Lazy house economy promotes the rapid development of prefabricated vegetable industry. Chinese households are increasingly dependent on industrialized food production and socialized food supply. Prefabricated dishes simplify the tedious steps of buying, washing, cutting and cooking, integrate quality, nutrition and taste, and cater to the lifestyle of young consumer groups under the fast-paced life. In 2021, the space scale of Chinese prefabricated dishes is expected to reach 340 billion yuan, with a year-on-year increase of 18%. In the next 3-5 years, China’s Prefabricated food industry is expected to become the next trillion catering market.
Driving factors for the development of prefabricated vegetable industry. 1) The increase of residents’ income and the reconstruction of family consumption scene. Economic development has brought about changes in residents’ dietary structure, increased consumption of food materials and improved consumers’ purchasing power of prefabricated vegetables. 2) The industrialization of catering enterprises drives the expansion of prefabricated vegetable market. Affected by the epidemic in the past two years, many small individual restaurants have closed due to difficulties such as cash flow shortage, inventory backlog and local epidemic control. The scale and brand effect of chain restaurant enterprises have enhanced their ability to deal with risks. Under the heavy pressure, the chain restaurant rate in China has increased to 10.9%. 3) Strengthen the cold chain logistics distribution capacity and drive the development of the industry. The storage time of prefabricated dishes can be greatly extended and the freshness of dishes can be maintained as much as possible. Under the cold chain logistics distribution system, semi-finished vegetable enterprises expand the distribution scope, improve the product distribution efficiency, and expand the market coverage while ensuring food safety. 4) Favorable policies regulate the development of the industry. The rise of residents’ income promotes the upgrading of food consumption, and the scale of the food industry continues to expand. In recent years, the state has successively issued a series of laws and regulations to promote the food manufacturing industry to leap to the trillion level and expand the green food industry chain.
Factors restricting the development of prefabricated vegetable industry. 1) The profit of prefabricated vegetable enterprises is greatly affected by the price fluctuation of raw materials. The output of meat, poultry and aquatic products is cyclical and vulnerable to fluctuations in natural conditions. Changes in the cost of raw materials in the short term affect the profit level of the industry. 2) The ability of cold chain logistics distribution restricts the development of enterprises, and it is difficult to break through due to regional constraints. The main sales channels of large prefabricated vegetable enterprises are still local. 3) Food safety risks still exist, and the food safety situation of back kitchen workshops of small and medium-sized enterprises in the market is not optimistic. 4) It is difficult to restore the taste of some dishes, and there are variables in consumers’ psychological acceptance. Chinese cuisine has high requirements for taste, freshness of ingredients and cooking process, and standardization is facing great challenges.
Investment advice: lazy economy, family oriented consumption habits have changed. Residents’ fast-paced life is more dependent on industrialized food production and socialized supply, and prefabricated dishes cater to the lifestyle of young consumer groups under the fast-paced life. At present, local epidemics occur occasionally in China, and the frequency of family meals increases. Prefabricated vegetable bags have gradually become a necessity for isolated life at home. Chinese food industrialization and standardized production demand drive the expansion of b-end market of prefabricated dishes. Prefabricated dishes replace the processing of food materials and cooking of dishes in the back kitchen. The standardized production process can ensure the stable taste of dishes. While reducing costs, food enterprises can avoid cumbersome food material processing process, improve restaurant floor efficiency and improve the overall profitability. The increase of takeout penetration rate and the change of family structure promote the increase of C-end sales of prefabricated dishes. The explosive growth of takeout not only introduces a steady stream of passenger flow and orders into the catering industry, but also improves the convenience requirements. The decline of young people’s enthusiasm for studying cooking and the rise of women’s enrollment rate and employment rate have greatly reduced the time spent by households in the kitchen compared with the previous decade. Prefabricated dishes that can ensure the taste of dishes have become the first choice for family cooking. Suggestions: 1) specialized manufacturer of prefabricated vegetables: Suzhou Weizhixiang Food Co.Ltd(605089) ; 2) Involved in semi-finished food and beverage enterprises: Guangzhou Restaurant Group Company Limited(603043) , Tongqinglou Catering Co.Ltd(605108) ; 3) Enterprises with food manufacturing business: Fu Jian Anjoy Foods Co.Ltd(603345) , Zhongyin Babi Food Co.Ltd(605338) , Longda food.
Risk tips: industry competition intensifies the risk; Risk of food quality and safety problems; Cold chain logistics transportation risk.
