Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Definitions
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- Figure 1: Definition of Low/Mid/High MHI groups, by city tier
Executive Summary
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- The market
- Total breakfast spending to reach RMB1,948 billion in 2021
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- Figure 2: Best- and worst-case forecast for breakfast foods, 2011-21
- Out-of-home sector grows faster
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- Figure 3: Best- and worst-case forecast of out-of-home breakfast spending, 2011-21
- Figure 4: Best- and worst-case forecast of at-home breakfast spending, 2011-21
- Key players
- At-home breakfast foods adding convenience features
- Fast food restaurants to make full use of in-store dining spaces
- Bakery stores and coffee shops to capitalise upon consumers’ aspirational lifestyle
- Convenience stores are positioned as one-stop breakfast vendor of good value for money
- Breakfast delivery service can target organisations and high-end subscribers
- The consumer
- Busy life drives people to eat breakfast out of the home
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- Figure 5: Percentage of consumers who eat breakfast at least 2-3 times a week, by location, Tier one cities, 2013 vs 2016
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- Figure 6: Breakfast consumption frequency, April 2016
- Different types of breakfast vendors compete in different price tiers
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- Figure 7: Breakfast spending, April 2016
- Western breakfast foods – cereals in particular – could gain popularity
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- Figure 8: Perception towards Chinese and Western breakfast, April 2016
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- Figure 9: Preferred breakfast foods, April 2016
- Consumers looking for convenient on-the-go breakfast solutions
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- Figure 10: Ideal packaging of breakfast cereals, April 2016
- Energy boosting benefits and more enjoyable weekend breakfasts are emerging needs
- What we think
Issues and Insights
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- Opportunity for promoting cereal products on breakfast menus
- The facts
- The implications
- Opportunity for marketing energy ingredients in breakfast foods
- The facts
- The implications
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- Figure 11: Examples of food and beverages featuring energy boosting super foods, overseas, 2015-16
- Fun and entertaining breakfasts during weekends
- The facts
- The implications
The Market – What You Need to Know
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- Total breakfast spending exceeded RMB1.3 trillion in 2015
- Urbanisation, rising cost of food and consumers trading up – the key market drivers
- Out-of-home breakfast spending will grow faster than at-home spending
Market Size and Forecast
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- Breakfast market exceeded RMB1.3 trillion in 2015
- Rising per capita spending drives year-on-year growth
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- Figure 12: Breakfast spending, RMB Billion, 2011-16
- Figure 13: Per capita breakfast spending per day, RMB, 2011-15
- Rising price of food
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- Figure 14: Year-on-year increase of average food price, 2011-15
- Urbanisation
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- Figure 15: Per capita breakfast spending per day, RMB, urban vs rural, 2015
- Trading up to healthier breakfast meals
- Breakfast market will continue to grow towards 2021
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- Figure 16: Best- and worst-case forecast for breakfast foods, 2011-21
Market Drivers
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- Rise of an entrepreneurial society
- Bigger breakfast during weekends getting popular
Market Segmentation
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- Urban population accounts for 79% of total breakfast spending
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- Figure 17: Breakfast spending, urban vs rural, RMB billion, 2015
- Out-of-home breakfast spending takes 50% share in urban areas
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- Figure 18: Breakfast spending, at home vs. out of home, RMB billion, 2015
- Out-of-home breakfast spending will grow faster than at-home spending
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- Figure 19: Best- and worst-case forecast of out-of-home breakfast spending, 2011-21
- At-home breakfast spending will be driven by richer content
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- Figure 20: Best- and worst-case forecast of at home breakfast spending, 2011-21
Key Players – What You Need to Know
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- Adding convenience features into product design
- Western fast food restaurants offering Chinese-style breakfast foods
- Bakery houses and coffee shops tapping into consumers’ lifestyle changes and aspirations
- Convenience stores becoming one-stop good-value breakfast vendors
- New business model for breakfast delivery service providers
Competitive Strategies
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- At-home breakfast foods evolving into more convenient forms
- Instant preparation method
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- Figure 21: Example of instant congee, China
- Snacking format
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- Figure 22: Examples of snacks targeting breakfast occasions, China, 2015-16
- Beverages adopting filling propositions
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- Figure 23: Examples of beverages/dairy products with filling features, China, 2014-16
- At-home breakfast foods targeting special demographics
- Kids
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- Figure 24: Example of breakfast foods targeting kids, China, 2015
- Young females
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- Figure 25: Example of nutritional breakfast meal replacement targeting young females, China, 2016
- Fast food restaurants adopting more competitive breakfast pricing plans
- Bakery houses and coffee shops capitalising upon ‘breakfast lifestyles’
- Convenience stores targeting busy office workers
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- Figure 26: Example of CStore’s menu and shelf of fresh cooked foods, 2016
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- Figure 27: Example of FamilyMart’s private label fresh food packaging, 2016
- New business model for breakfast delivery service providers
Who’s Innovating?
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- At-home
- Breakfast cereals adapting to local palate
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- Figure 28: Examples of breakfast cereals featuring traditional Chinese ingredients, China, 2015-16
- More vegetables in Western cereals
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- Figure 29: Examples of breakfast cereals featuring vegetables, overseas, 2015-16
- All-in-one cereal pots
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- Figure 30: Examples of all-in-one cereal pots, Western countries, 2015-16
- Capsule soy milk machine
- VR-enhanced at-home breakfast experience
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- Figure 31: Kellogg’s Ancient Legends cereals, UK, 2016
- Sharing breakfast foods with neighbours
- Out of home
- Premium breakfast delivery services targeting high spenders
- Slow breakfast at weekends
- Breakfast bags
- Promoting local breakfast culture
The Consumer – What You Need to Know
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- Elders, low earners and consumers in lower tier cities are more likely to eat breakfast at home
- Out-of-home breakfast vendors compete in different price ranges
- Western breakfast foods are gaining momentum amongst higher earners
- Energy food, convenient on-the-go format and premium weekend breakfast are potential future trends
Breakfast Consumption Frequency
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- Older people and low earners are most likely to eat breakfast at home
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- Figure 32: Breakfast consumption frequency, April 2016
- High earners go to fast food chains and coffee shops more often
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- Figure 33: Percentage of consumers who eat at out-of-home breakfast venues at least 2-3 times a week, by monthly personal income, April 2016
- Convenience stores and bakery houses are particularly popular amongst those aged 25-29
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- Figure 34: Percentage of consumers who eat at out-of-home breakfast venues at least 2-3 times a week, by age, April 2016
- Consumers in tier one cities eat at home less, and at breakfast stalls and convenience stores more often
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- Figure 35: Percentage of consumers who eat breakfast at least 2-3 times a week, by location, Tier one cities, 2013 vs 2016
Breakfast Spending
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- In-home breakfast saves at least 30% as compared to eating out
- Bakery houses and fast food restaurants compete within the higher price tier
- Convenience stores sit somewhere in between
- Coffee houses occupying the high-end segment
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- Figure 36: Breakfast spending, April 2016
Preferred Breakfast Foods
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- Chinese breakfast foods remain most popular
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- Figure 37: Preferred breakfast foods, April 2016
- Consumers going for healthier breakfast foods
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- Figure 38: Preferred breakfast foods (selected), by age, April 2016
- Western breakfast food is particularly appealing to high earners
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- Figure 39: Types of Western breakfast foods preferred, by monthly personal income, April 2016
Perceptions towards Chinese and Western Breakfasts
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- Consumers prefer Chinese breakfasts to Western breakfasts
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- Figure 40: Perceptions towards Chinese and Western breakfasts, April 2016
- “Convenient for on-the-go” is the only perceived advantage of Western breakfast foods
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- Figure 41: Examples of healthy cereal bars fitting for breakfast consumption, overseas, 2014-15
- Higher earners are more in favour of Western breakfasts
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- Figure 42: Percentage of consumers who like Chinese/Western breakfast, by demographics, April 2016
Ideal Packaging for Breakfast Cereals
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- Cartons and portable sleeves are the preferred packaging types
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- Figure 43: Ideal packaging of breakfast cereals, April 2016
- Young females prefer sachets
Attitudes towards Breakfast
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- Strong eagerness to eat a better breakfast during weekends
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- Figure 44: Attitudes towards breakfast, by demographics, April 2016
- Looking for convenient on-the-go breakfast options
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- Figure 45: Attitudes towards breakfast, by demographics, April 2016
- Energy-boosting breakfasts are desirable
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- Figure 46: Attitudes towards breakfast, by demographics, April 2016
- Challenges for breakfast delivery services to profit
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- Figure 47: Attitudes towards breakfast, by demographics, April 2016
Meet the Mintropolitans
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- Mintropolitans eat more types of breakfast foods
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- Figure 48: Preferred breakfast foods, by consumer segmentation, April 2016
- Greater affinity to Western breakfast
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- Figure 49: Percentage of consumers who like Chinese/Western breakfasts, by consumer segmentation, April 2016
- Craving a better breakfast during weekends
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- Figure 50: Attitudes towards breakfast, by consumer segmentation, April 2016
- Energy seekers
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- Figure 51: Attitudes towards breakfast, by consumer segmentation, April 2016
Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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