Food and beverage industry reaches trillion-dollar market with strong benefit potential

China's food and beverage market size grew from 2.9 trillion in 2014 to 4.7 trillion in 2019, with a compound annual growth rate of 10.1%. 2020 was affected by the epidemic and the food and beverage market size declined 15.4 to 4.0 trillion. With the normalization of epidemic prevention and control, national consumption enthusiasm was ignited, and the catering market size has recovered to 4.7 trillion in 2021, with a year-on-year growth of 18.6%. Preliminary estimates indicate that the size of China's catering market in 2022 will be close to 4.8 trillion yuan.

CAGR of per capita compensation in the catering industry exceeds 10%

Data released by the National Bureau of Statistics shows that the number of jobs absorbed by China's catering industry in 2018-2019 increased by 5.15% year-on-year from 21.54 million people to 22.65 million people, and the proportion of total employment also rose from 2.8% to 3.0%. In 2020, affected by the epidemic, the catering industry hit a cold spell, with overall employment slipping to 19.48 million.

Based on a joint study by the China Chain Store Management Association and the State Information Center, the average labor compensation (full-time) in China's food and beverage industry showed an upward trend from 28,395 yuan to 34,554 yuan in 2018-2020.

The catering industry has a significant pull effect on GDP, with more than 98% coming from consumption

According to a joint study by the China Chain Store Management Association and the National Information Center, the added value of China's catering industry exceeded 1 trillion yuan from 2018-2020, with 1.31 trillion yuan in 2019, and 2020 was affected by the epidemic impact has declined, at 1.17 trillion yuan.

According to a joint study by the China Chain Store Management Association and the State Information Center, the direct pulling effect of the catering industry on GDP in 2018, 2019 and 2020 will be 649.4 billion yuan, 716.6 billion yuan and 532.9 billion yuan, respectively. The vast majority of the final demand of the catering industry is consumed, and more than 98% of the direct effect comes from consumption.

For more research and analysis of this industry, please refer to "China Catering Industry Development Outlook and Investment Forecast Analysis Report" by Prospect Industry Research Institute

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