Fragmentation or intensification of casual food companies
The reporter noted that the food and beverage index has continued to move higher this year due to the strong immediate demand in the food industry. Data show that as of June 28, 2019, a cumulative increase of 61.80%; food and beverage sector cumulative increase of more than 60%, ranking in the A-share market in the first half of the industry rose to the top of the list.
For the second half of the trend, Zhu Dampeng said that casual food and condiments will also grow. "For condiments, the second half of the year will usher in the peak season of food and beverage; the new generation of the demographic dividend continues to stack up, for leisure food is also good. However, with the rapid development of casual food, but be wary of the increased fragmentation of casual food companies."
Some institutional data show that in 2018, China's retail market size of condiments reached 109.067 billion yuan, an increase of 8.8% year-on-year, the rise of dining out, the convenience of takeaway makes the condiment catering market growth rate higher than the retail market growth rate. The condiment retail market is expected to grow at a compound rate of approximately 5% over the next five years.