2022
8
China Eating in Lower Tier Cities Market Report 2022
2022-11-26T03:02:32+00:00
REP5CB70958_AC48_41F1_A12D_A3B8B476E6A9
3695
157966
[{"name":"Food","url":"https:\/\/store.mintel.com\/industries\/food"},{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
“With the pandemic’s impact, lower tier city consumers are becoming more rational and sophisticated about eating and diet. They look for products and content that cater to their own flavour…

China Eating in Lower Tier Cities Market Report 2022

Market Intelligence Reports - What's Included
  • Interactive Databook
  • Multiple Report Formats
  • Access to Clients Portal
  • Custom Presentation Tool

“With the pandemic’s impact, lower tier city consumers are becoming more rational and sophisticated about eating and diet. They look for products and content that cater to their own flavour preferences and that resonate with what they believe in. They trust their own judgement and recommendations from trustworthy channels over those labelled as ‘professionals’ or ‘internet celebrities’. Meanwhile, consumers’ pursuit of health has been continuously influencing their choices. It has become important to look for ‘lighter’ food products with nutrients that target precise needs. Brands can attract lower tier city consumers through interesting content or methods that can enhance the ‘sense of value’ from consumption. It is also crucial for brands to specify products or services’ usage occasions and functional positions, targeting the pain points of consumers with segmented demands.”
– Frank Zhang, Research Analyst

Key issues covered in this Report

  • Food and drink: consumers’ demand for trying and exploring new products
  • Foodservice consumption: the opportunity to attract traffic online and improve offline experiences
  • Health concepts: light diet and precise supplement concept comes first
  • Drink occasions: segmented functions and consumer demands
Collapse All
  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Objective and methodology
    • Quantitative research methodology
      • Figure 1: The sample structure for each city is as follows:
    • Qualitative research methodology
      • Figure 2: Interviewed cities in the qualitative research
      • Figure 3: Profiles of respondents to the qualitative research
  2. Executive Summary

    • The market
    • Mid-late-stage urbanisation spawns new challenges and opportunities for industrial structure development in lower tier cities
      • Figure 4: GDP sector composition, by city tier, 2018-20
    • COVID-19 outbreaks affect the consumption environment in lower tier cities more severely than tier 1 cities
      • Figure 5: Total retail sales and year-on-year growth rate of consumer goods, by city tier, 2018-20
    • Despite limited immediate impact of outbreak, lower tier city consumers tend to have conservative consumption behaviours
    • Confidence in financial situation rebounds steadily in lower tier cities, but will be affected by tier 1 and 2 cities indirectly
      • Figure 6: Confidence in improving future finances – very confident/somewhat confident, by city tier, 2020-22
    • The consumer
    • Food and drink: consumer demand for trying new things and exploration
      • Figure 7: Trading up and down willingness in discretionary in-home food (eg snacks) and non-alcoholic drinks (selections combined), by age, 2022
    • Foodservice consumption: opportunity to attract traffic online and improve offline experiences
      • Figure 8: Agreement on the statement “there are enough choices for venues for consuming on-premise alcoholic drinks”, 2022
    • Health concepts: light diet and precise supplement concept top of mind
      • Figure 9: Health status compared to one year ago – selected items, 2022
    • Drink occasions: functionality and consumer segment demands
      • Figure 10: Selected functional drink needs, by age, 2022
    • What we think
  3. Introduction to Lower Tier Cities in China

    • Mid-late-stage urbanisation spawns new challenges and opportunities for industrial structure development in lower tier cities
      • Figure11: GDP sector composition, by city tier, 2018-20
    • COVID-19 outbreaks affect the consumption environment in lower tier cities more severely than tier 1 cities
      • Figure 12: Total retail sales and year-on-year growth rate of consumer goods, by city tier, 2018-20
    • Real income growth slowing down in lower tier cities
      • Figure 13: Per capita annual salary, by city tier, 2018-20
    • Proportion of single, unmarried people in high-income groups in lower tier cities approaching tier 1 cities
      • Figure 14: Family structure of surveyed respondents, by city tier, 2019- June 2022
    • Car ownership and gym membership penetration rates comparable to tier 1 and tier 2 cities
      • Figure 15: Car ownership and gym membership, by city tier, 2017-22
  4. Market Drivers

    • Despite limited immediate impact of outbreak, lower tier city consumers tend to have conservative consumption behaviours
      • Figure 16: Impact of COVID-19, by city tier, 2022
      • Figure 17: COVID-related actions in future, by city tier, 2020 vs 2022
    • Confidence in financial situation rebounds steadily in lower tier cities, but will be affected by tier 1 and 2 cities indirectly
      • Figure 18: Confidence in improving future finances – very confident/somewhat confident, by city tier, 2020-22
    • Home appliance category leads trade up market, while shopping centres march into lower tier market
    • Healthy eating is popular nationwide and related conceptual products have huge potential to tap into the lower tier market
      • Figure 19: Food consumption needs – more, by city tier, 2022
  5. Food and Drink: Consumers’ Demand for Trying New Things and Exploring

    • ‘Rationally try new products’ – incorporate flavour and emotional demands
      • Figure 20: Food and drink new products consumption – interview excerpts, 2022
      • Figure 21: ‘Nation pride brands’, ‘organisation certified’ or ‘organic products’ – interview excerpts (negative feedback), 2022
    • Brands and products should be ready to be ‘observed and judged’
      • Figure 22: Food and drink product recommendations and trust – interview excerpts, 2022
    • Loyalty to brands remains, while trust in new products depends on consumers’ judgement
      • Figure 23: Food and drink brand choices and negative news – interview excerpts, 2022
    • Drivers to trade up for snacks and drinks remain in lower tier cities
      • Figure 24: Trading up and down willingness in discretionary in-home food (eg snacks) and non-alcoholic drinks (selections combined), by age, 2022
    • Recommendations on short video platforms penetrate all age groups, while younger generation prefers livestreaming
      • Figure 25: Selected triggers of trying new snack products, by age, 2021
    • Brands with advantages explore innovations in product formats
      • Figure 26: Chacha Food expanding into the nut drink segment, 2022
    • Target consumers precisely with occasion positioning and short video commerce
      • Figure 27: Fanhu Douyin videos and livestreaming events, 2022
  6. Foodservice Consumption: Opportunity to Attract Traffic Online and Improve Offline Experiences

    • With the pandemic, demands for the dining environment and experiences are evolving
      • Figure 28: The pandemic’s influence on dining out – interview excerpts, 2022
    • Attracting traffic online can meet consumers’ social demand for foodservices
      • Figure 29: Reasons for dining out offline – interview excerpts, 2022
    • Higher demands for diversified spaces and attentive services
      • Figure 30: Selected hot pot in-store services that attract consumers to visit, 2022
    • Bars and nightclubs became ‘secondary social venues’ for younger consumers in lower tier cities
      • Figure 31: Agreement on the statement “there are enough choices for venues for consuming on-premise alcoholic drinks”, 2022
    • Pubs with down-to-earth elements became popular online during the pandemic
      • Figure 32: Helens’ sub-brand Helens Yue restaurant, 2022
    • Create ‘meanings’ behind dining with storytelling marketing content
      • Figure 33: Banu Beef Stripe Hot Pot’s promotion elements, 2022
  7. Health Concepts: Light Diet and Precise Supplement Concept Top of Mind

    • Healthy eating: simplifying what can be done and seen
      • Figure 34: Healthy eating habits – interview excerpts, 2022
      • Figure 35: Drinks with sweeteners – interview excerpts (negative feedback), 2022
    • Consumers hold a more positive attitude towards precise nutrition with targets
      • Figure 36: Health supplements – interview excerpts, 2022
    • Young people concerned about health issues
      • Figure 37: Health status compared to one year ago – selected items, 2022
    • ‘Tribe-target marketing’ helps health supplements tap into the young generation
      • Figure 38: Swisse ‘New Heathy set (健康新神装)’, 2022
    • Endorse the healthy image with a ‘professional’ fitness platform
      • Figure 39: Keep ‘Tastes Incredibly Good’ marketing campaign for its low-calorie protein bars, 2021
  8. Drink Occasions: Segmented Functions and Consumer Demands

    • Coffee becomes a regular drink with functionality higher priority than sense of ritual in daily life
      • Figure 40: Coffee – interview excerpts, 2022
    • The plant-based concept yet to be popularised, while consumers hold expectations for functionality
      • Figure 41: Plant-based diets – interview excerpts (other feedback), 2022
    • Functional drinks are in strong demand, while middle-aged consumers’ needs deserve attention
      • Figure 42: Selected functional drink needs, by age, 2022
    • Steering away from the ‘internet celebrity’ label resonates with consumers
      • Figure 43: Adopt A Cow x Luo Yonghao – a letter to cows, 2021
    • Cross-category collaborations create strong marketing appeal
      • Figure 44: Nongfu Spring Tea Water x Xiao Guan Cha Spring Tea (小罐茶春茶), 2022
  9. Appendix

    • Abbreviations
    • Interviewees’ photos

Why Choose Mintel?

Mintel is the world’s leading market intelligence agency. We show you how consumers think today and tomorrow. As a trusted partner to industry leaders, we deliver game-changing insights to businesses across the globe, fuelling their marketing and innovation strategies that will shape the future.

Access high-quality market research with every purchase of Mintel’s consumer reports. Here’s what else is included in your report purchase:

  • Multiple Report Formats: Mintel’s reports are available in PDF and PPT formats, and are delivered straight to your inbox, so you can easily share Mintel’s market intelligence.
  • Access to Mintel’s Clients Portal: After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal, providing instant access to supplementary insights from Mintel’s industry experts.
  • Interactive Databook: Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.
  • Custom Presentation Tool: Easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Below is a generic PDF sample report. Understand what you are buying.

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
£ 3,695 (Excl.Tax)
  • Instant access when you pay by credit card
  • Add multiple reports to your cart to receive a discount
Add to cart

Is this report right for you?

From consumer reports to customised growth strategies. We have an option to suit your business requirements.

Find out more

Popular Related Reports

China Senior Food and Drink Solutions Market Report 2025

£ 3,695

This report looks at the following areas: Key factors influencing the food and drink market for seniors Purchase and trial of food and drink for seniors Senior consumers'...

Find out more

China Consumer Snacking Trends Report 2025

£ 3,695

This report looks at the following areas: Snacks market size and factors Performance of snack market segments and categories Overview of snack categories Consumer awareness of and demand...

Find out more

China Bakery Houses Market Report 2025

£ 3,695

This report looks at the following areas: Size and prospects of the bakery house market Number of stores operated by leading bakery house brands Emerging product trends in...

Find out more

China On-premise Tea and Dairy Drinks Market Report 2025

£ 3,695

This report looks at the following areas: Outlook and growth prospects for China's on-premise tea and dairy drinks market The competitive landscape of the on-premise tea and dairy...

Find out more

China Packaged Bakery Foods Market Report 2025

£ 3,695

This report looks at the following areas: Market growth is slowing: high penetration, product innovation and channel optimisation are crucial. Channel competition is intensifying: private labels are on...

Find out more

China Salty Snacks Market Report 2025

£ 3,695

This report looks at the following areas: Market size and forecast for major salty snack segments Market factors and new product trends for salty snacks Trends and changes...

Find out more

Trusted by global industry leaders

Jackman logo

At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.

Alana Gavin, VP Research and Insights, Jackman
VocaLink logo

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

 

Andrew Neeson, Market Intelligence Manager, VocaLink
Mediacom logo

Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.

It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.

Pauline Robson, Managing Partner, Mediacom
Deutsch logo

One of the biggest challenges we face is the need to get smart on a business or category real quick.

We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.

We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.

Jeff White, Business Development Director, Deutsch
Waitrose & Partners logo

We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.

Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.

Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners

Is this report right for you?

From consumer reports to customised growth strategies. We have an option to suit your business requirements.

Find out more