launched Greek yogurt in mid-2017
Figure 27: Greek yogurt by Starbucks, China
THE CONSUMER – WHAT YOU NEED TO KNOW
Spending on breakfast at home has increased hugely
Tradition can’t change easily – breakfast has to be warm or hot
Fusion food attracts consumers on certain channels
BREAKFAST CONSUMPTION FREQUENCY
Frequency of breakfast at home fluctuates
Figure 28: Breakfast consumption frequency, by location, February 2018
Figure 29: Breakfast consumption frequency, at home, 2016-18
Breakfast carts/kiosks and convenience stores keep attracting consumption
Figure 30: Breakfast consumption frequency, breakfast kiosks, 2016-18
Figure 31: Breakfast consumption frequency, convenience stores, 2016-18
Two other places have potential to grow further
BREAKFAST SPENDING
Breakfast at home or breakfast carts/kiosks usually costs up to RMB 10
Coffee houses and casual dining restaurants occupy the high end
Figure 32: Breakfast spending, by location, February 2018
Consumers spend more for breakfast at home than 2016
Figure 33: Breakfast spending at home, April 2016 and February 2018
PREMIUMISATION OPPORTUNITY
Nutrition, safety and fresh are premium features
Figure 34: Upgrade drivers for breakfast foods, February 2018
Time saving and convenience means much for breakfast
Customisation attracts women aged 20-39 and men aged 25-29
Figure 35: Upgrade drivers, customisable to one’s taste, by gender and age, February 2018
BREAKFAST NEEDS BY OCCASION
Weekdays need filling and energy-boosting breakfasts
Figure 36: Breakfast needs on weekdays, February 2018
Demands on weekends and with families are similar
Figure 37: Breakfast needs on weekends, February 2018
Figure 38: Breakfast needs with families, February 2018
Breakfast has to be hot – tradition can’t change easily
CONSUMERS’ INTEREST IN FUSION FOODS
Tradition still dominates the Chinese breakfast table…
Figure 39: Consumers’ interest in fusion foods for breakfast, February 2018
…but interests widen with spending and channels
Figure 40: Consumers’ interest in fusion foods for breakfast, by spending in fast food chains, February 2018
Figure 41: Consumers’ interest in fusion foods for breakfast, by spending in casual dining restaurants, February 2018
OPPORTUNITIES FOR BREAKFAST DELIVERY SERVICE
Warm breakfast is everything
Awareness of environmental friendliness grows
Demand for punctuality reflects need for time saving
Willingness to pay for delivery services indicates opportunity
Figure 42: Consumers’ expectation of breakfast delivery, February 2018
MEET THE MINTROPOLITANS
Mintropolitans have higher interest in fusion foods
Figure 43: Consumers’ interest in fusion foods, by consumer classification, February 2018
Mintropolitans need breakfast which is energy-boosting
Figure 44: Breakfast needs on weekdays, by consumer classification, February 2018
Figure 45: Breakfast needs with families, by consumer classification, February 2018
Mintropolitans are more willing to pay for breakfast delivery
Figure 46: Consumers’ expectation of breakfast delivery, by consumer classification, February 2018
APPENDIX – MARKET SIZE AND FORECAST
Figure 47: Total spending on breakfast foods, China, 2012-22
APPENDIX – MARKET SEGMENTATION
Figure 48: Total spending on breakfast foods, by segmentation, China, 2012-22
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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