Chinese millennials and food habits by Daxue consulting

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“Millennials & Food Habits”
OCTOBER, 2016

INDEX
About Chinese Millennials
WhyareChineseMillennials
not cooking?
• Factor #1: Fast-paced lifestyle
• Factor #2: Ease to order online
• Factor #3: Looking for variety
• Factor #4: Desire for Social life
Key findings

About Chinese Millennials
Bornafter1980,millennialsarenowbetween
18 and 35 years old.
Currently, China has about 450 million
millennials. They make up around 30% of
China’s population and are becoming the
most important consumer group for the
global economy.
Millennials are the first generation of
Chinese to have grown up with political
stability, rapid economic growth and a
growing digital connection to the rest of
the world.
• Educated: Chinese young people
are much better educated and more
knowledgeable about the world. They are
digital natives and more globally aware.
• Urbanized:Whereas77%ofthemareborn
in rural areas, more than 60% of them live
in urban areas.
• Affluent: Wealthier at a younger age
than their parents, their average annual
income reached 5,900 $USD in 2015 (
around 40,000 yuan).
With rising income and various choices in
themarket,millennialsrequirehigherquality
products & services and want to pursue a
more diversified lifestyle.
Chinese millennials eating habits have
dramatically changed compared to older
generations. Those born in the 90s and
80s eat out and order food more often than
their parents.

Why are Chinese Millennials not cooking ?

• China’s GDP has been growing by an
annualaverageof10%sincethe1980s.This
high growth has led to rapid urbanization.
More than 770 million people moved from
the countryside to urban areas.
• Thecostoflivinginthedowntownsoflarge
cities have now become unaffordable for
most millennials who do not have enough
savings and financial support from their
parents. Thus, many of them choose to
live in less centrally located areas.
• Additionally, many millennials are forced
to work harder and longer to remain
competitive in the job market.
• Long work hours and lengthy commutes
result in a lack of time or energy for home
cooking.
• Their poor cooking skills and lack of
confidence in the kitchen demotivate
them.
Factor #1: Fast-Paced Lifestyle

Decrease in time of cooking
Weekly frequency of young people eating at home: 44% eat outside of the home at least five times a week.
39%
17%
25%
19%
Eat home almost everyday
Eat home 3-5 days a week
Eat home 1-2 days a week
Eat home almost never
Reproduced by Daxue Consulting from the Xinhua News Agency

• The emergence of O2O (online-
to -offline) food delivery services is
changing millennials’ dining habits. The
extremely tech savvy young generation
of consumers is favoring the digitalization
of the industry.
• Cheapdeliverycostsandtheconvenience
of online payment via Alipay or WeChat
wallet attract a large number of millennials
whoarediscoveringthejoysofdeliveriesto
their homes, workplaces, and universities.
• The total value of online food delivery
market in China grew by 50% to reach 20
million $USD in 2015.
• Online food ordering users were 150
million in June 2016.
• The industry is dominated by three big
players: Ele.me, Meituan Waimai, and
Baidu Waimai, with 36.5%, 30.5%, and
15% of total market share respectively.
Factor #2: Ease to order online

The increase in quality of life for many
people in China thanks to rising incomes
has meant that technology, travel, and a
global awareness have become a larger
part of normal life.
• 94% of millennials own a smartphone and
58% of internet users are millennials with
most accessing via mobile.
• By 2020, Chinese millennials will make up
more than 40% of the outbound tourism
from China.
• A more international outlook from this
has lead Chinese millennials to desire
the taste of international cuisines, who
are increasingly choosing western food,
and western restaurants.
There has been a surge in popularity of
foreigncuisines.JapaneseandKoreanfood,
as well as Australian steak, are especially
popular in China.
Rising income have made eating out more
affordable.
Millennials are more likely to try different
cuisines compared with those ages 35 and
older.
Factor #3: Looking for variety

72.30%
61.40%
45.80%
12.20% 10.90%
20.30%
7.50%
15.30% 15.30%
2.80%
6.60% 7.60%
4.70% 5.20%
11%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
70s 80s 90s
Food preferences comparison
Traditional Chinese food Fast food Hot pot
Foreign dishes Barbecue and snacks Linear (Traditional Chinese food)
Linear (Traditional Chinese food)
What do Millennials order online?

• For millennials specifically, as a result of
the one-child policy, there is a greater
desire for a bigger social life than people
born in previous generations.
• 53% of the post-80s and 63% of the post-
90s are dining out more frequently with
their friends and colleagues than with
their parents and other family members.
• For millennial couples, dining together
occupies more than 80% of all social
activities.
• Moreover, shopping malls “shops +
restaurants + cinema,” capitalize on the
demand from millennials for shopping,
dining, and entertainment at the same
time.
• Chinese millennials also like to take
pictures of their food and to share it on
social media, as a part of the eating out
experience. Around 60% of Chinese
mobile users share food on social media.
Factor #4: Desire for Social life

24%
24.80%
27.30%
9.50%
22.90%
28.80%
76.20%
97.20%
87.90%
0% 20% 40% 60% 80% 100% 120%
70s
80s
90s
Food Selfie and friends Eating environment
Which pictures do Millennials take while eating?
Chinese millennials enjoy dining out with their friends and colleagues. Beyond taking food pictures while eating, the post -90s generation
also tend to take more selfies and pictures with friends to show their lifestyles and maintain social network. The desire for active social life
is then directly impacting their dining habits and preferences.

• Chinese millennials seek to fulfill three
key desires when it comes to their eating
habits: convenience, experience, and
a better quality of life (health and well-
being).
• Millennials are becoming the biggest
consumer group in the food industry.
To target them, restaurants and food
businesses must adapt their strategies in
two ways:
• Achieve differentiation: This may include
the introduction of new food, investing in
improving the taste and quality of existing
foods, providing a dining experience or
targeting the health niche.
• Utilize technology and integrate O2O
services into the current business model:
For instance providing O2O food delivery
or accepting payment through mobile
devices (Wechat Pay, Alipay, etc.)
Key findings

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+86 (21) 5386 0380
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Chinese millennials and food habits by Daxue consulting

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