News

Report: China's QSR sector to see big changes

July 2, 2018

A new ResearchAndMarkets.com's report on the Chinese fast food market through 2022 shows this restaurant sector will grow due to: 

• Growing per capita disposable income of people
• Increased rate of urbanization.
• Lifestyle changes.

Despite these positive growth factors, the market is still challenged by food-safety issues and the population's growing interest in health. 

The report said that Chinese fast food is dominated by a relatively small number of large-scale brands, including McDonald's and Yum China, primarily. Other key players were identified as Beijing McDonald's Food Co Ltd., Yum China Holdings, Inc. and Jollibee Foods Corporation (Shanghai Yonghe King Co. Ltd.). 

As far as the elements prodding growth of the market forward, the population size and its increased disposable income were primary, along with: 

• Urbanization
• Lifestyle changes
• Western cultural acceptance 
• Peer Influence
• Low barriers to entry
• Loose regulation

Challenges in the market revolved mostly around food safety and the population's increasing interest in healthful living, as well as a declining number of younger people and growth in the fast casual sector. 

Some of the primary trends identified in the analysis, include a growing number of e-commerce services providing online information, services and discounts to increase consumers' experiences shopping offline, sometimes referred to as O2O, meaning online to offline. 

The trend toward increasing competition in a highly fragmented market and a preference for Western-style fast food, is also increasing as is fast food marketing and delivery channels.