Menu Insights - China - September 2018

OVERVIEW
What you need to know
Covered in this Report
Definitions
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
More dining out occasions propels growing momentum
Dining out experiencing stricter regulations
Foodservice provider testing with retail
Companies and brands
Single-source ingredients to deliver authenticity
Grocerant: a new style providing better freshness
Innovative restaurants try to blur the lines of different cuisine
Strategies to tap into children economy
The consumer
Sugar becomes the new evil
Figure 2: Food intake limitations, May 2018
Dining out growth driven by young parents
Figure 3: Eating out habits, May 2018
High interest in trying different ethnic food
Figure 4: Interest in ethnic food, May 2018
Detailed information tops diners’ wish list
Figure 5: Favourable menu changes, May 2018
Super fruits become prevalent
Figure 6: Superfoods benefits awareness, May 2018
Nutrition plays a vital role in meat selection
Figure 7: Correspondence analysis – Perceptions of different types of meat and seafood, June 2018
What we think
ISSUES AND INSIGHTS
Nutrition presentation and acceptance
The facts
The implications
Figure 8: Examples of colour-coded labelling system, Europe, 2016-17
Figure 9: Hunter Gatherer’s Make your own bowl selection, China
Backlash on over-flavouring
The facts
The implications
Superfoods are not superb in China
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Momentum of growth driven by expanded dining out occasions
Food safety guarded by stricter regulations
Foodservice provider testing with retail
Meituan-Dianping releases Chinese version of Michelin Guide
MARKET FACTORS
More dining out occasions accelerate market growth
Figure 10: Consumer expenditure in foodservice, 2012-17
Foodservice brands’ attempt on retail
Stricter regulations to ensure confidence over dining out
International foodies cultivated during outbound travel
Meituan-Dianping has released Restaurant Guide
KEY PLAYERS – WHAT YOU NEED TO KNOW
Differentiation built with single-source ingredients
Grocerants offer upgraded freshness
Experiment with fusion food
Strategies to tap into children economy
COMPETITIVE STRATEGIES
Single-source ingredients to deliver authenticity
Figure 11: Restaurants with their own source of ingredients, China
Memory-retrieving food
Figure 12: Examples of nostalgic food offerings
Freshness redefined by grocerants
INNOVATION HIGHLIGHTS
Fusion excitement
Figure 13: Examples of fusion food, China
Figure 14: American-style Chinese food opening outlets in China, 2018
Mushroom as a label of health
Figure 15: Innovation of mushroom in menu, China, 2017
Design for family
Figure 16: Examples of kid-friendly activities hosted by restaurants, China, 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Sugar tops the black list
Winning young diners with guided choices
Middle age crisis for nutrition
Super fruits well received
DIETING HABITS
Sugar becomes the new evil
Figure 17: Food intake limitations, May 2018
Figure 18: Percentage limiting intake of sugar and salt, by cities, May 2018
Figure 19: New launches having claim on low/no/reduced sugar in categories of juice and yogurt, China, 2013-17
Good fat and bad fat
Figure 20: New launches of food and drink with minus claims, global, 2017
Less meat for older men
Figure 21: Percentage of consumers having tried to limit consumption of red meat, by age and gender, May 2018
EATING OUT HABITS
Satisfied with dining out
Figure 22: Eating out habits, May 2018
Growth driven by post-80s parents
Figure 23: Percentage of consumers who ate out more often in the last 6 months, by generation, May 2018
INTEREST IN FOREIGN CUISINES
Consumers are open to trying different ethnic foods
Figure 24: Interest in ethnic food, May 2018
Consumer preference fluctuates
Figure 25: Penetration of ethnic food, June 2015 vs May 2018
Figure 26: Ethnic food have eaten and would like to eat again, by region, May 2018
Interest in Japanese food remains high
Figure 27: Ethnic food have eaten and would like to eat again, May 2018
Geographic locations affect consumer perception of ethnic cuisines
Figure 28: Cross-analysis of ethnic food haven’t eaten but interested in trying, May 2018
FAVOURABLE MENU CHANGES
Favour for detailed information
Figure 29: Favourable menu changes, May 2018
Figure 30: Example of choice of flavour, China
Winning young diners with guided choices
Figure 31: Favourable menu change, by generation, May 2018
Figure 32: Cooperation of Michelle guide and Tmall, China, 2018
Figure 33: Claim of suitable for, China, 2013-17
Middle age crisis for nutrition
Figure 34: Percentage of consumers who are interested in seeing nutritional information on menus, by age, May 2018
Who are the new bon vivants?
Figure 35: Eating out habits – CHAID – Tree output, June 2018
Methodology
SUPERFOOD AWARENESS
Super fruits become prevalent
Figure 36: Superfoods benefits awareness, May 2018
Availability and ease of preparation drive acceptance
Figure 37: New launches of juice drinks, by flavour, China, Jan-Aug 2018
Potential with high income earners and parents
Figure 38: Superfoods benefits awareness, by income, May 2018
Figure 39: Superfoods benefits awareness, by family structure, May 2018
MEAT ASSOCIATIONS
Versatile chicken and premium beef favoured when dining out
Figure 40: Correspondence analysis – Perceptions of different types of meat, June 2018
Figure 41: Perceptions of different types of meat, June 2018
Methodology
Unexplored territory of duck dishes
Figure 42: Associations with duck, by region, May 2018
Nutrition plays a vital role in meat selection
Figure 43: Consumption per capita of selected meat in selected countries, 2017
Figure 44: Change of consumption of selected meat in selected countries, by kg/capital, 2017 vs 2016
MEET THE MINTROPOLITANS
Experienced and critical foreign cuisine diners
Figure 45: Ethnic food have eaten and would like to eat again, by consumer classification, May 2018
Figure 46: Ethnic food have eaten but not interested in eating again, by consumer classification, May 2018
Higher expectation on detailed ingredient information
Figure 47: Favourable menu changes, by consumer classification, May 2018
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations