Impact of Lockdowns on the Chinese F&B Industry

3 strategies to bloom your F&B business after the COVID-19 pandemic

The COVID-19 pandemic proved how fragile each aspect of our lives is, and the first country to feel its devastating consequences was China. The Chinese Food and Beverage Industry, in particular, got hit the hardest due to its business nature regarding the dependence on human-to-human interactions.  

Now that the world is quickly recovering from the economic and social disruption, we can analyze how the industry has changed over the last 2 years. And how you can get the most out of the latest trends and business opportunities!

Chinese F&B Industry: Brief Overview of the Pandemic Impact

The harsh restrictions on transport, the severe lockdowns, and the limited access to physical stores defined the initial stages of the pandemic. What did this mean for the Chinese F&B Industry?

• Substantiate decline in raw materials production and supply chain activity
• Sales and traffic drop-off for most offline stores 
• Significant changes in the traditional dietary habits and food culture

What Trends Did Emerge in the Chinese F&B Industry During the Pandemic? Which Are Popular Now?

Due to the limited access to the outside world, many people got used to a sedentary lifestyle. The overreliance on smartphones and PCs as entertainment led to a hidden change in the population’s food habits.

Instead of purchasing essential goods in nearby stores, people could order the desired products with no unnecessary effort. E-commerce platforms (Jingdong, Taobao) and O2O delivery platforms (Eleme, Fresh Hema) gained immense popularity. The e-commerce grocery market is expected to reach a penetration rate of 33% by 2025. 

A sudden spike in demand for luxury and healthy products is another trend that will define the development of the Chinese Food and beverage industries for years to come. The pandemic made people reconsider the importance of food quality, so food safety is now on top of their list. 

Innovation is now a highly coveted aspect of the Chinese F&B Industry. New daring designs, extensive products list and variations, and innovative marketing strategies. People seem to enjoy extraordinary culinary indulgences. 

3 Best Strategies to Take Advantage of the Latest Trends in the Chinese F&B Industry

Here is how to bloom your business if you operate primarily in the Chinese F&B market.

1. Introduce an online service for your customers or engage them on social media. This will allow you to target your audience better and get more sales from a single customer with retargeting. This way, you will get additional revenue in the long run.

2. Experiment with every aspect of your business – from design and packaging to taste and even marketing strategies. Try to target the younger audience as their consumer mindset makes them the perfect prospects for exploring new opportunities.

3. Create a premium product line with a healthy-oriented focus. A slight overall rebrand incorporating such values wouldn’t be bad either.

Always be on the lookout for new trends and be quick to apply them!

Keep the mentioned strategies in mind, be daring in your approach, and you will see a substantiate difference in no time. 

uFoodin Team