Breakfast Foods - China - May 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Covered in this Report
Definitions
EXECUTIVE SUMMARY
The market
Figure 1: Breakfast spending, China, 2015-2025
Companies and brands
The consumer
Consumers are embracing both Chinese and Western breakfast
Figure 2: Consumption category for breakfast, February, 2021
Cooking at home is still on-trend, but there is a chance for coffee shops
Figure 3: Purchasing channel, February, 2021
Milk and dairy alternatives dominate breakfast drinks
Figure 4: Breakfast drinks, February, 2021
Different needs for working days and days-off
Figure 5: Breakfast needs by occasions, February, 2021
Balanced nutrition and fresh are basics as well as keys to win
Opportunity for all-day breakfast
Figure 6: Reasons for all-day breakfast, February, 2021
What we think
ISSUES AND INSIGHTS
Bring more regional breakfast into the market
The facts
The implications
Quicker, healthier and smaller in-home ready breakfast meals in more varieties
The facts
The implications
Tea houses can tap into breakfast business
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Breakfast market will soon pick up the growing momentum post-COVID
In-home surged the market with robust growth
Out-of-home lost in short-term but seen confidence in market recovery
MARKET SIZE AND FORECAST
The market sustained a slowed growth credited to the in-home segment
Figure 7: Breakfast spending, China, 2016-2020
Back to strong upward trend in the next five years
Figure 8: Breakfast spending, China, 2015-2025
MARKET FACTORS
More in-home meals for hygiene
Figure 9: Consumption change after COVID-19, February, 2021
Figure 10: Trend of consumers spending more on in-home food, China, February-2020 April 2021
Eating out is influenced by public epidemic information
Figure 11: Trend of consumers spending more on eating out*, China, February-2020 April 2021
Breakfast habits are regionally distinctive
Development of plant-based food and drinks
MARKET SEGMENTATION 
In-home is the definite ace with robust growth
Figure 12: Market value of in-home breakfast foods, China, 2015-2025
Out-of-home lose temporarily but will recover soon
Figure 13: Market value of out-of-home breakfast foods, China, 2015-2025
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Value-for-money and regional breakfast
Quicker, smaller and healthier breakfast solution
COMPETITIVE STRATEGIES
Betting on cost-effective breakfast combo
McDonald’s super value breakfast month
Figure 14: Official announcement of super value breakfast month, McDonald’s, China, 2020
Starbucks rolled out RMB15 breakfast line
Regional breakfast
Figure 15: Examples of national fast food brands launching regional cuisine as breakfast, China, 2021
Babi Food got listed
Figure 16: Short shelf-life steamed buns from Babi Food, China, 2020
NEW PRODUCT TRENDS
Buoyant breakfast innovations in China
Figure 17: Top 10 markets in breakfast new launches of food and drinks, MAT2016 (April)-2021
Figure 18: Top five breakfast categories in new launches of food and drinks, China, MAT2016 (April)-2021
Figure 19: Top 10 Flavours in breakfast new launches of food and drinks, China, MAT2016 (April)-2021
Figure 20: Examples of fruit/yogurt flavour breakfast products, China, 2020-2021
Keep going on quick solutions
Figure 21: Top 10 claims in breakfast new launches of food and drinks, China, MAT2016 (April)-2021
Figure 22: GoOats’ Oatmeal Ball, US, 2020
Figure 23: Del Monte Foods Fruit & Oats Snack Cups, US, 2020
Figure 24: Dingding Bao (叮叮包) from Hema, China, 2021
Plant-based meat joins in breakfast
Figure 25: Plant-based Panini from FamilyMart, China, April 2021
Figure 26: Plant-based meat breakfast line from McDonald’s, China, 2021
Figure 27: Starbucks GoodGood plant-based products, China, 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Consumers are open to both Chinese and Western-style breakfast
Filling and saving time are the biggest demands on working days
Balanced nutrition and fresh ingredients are foundation of healthy breakfast
CONSUMPTION CATEGORY
Opportunity for Chinese and Western fusion
Figure 28: Consumption category for breakfast, February, 2021
Figure 29: Breakfast preference, March, 2021
Meal replacement is not an effective way of communication
Figure 30: % point change of penetration between 2020 and 2021, by category
More often at home choices needs quicker solutions
Figure 31: Breakfast preference, by frequency of eating at home, February 2021
Figure 32: Frequency of having breakfast at home, by children in households, February 2021
CONSUMPTION FREQUENCY
Cooking at home stays stable in post-epidemic time
Figure 33: Purchasing channel, February, 2021
Figure 34: % point change among different frequency users between 2020 and 2021, China
Coffee shops gain more users
Figure 35: Croissant siu mai pairing with coffee, Wuhan, China, 2021
BREAKFAST DRINKS
Dairy drinks are the priority choice
Figure 36: Breakfast drinks, February, 2021
Figure 37: Penetration of certain breakfast drinks, by frequency of having breakfast at home, February 2021
Preference of drinks show regional differences
Figure 38: Penetration of certain breakfast drinks, by region, February 2021
Sparkling water is full of potential for working days’ breakfast
Figure 39: Breakfast needs on working days, by certain drinks, February 2021
BREAKFAST NEEDS BY OCCASIONS
Quick and value for working days while novelty and variety for days-off
Figure 40: Breakfast needs by occasions, February, 2021
Females are more demanding on working days while males on day-off
Figure 41: Breakfast needs on working days, by gender, February 2021*
Figure 42: Breakfast needs on days-off, by gender, February 2021*
Cereals and Chinese-style instant breakfast drinks can satisfy needs of working days
Figure 43: Breakfast needs on working days, by breakfast category, February 2021
Figure 44: Average satisfaction of needs on working days*, by breakfast categories, February 2021
HEALTHY BREAKFAST PREFERENCE
Balanced nutrition and freshness are the essential
Figure 45: Healthy breakfast preference, February, 2021
Balanced nutrition and freshness are the triggers for less-often consumers
Figure 46: Selected healthy breakfast preference, by occasion and frequency, February 2021
Hot not necessarily equals to healthy
ALL-DAY BREAKFAST
Most consumers would like to try all-day breakfast
Signature products also shine in non-breakfast time
Figure 47: Reasons for all-day breakfast, February, 2021
Balanced nutrition is not attractive enough for Gen Z outside breakfast time
Figure 48: Selected preference of healthy breakfast foods, by age group, February, 2021
Figure 49: Selected consumption reason for all-day breakfast foods, by age group, February, 2021
APPENDIX – MARKET SIZE AND FORECAST
Figure 50: Breakfast spending, China, 2015-2025
APPENDIX – MARKET SEGMENTATION
Figure 51: Retail market value of in-home breakfast, China, 2015-2025
Figure 52: Retail market value of out-of-home breakfast, China, 2015-2025
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations