2022
0
China Eating in Lower Tier Cities Market Report 2022
2022-11-26T03:02:32+00:00
OX1104911
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

£ 3,695 (Excl.Tax)

Description

“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

Table of Contents

  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

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch