Daedal Research has released its latest report, analysing China's restaurant market by transaction, type, ownership, food type, size, and trends.
China's restaurant market value stood at US$625.21 billion in 2023, and is expected to reach USD $939.32 billion by 2029. Transaction volume (dining frequency) of the Chinese restaurant market was USD $175.65 billion in 2023.
Increasing integration of online food delivery platforms, growing interest in international and fusion cuisine, increasing company focus on digital marketing and branding, ongoing adoption of cutting-edge technology, and shifting emphasis on sustainability and responsible sourcing, will continue to boost the growth of China's restaurant market at a CAGR of 7.02 percent in the forecasted period of 2024-2029.
Full-service restaurants are the largest segment of China restaurant market owing to rapid urbanisation, rising demand for high-quality dining experience, widespread adoption of central kitchens, rising demand for healthy and sustainable food options, and chained restaurant's presence of well-established brands and a loyal customer base. While FSR (in terms of percentage in China's restaurant industry consumption) has been dominating the overall restaurant industry in China, the weights in LSR and Cafes (bars) are gradually increasing. Cafes/ bars is the fastest growing segment of China restaurant market owing to increasing coffee culture, presence of young vibrant population, increasing demand for casual meeting places, rise of hipster culture, growing popularity of social media platforms, and increasing emphasis on socialising and networking.
In addition, on the basis of segment, China full-service restaurant market is further divided into Asian food, pizza, and others. Similarly, China's limited-service restaurant market is further segmented into Asian food, burger and chicken related, pizza, and others, and the China cafes/bars market is further segmented into coffee & tea shops, bars/pubs, and Cafes, respectively.
Burger and chicken cuisine (i.e. Western fast food) growth, has outperformed the Chinese food category in the past few years. The burger & chicken segment demand to remain resilient as top fast food brands' menus have caught up with consumers' meat consumption trend in China. The Pizza segment is currently led by the FSR type while the LSR share has slightly increased. Pizza LSR's stronger growth should partly result from delivery service pickup. It can be seen that the continuous growth of food delivery services should help support consumers' preference shift to LSR in the future.
China's restaurant market transaction volume is also segmented into four types, namely, full-service restaurants, limited-service restaurants, cafes/bars, and others. In terms of transaction volume, limited-service restaurants are the largest segment of the Chinese restaurant market.
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