Table of Contents
Executive Summary
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- The market
- Disruption caused by COVID-19 is unlikely to outlive the promising growth
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- Figure 1: Forecast of market size of hot pot dining, China, 2015-25
- Nearly 600,000 hot pot restaurants across China
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- Figure 2: Top ten cities by the number of hot pot restaurants, 2020
- Companies and brands
- Behemoths continued to ramp up coverage despite COVID-19
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- Figure 3: Restaurant numbers of top ten hot pot brands, 2019 & 2020
- Brands commit to further developing online to offline integration
- IP collaboration to build brand image and compete beyond products
- Specialised hot pot invigorates the market’s long-term growth
- The consumer
- Crowded market with niche hot pots expecting momentum in certain cities
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- Figure 4: Adoption of different hot pots, December 2020
- Consumers actively seek optimal channels with convenience and product variety
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- Figure 5: Purchase channel of retail hot pot products, December 2020
- Customisation of food and dining environment spurs hot pot delivery orders
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- Figure 6: Reasons for ordering hot pot delivery, December 2020
- Overall wide interest in soup bases, with a few regional preferences observed
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- Figure 7: Soup base innovation, December 2020
- Dessert menu can be a point of differentiation in conveying premiumness, especially to young diners
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- Figure 8: Hot pot premiumisation, December 2020
- Improve restaurant accessibility and hot pot quality to enlarge impact in lower tier cities
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- Figure 9: Attitudes towards hot pot, by city tier, December 2020
- What we think
Issues and Insights
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- Regional cuisines drive hot pot innovation
- The facts
- The implications
- Pet-friendly hot pot to appeal to pet owners
- The facts
- The implications
- Expand product portfolio to diversify revenue pathways, and more importantly to differentiate
- The facts
- The implications
The Market – What You Need to Know
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- Shattered market will rebound to the pre-COVID level in a year
- Hot pot restaurants approached 600,000 units in 2020
- Rising at-home hot pot gives rise to opportunities and competition
Market Size and Forecast
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- 2021 is likely to see a near recovery
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- Figure 10: Forecast of market size of hot pot dining, China, 2015-25
- Number of hot pot restaurants approached 600,000 in 2020
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- Figure 11: Top ten cities by the number of hot pot restaurants, 2020
Market Factors
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- New entrants join the retail hot pot market to stir up the game
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- Figure 12: Examples of self-heating hot pot and hot pot side dishes from Sanquan, Bai Cao Wei and Three Squirrels
- Investment focus shifts to hot pot supply chain amid the outbreak
- Premium hot pots lurk ahead to propel the growth
Key Players – What You Need to Know
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- Big chains reinforce leading position after the outbreak
- Brands scramble to enhance recognition to avoid homogenous competition
- Regional dishes inspire hot pot innovation and bring vitality
Market Share
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- COVID-19 intensified the consolidation of dominant brands
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- Figure 13: Restaurant numbers of top ten hot pot brands, 2019 & 2020
- Figure 14: Key operational information of Haidilao, 2019 & 2020
- Hema dives into hot pot business, offering dine-in and delivery services
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- Figure 15: Hema’s hot pot delivery and dine-in hot pot catering
Competitive Strategies
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- Brands further devoted to online-to-offline integration
- Haidilao further applies smart kitchen systems to streamline procedures and optimise services
- Players hope to enhance brand acknowledgement to increase retention
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- Figure 16: Liuyishou’s five IP characters
- Figure 17: Shudaxia’s flagship outlets with Chinese cultural elements
Who’s Innovating?
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- Advent of specialised hot pots diversifies consumers’ recognition
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- Figure 18: Examples of innovative domestic hot pots
- Figure 19: Examples of innovative foreign hot pots
- Themed hot pot restaurants take innovation to the next level
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- Figure 20: Coucou and Xiaolongkan’s themed stores
- Figure 21: Examples of themed hot pot restaurants
- Bilibili replicates hot pot dining shown in the documentary in real life
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- Figure 22: Bilibili’s hot pot documentary Life is Boiling
- Figure 23: Bilibili’s hot pot restaurant
The Consumer – What You Need to Know
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- Crowded hot pot market with a few dominant types
- Different expectations of home hot pot dining from restaurant dining
- Brands need to take a holistic approach to premiumise
Adoption of Different Hot Pots
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- Three regional hot pots have established their national popularity
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- Figure 24: Adoption of different hot pots, December 2020
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- Figure 25: Dropout rate of different types of hot pot, December 2020
- Balance local adaptation and authenticity for popular hot pot to go nationwide
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- Figure 26: Respondents who have had and like the three most popular types of hot pot, by city, December 2020
- Less-preferred hot pots can prioritise certain regions
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- Figure 27: Respondents who have had and like other types of hot pot, by city, December 2020
Purchase Channel of Retail Hot Pot Products
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- O2O retailers pose threat to conventional purchase channels
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- Figure 28: Purchase channel of retail hot pot products, December 2020
- Retailisation of hot pot restaurants needs to expand product range and channel
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- Figure 29: Purchase channel of retail hot pot products – repertoire analysis, December 2020
Reasons for Ordering Hot Pot Delivery
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- Customisation, rather than hygiene, is a strong motivation
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- Figure 30: Reasons for ordering hot pot delivery, December 2020
- Young consumers’ and pet owners’ lifestyles influence hot pot marketing
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- Figure 31: Reasons for ordering hot pot delivery – “able to have at-home leisure activities when eating hot pot” – by age & living situation, December 2020
Soup Base Innovation
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- Wide interest in trying out new soup bases
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- Figure 32: Soup base innovation, December 2020
- Lower tier consumers are a lot more enticed
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- Figure 33: Soup base innovation – repertoire analysis, December 2020
- Figure 34: Soup base innovation – repertoire analysis, by city tier, December 2020
- Polarised soup bases might as well target specific regions
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- Figure 35: Soup base innovation, by city, December 2020
Hot Pot Premiumisation
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- Consumers expect high price to be justified by quality and taste
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- Figure 36: Hot pot premiumisation, December 2020
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- Figure 37: Soup base innovation, by hot pot premiumisation – “high nutritional hot pot soup base”, December 2020
- Menu upgrades need to look beyond hot pot itself to stand out
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- Figure 38: Hot pot premiumisation – “offering premium desserts”, by age, December 2020
Attitudes towards Hot Pot
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- Dine-in hot pot appeals to tier one consumers while lower tier consumers trust retail solutions
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- Figure 39: Attitudes towards hot pot, by city tier, December 2020
- Hot pot dining serves as a social event for most
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- Figure 40: Factors of ordering hot pot delivery, by attitudes towards hot pot, December 2020
Appendix – Market Size and Forecast
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- Figure 41: Forecast of market size of hot pot dining, China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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