China’s Catering Consumption Grows Steadily in Q1, Spring-themed Experiences Boost Market Vitality

The National Bureau of Statistics released the latest data on April 16, showing that China’s catering revenue reached 1.4623 trillion yuan in the first quarter of this year, a year-on-year increase of 4.2%, according to China News Service. Among them, the catering revenue in March stood at 435.9 billion yuan, up 2.9% year-on-year, reflecting a steady recovery momentum of the catering market.

Data also shows that the catering revenue of units above designated size reached 422.9 billion yuan in the first quarter, a year-on-year increase of 3.8%, and 140.6 billion yuan in March, an increase of 2.0% year-on-year. The China Cuisine Association analyzed that although the growth rate of national catering revenue in the first quarter dropped by 0.5 percentage points compared with the same period last year, it was still 1.8 percentage points higher than the growth rate of total retail sales of consumer goods, accounting for 11.5% of the total, continuing to be an important driving force for consumption growth.

With the warm weather, China’s catering consumption market has ushered in the annual “spring-limited” upsurge. Many catering brands have launched seasonal new products and immersive scene experiences around elements such as spring flowers, greenery and fresh fruits, injecting strong vitality into the “spring economy”, according to China Catering News.

Immersive scene innovation has become a highlight of the spring catering market. In the 10,000-mu golden rape flower field in Yaxi International Slow City, Gaochun, Nanjing, Haidilao has innovatively set up a “Catch a Spring” camping-themed hot pot pop-up store. Diners enjoy hot pot and flowers in tents, with interactive activities such as kite flying and photo taking on the lawn, creating a joyful spring atmosphere in the countryside.

Beverage brands have also shined with spring new products. Cha Baidao’s guava series has set off a “pink check-in” upsurge on social platforms; Guming’s “Hand-peeled Big Tangerine” focuses on “juicy and refreshing” to awaken taste buds. Starbucks’ peach blossom latte and Luckin Coffee’s small white pear latte add spring floral and fruity flavors to coffee, while Nayuki’s Tea and Moli Nai Bai have also launched spring-themed drinks favored by consumers.

Catering brands are also expanding beyond traditional store boundaries to more romantic spring spaces. Take Shanghai’s “Qianshu Cherry Blossom Season” as an example, catering merchants such as Qingnian Gongshe, Laoqianggen and Lemon Right have set up pop-up stalls along the waterfront cherry blossom corridor, integrating food with cherry blossom viewing, according to China News Service. This 900-meter-long corridor with more than 70 cherry trees has become a popular spot for citizens and tourists.

Li Chunmei, a researcher at the China Cuisine Association, said: “In the first quarter, catering brands have enhanced their attractiveness through scenario innovation, seasonal products and space extension.” As the May Day holiday approaches, the association suggests catering enterprises further innovate around the “catering +” model to stimulate consumption potential while strengthening management on food safety and price transparency.