China’s foodservice profit to grow 2.6% through 2026

It is projected to reach $1.09t in 2026.

China’s foodservice profit is expected to grow at an annual rate of 2.6% to $1.09t in 2026 from $947.5b in 2021, a report found.

In its report on China Foodservice Market, GlobalData found that the growth of foodservice in the market will be driven largely by full-service restaurants. This accounted for 67.1% of China’s total profit sector revenue.

It grew at a compound annual growth rate of 3.6% between 2016 and 2021 due to delivery and take-away sales.

“The outbreak of the Delta variant of COVID-19 led to the implementation of strict public restrictions, including the closures of many tourist locations,” Srimoyee Nath, Consumer Analyst at GlobalData, said.

“Thus, operators turned to delivery, take-away, and drive-thru services in 2021 to survive another round of partial closures and restrictions.”

According to GlobalData, Yum! Brands, Inc. emerged as the leading full-service restaurant operator in 2021 with around 2,500 outlets.

This comes as the operator improved its menu offering, including the introduction of products such as preserved egg, milk tea, pizza, and hot pot pizza.

“Increasing inclination towards healthy food options made with fresh and local ingredients will be on the rise in channels such as QSR and FSR,” Nath also said.
“As a result, operators need to constantly innovate their menus with health-focused and quality dishes. The key target demographics for healthy indulgence will be the youth and millennials in China.”