China Food

Capital crazy into food and beverage! In the first three quarters of this year, there were 520 financing cases

with the change of consumption concept of generation Z, China’s food and beverage track presents new development characteristics.

Text: venture State Research Center   

Source: chuangyebang (ID: ichuangyebang)

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Consumption has always been the foundation of China’s economic development. Even during the epidemic period, China’s consumer market has shown great resilience. In the post epidemic era after 2020, China’s new consumer market has rebounded rapidly due to the mature supply chain system, the booming digital economy and the strong consumer demand of generation z.
According to the data analyzed by chuangybang Rui beast, the investment enthusiasm of China’s new consumer industry has risen rapidly after 2020. In 2020, the number of investment cases reached a new high in five years with 462. The number of consumer enterprise financing cases in the first three quarters of 2021 was as high as 520, which has exceeded the number of financing cases in 2020.
In our research report, we will focus on the food and beverage track in the new consumption field. Combined with the analysis data of venture bangrui animal, industry research interviews and desktop research, we will deeply analyze the current situation of the investment and financing market, market potential and industrial chain reform of the food and beverage track, as well as the logic behind the high growth of manner coffee and busy snacks The Bureau or investors and entrepreneurs planning to layout the food and beverage track provide suggestions.
Investment and financing overview:
Crazy entry of institutions
New tea and offline catering chains are the most concerned
What is the current heat of the primary capital market of the food and beverage track? Is it getting colder or warmer? Which city’s projects have become the new stars? Which institutions are frequently arranged? In this chapter, we will outline the investment and financing overview of the food and beverage track based on the data analyzed by venture bangrui animal.
1. Food and beverage has become a hot track for new consumption, accounting for more than half of the investment cases in recent four years
According to the data analyzed by Chuangye Bang Rui beast, looking at the investment and financing situation of the new consumer industry market from 2016 to the third quarter of 2021, the investment enthusiasm of the new consumer industry has risen rapidly after 2020, with 462 investment cases in 2020 reaching a new high in the past five years. Food and beverage has become the most popular track for new consumption, accounting for 55% of the investment cases in the new consumer industry in the past four years.
Food and beverage brands have become a new outlet for hunting by investment institutions and large Internet factories. In addition to horse racing enclosure for new experience mode brands such as new tea, coffee and vegetable milk light food, investment institutions have also obtained crazy entry from investment institutions for traditional track brands such as catering chains, marinated snacks and refined beer.
Data source: Rui animal analysis
Data source: Rui animal analysis
2. Food brands and new tea financing are very popular, and offline catering chain brands are sought after by investors
In the past two years, the financing of food and beverage racing track has mainly focused on food brands and new tea brands. Brand financing of new coffee tea, composite condiments, fast food and marinated snacks is very popular. In order to meet the taste demands of Chinese people and new people, coffee shows a new trend of tea and popularization.
M stand coffee chain brand obtained two rounds of large-scale financing in 2021. In January 2021, m stand obtained a round of capital injection of RMB 100 million from CMC capital and Challenger capital; half a year later, in July 2021, m stand obtained more than RMB 500 million from start-up capital, black ant capital, Gaorong capital, CMC capital and Challenger capital. It is estimated that the post investment valuation of the brand is about RMB 4 billion It is mainly used to strengthen the supply chain system, upgrade the digital platform and layout offline stores across the country.
The offline food and catering chain brand has also become a hot pastry in the eyes of investors. Wuye noodles, an innovative catering chain enterprise, won round a and round a + financing within two months of 2021. In June 2021, Wuye noodles won the lead investment of CDH innovation and growth fund, and the round a financing of 300 million yuan jointly invested by B capital founded by Wuye noodles day investor Wang Cen; in July 2021, Wuye noodles won gaolingchuang The funds raised are mainly used to strengthen the supply chain system, accelerate the construction of self owned factories, iterate the information intelligent system, build the domestic top operation team and accelerate the layout of the national store network.
Data source: Rui animal analysis
3. Changsha, Chongqing and other cities have become hot spots for investment in new consumer brands
The regions of food and beverage financing enterprises are mainly concentrated in first tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, followed by Changsha and Chongqing. Changsha, which has produced online popular brands such as Wen Heyou, Cha Yan Yue Se and Ba man, has become a hot land for the growth of new consumer brands.
The transportation hub center of changshada is conducive to the expansion of the business district. The increasing per capita disposable income, no pressure of high mortgage squeeze out, and the leisure life attitude will make the urban population have consumption power. The “leisure” and “money” drive the population to have energy and time to spend.
We media with strong marketing ability, endless online Red shops and traffic products are the best proof. The online red brand supported by investment institutions generates traffic, and the traffic feeds back the city. These are the main reasons driving Changsha to become a consumer brand online red city.
Jiang Xiaobai, the self hi pot and Internet thinking liquor brand sought after by young people, comes from Chongqing. Many new consumer brands in Chongqing also have the attribute of online popularity. At the same time, it is also a fertile land for the birth of new consumer brands. COVID-19 has catalyzed new consumption scenarios and patterns. In order to cater to the new consumer market trend, Chongqing has integrated its commodity operation advantages with the popular “live goods” to create a new consumption scenario.
The advantages of convenient transportation and commercial hubs and innovative consumption scenarios are constantly driving the further release of the consumption upgrading potential of Changsha and Chongqing.
Data source: Rui animal analysis
4. IDG capital, Tiantu investment and other institutions frequently join the new food and beverage brands
In the past two years, food and beverage brand financing has set off a new upsurge in the venture capital private equity market. Meihua venture capital, IDG capital, Tiantu investment, Zhenge fund and other institutions and vertical institutions in the deep consumer industry have frequently entered the new segments such as tea, catering chain, stewed snacks and seasoned fast food.
In the face of trillions of catering services and leisure snack tracks, for example, IDG capital has successively bet on online popular brands such as wenheyou, Sandun and Baman. Source capital has entered star projects such as daily Heiqiao, Wang full saturated tea Yan Yuese, and Castle Peak capital has successively invested in enterprises with growth potential such as shark fitt and Jiadian taste.
Market capacity and pattern:
The concentration of the food and beverage market with a scale of more than trillion is low
Moderate layout difficulty
What is the market potential of the food and beverage track? Which sub track grows faster? Have market barriers been formed? In this chapter, you will learn about the potential market capacity of the food and beverage track, the market pattern of each sub track, and how to quickly open the market if you want to layout.
1. Market scale: after the epidemic, the catering service market rebounded rapidly, and the current tea consumption group grew rapidly
According to the prospectus of Haidilao and the data of catering Research Report of Guosheng securities, the scale of catering service market showed an increasing trend year by year from 2016 to 2019.
In 2020, due to the epidemic, the market scale fell back, but rebounded rapidly in 2021. It is expected that the market scale will reach about 4.4 trillion in 2021, an increase of 10% over 2020. It is expected to achieve an annual compound growth rate of 8% – 9% in the next five years.
The growth of China’s catering service market is mainly due to the acceleration of national urbanization and the upgrading of China’s population consumption. The accelerating pace of life has increased the public’s diversified demand for dining out. Restaurants with rich dishes and good atmosphere have become the first choice.
With the increasing attention of consumers to product quality and service attitude, the consumption mode has gradually changed from survival to enjoyment. Consumers’ demand for new tea has gradually developed from pure pursuit of taste to diversification. New people begin to pay more attention to the expression of personalized needs, thanks to the consumption concept of generation Z NEW people who dare to earn and spend, Hi tea, Naixue tea and other high-end tea brands came into being.
According to Naixue’s tea prospectus, the market scale of China’s current tea drinks in 2020 is about 113.6 billion yuan, which is expected to reach 340 billion yuan by 2025, with an annual compound growth rate of 24.5%. China’s current tea market has a huge consumer group and is growing rapidly.
Data source: comprehensive arrangement of venture State Research Center
2. Market pattern: the overall market concentration of food and beverage is low, and the difficulty of market layout is moderate
The market concentration of catering services, ready-made tea, compound condiments and light food on behalf of meals in the food and beverage track is relatively low. Due to China’s vast territory, rich cuisines, great differences in regional taste preferences and relatively scattered brand distribution in the market, facing trillions of catering services and hundreds of billions of potential markets of ready-made tea, compound condiments and light food on behalf of meals, It is relatively easy for industry players and investors to layout.
Catering services: with the help of capital, it is expected to grow rapidly, and the chain rate will gradually increase
In the past two years, the financing of offline catering chain brands has been very popular, but the degree of branding and chain is not high, the whole is large and scattered, the market concentration is low, and there is no particularly outstanding head brand. We found in our research that many investors firmly believe that with the improvement of China’s catering supply chain, the improvement of chain and the development of digital operation, There will be a chance to run out of a WanDian brand in the future.
Especially with the help of capital, for example, Tencent invested in Hefu Laomian and CDH invested in Wuye noodles. In the next five years, the catering industry may enter a period of rapid growth, and the catering chain rate will gradually increase. As the domestic cuisine is scattered, the market concentration is relatively scattered, and the layout difficulty is moderate. However, head catering brands need to formulate and implement strict food hygiene and safety management system and have strong supply chain integration ability.
Current tea: the market is in a scuffle situation with low barriers to entry
According to the prospectus of Naixue’s tea, the expansion of China’s existing tea market is accelerated. The market scale will be 113.6 billion yuan in 2020 and is expected to increase to 340 billion yuan in 2025, with a compound growth rate of 24.5%. Among them, the scale of high-end on-site tea is 12.9 billion yuan, which is expected to increase to 52.2 billion yuan in 2025, with a compound growth rate of 32.2%. In terms of competition pattern, the market segment of high-end ready-made tea has high concentration and obvious brand effect, with CR2 of 46.6% and Cr5 of 58.4%.
At present, the overall tea market is still in a scuffle. The product homogeneity is high, the differentiation is not obvious, the market is relatively scattered, the entry barriers are relatively low, the layout is relatively easy, and new brands will continue to appear with the help of capital. Aspiring to grow into a head brand requires strong operation and management ability and stable supply chain system.
Compound condiment: help control the cost of chain restaurants and prolong the life cycle of catering enterprises
The rise of “lazy house economy” and the exercise of compound seasoning stand at the tuyere. In the future, catering chain will also contribute to the rapid growth of the market of compound condiments, fast food and prefabricated dishes. For catering enterprises, the labor cost is the second cost second only to the cost of raw materials. Composite condiments help to control the labor cost of catering chain brands and prolong the catering enterprise cycle.
According to the condiment Research Report of Huachuang securities, China’s condiment consumption is mainly concentrated in catering consumption, household consumption and food processing, accounting for 45%, 30% and 25% respectively.
Substitute food and light food: the head brand effect has not yet appeared. Seize the opportunity and layout as soon as possible
In the post epidemic era, people put healthy diet and sports and fitness on the agenda. This era opportunity promotes the rapid rise of new brands of substitute food and light food.
At present, the market brand manufacturers are mainly light food brands represented by shark fit and keep’s health food and low-fat snack brands launched by Yuanxi forest. The track is in the early growth stage. The food standards of the whole light food substitute industry have not yet formed a unified definition. There is still a long way to go to realize standardization, specialization and branding in the future, The head brand effect has not yet appeared in the market, and brand manufacturers can obtain a leading advantage as soon as possible.
Industrial Transformation:
In the digital age
Food and beverage business model ushered in profound changes
In this chapter, you will learn what are the characteristics of the food and beverage industry chain system? In recent years, the emerging brands are mainly located in which link of the industrial chain? Under the impact of digital economy, what changes are taking place in the business model and marketing model of food and beverage track?
1. Industrial chain: new brands emerge one after another in the middle of the food and beverage industry chain
In the past two years, a large number of “new consumer brands” have emerged in the food and beverage track under the sweeping wave of new consumption. Manufacturers take consumer demand as the operation orientation, deeply understand and adapt to the demand changes brought by the change of consumer concept and emotion.
Data source: comprehensive arrangement of venture State Research Center
According to the data analyzed by Chuangye bangrui animal, the brands of food and beverage sub categories were established in 2019 and 2020, 91 food and beverage track brands were established in 2019, 87 in 2020, senior brother Zhou, a hot-pot/" 22375 rel="nofollow" target="_self">hot pot brand in Chongqing, Momo Dianxin Bureau, a new baking brand in Changsha and other traditional catering brands, That is, emerging brands such as freeze-dried coffee brand secre and coconut milk brand cocoa full score have also appeared in the past two years. Shicui has opened the market of high-quality and convenient coffee. Cocoa full score is a new medium and high-end coconut milk brand focusing on the concept of sugar free / low sugar. In recent years, new brands in the middle of the food and beverage track emerge one after another.
The new brand products are gradually showing a trend of refinement and health. Coffee and tea drinks have been refined into bagged instant coffee and tea brands and catering chain coffee and tea brands.
Cha Li, San Dun ban and Yu Tianchuan are typical representatives of instant coffee and tea sold online; Manner and Xiaoman tea field are fast-growing brands in the offline coffee and tea chain; Semi finished prefabricated dishes such as three meals with materials and light cooking have gradually become the best partner for the “exquisite lazy” new crowd; Shark fit, fit8, wonder lab and other healthy substitute light food brands have reached the health demands of fitness and weight loss people with low fat, low calorie and high satiety.
Data source: Rui animal analysis
Data source: Rui animal analysis
2. Business model: “e-commerce + supermarket” has become the mainstream business model of food and beverage brands
Although e-commerce online traffic plays a vital role in the development of new consumer brands, offline supermarkets with high repurchase rate and can quickly attract consumers are still very important. Many new brands adopt the business model of “e-commerce + supermarkets”. For example, both fast food brands such as zihi pot and Chaotianmen wharf, and snack brands such as Wang Xiaolu and three squirrels are the sales models of e-commerce and supermarkets.
Chaotianmen wharf is a convenient fast food brand with hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning extended from Chongqing Chaotianmen hot-pot/" 22375 rel="nofollow" target="_self">hot pot. The biggest sales advantage of the brand is that all its standard products can be sold in Chaotianmen hot-pot/" 22375 rel="nofollow" target="_self">hot pot stores. At the same time, Chaotianmen wharf is also actively arranging tmall flagship stores, and the sales methods of e-commerce and offline hot-pot/" 22375 rel="nofollow" target="_self">hot pot stores are working together.
The main sales channels of the shark feat light food brand, which mainly push chicken breast, are concentrated in Tmall, Jingdong and spelt tiktok. The Tmall is the largest sales channel. The jitter is a new channel for shark feat’s key layout, covering different groups with different product mix and price packages.
3. Marketing mode: Live e-commerce restructures “people and goods yard” to become a new driving force for consumption growth
The popular live broadcast e-commerce in recent three years has the characteristics of vivid and intuitive, real-time interaction, content diversity and fan effect. It uses live broadcast as a means to reconstruct the three elements of the new retail people and goods yard, break through the two-dimensional model of “people looking for goods” in traditional commerce, connect brands, short video platforms, e-commerce platforms, anchors and consumers, and promote the ecological reform of the consumer industry chain.
With the prevalence of online Red economy, a large number of influential and characteristic KOLs have been born in China. KOLs with high conversion rate have developed into the core force of live e-commerce – anchor. Live broadcasting brings sales and traffic to brand manufacturers, and has become a new growth power of e-commerce industry.
Through communication with consumers, the anchors of live e-commerce accurately grasp the diversified needs of consumers. Upstream manufacturers can quickly understand the real demands of consumers through sales data, reduce the trial and error cost of product R & D, production and design, open up the information flow of the upstream and downstream industrial chain of the whole industry, shorten the transaction time of goods and improve the conversion rate.
Data source: comprehensive arrangement of venture State Research Center
Case study:
The logic behind the high growth of food and beverage enterprises
According to the data analyzed by Chuangye bangrui animal, combined with our research, we selected two food and beverage companies, manner coffee and snacks, which are busy for summary and analysis. We hope to find out the important driving factors behind the high growth of the track enterprises, such as accurate consumer demand positioning, efficient and safe supply chain infrastructure, and standardized management system for each cup of coffee or each product display.
Case 1:
Manner coffee: the expansion of high-quality coffee brand with high cost performance
Business card: manner coffee
Business model: small store model + high-quality coffee at people-friendly price
Date of establishment: October 15, 2015
essential information:
Manner coffee is a chain coffee shop subordinate to Shanghai Yinhe Industrial Co., Ltd. It mainly provides users with coffee, tea, smoothie, fruit juice and dessert, as well as coffee related products such as coffee machine, coffee cup and ear bag. As of August 2021, there are 194 stores in China and 165 in Shanghai.
Founder background:
Han Yulong, founder and CEO of Shanghai Yinhe Industrial Co., Ltd., is a senior coffee lover after 85. In the early stage of entrepreneurship, he once operated a photography themed cafe in Nantong and did some coffee related training part-time. Since then, Han Yulong gradually focused his entrepreneurial direction on the coffee products themselves.
Before the establishment of manner, Han Yulong also worked as a roaster in caf é del volc á n boutique cafe, which is well-known among foreigners in Shanghai. He also had his own bean baking factory in Songjiang, Shanghai. Before he and his girlfriend Lu Jianxia founded manner, Han Yulong had been a coffee training instructor for several years. He could bake beans himself and had unique opinions on baking beans.
Enterprise development history:
        Data source: comprehensive arrangement of venture State Research Center
Financing history:
Key to operational success:
one   High cost performance + high-quality coffee: manner coffee is positioned as high-quality coffee. Instead of choosing shopping malls with high rent and large passenger flow, manner uses the small store model to reduce costs in store decoration and product packaging design, so as to benefit product prices and focus on high cost performance.
2. Strictly control the supply chain: manner built his own baking factory, strengthened the supply management of upstream raw materials, and used advanced coffee equipment to lay a solid foundation for the scale of the brand and the taste of coffee.
3. Process standardization: the offline training, examination and daily process and standardized operation of new baristas ensure the homogeneity of each cup of coffee.
4. Feelings of environmental protection: in order to convey the concept of environmental protection and advocate consumers to bring their own non disposable paper cups to reduce resource waste, manner stipulates that if they bring their own cups, they can be reduced by 5 yuan.
Case 2:
Snacks are busy: how to grow into a leader in subdivided industries in 4 years
Business card: snacks are busy
Business model: a wholesale snack brand with super supply chain
Date of establishment: 2016
essential information:
The professional chain snack brand, adhering to the innovative gene of Changsha snack busy Food Co., Ltd., is the first snack brand sold by volume. Snacks are very busy polishing out the standardized version 3.0 of stores. It has been established for more than 4 years, with more than 450 stores throughout Hunan. The unit price of customers with busy snacks is in the range of 30-50 yuan, and the passenger flow of a single store is in the range of 300-500 yuan.
Founder background:
Yan Zhou, the founder of snacks, gave full play to his professional advantages in marketing planning. At that time, Yan Zhou inspected the snack market in Hunan. Combined with his idea of starting a business, Yan Zhou and several partners pooled more than 100000 yuan to start their own business trip in a small store of 30-40 square meters.
Development history:
Data source: comprehensive arrangement of venture State Research Center
Financing history:
Key to operational success:
1. Accurate insight into consumer demand: snacks are very busy. It is the first snack brand sold by mass sellers in China. It attracts a large number of low-end groups at a price close to the people. The location of stores is mainly community business districts, attracting surrounding customers dominated by family consumption, and quickly opening up the market in a small profit and quick turnover mode.
2. Strengthen the construction of snack infrastructure: snacks are very busy. We have built a centralized warehouse management system of more than 30000 square meters, a professional supply chain management team and a logistics distribution network covering the whole province. The unified distribution mode provides a strong guarantee for all franchise stores to reduce commodity costs and ensure sufficient supply of goods.
3. It has a set of precise and complex standardized management rules and regulations for stores: from store image to product display, all details have corresponding scoring standards, and all stores use the real-time monitoring digital store management system to ensure the unified management and data management of stores.
The layout of food and beverage racetracks should pay attention to private areas
Food safety, R & D investment and building of supply chain system
In recent years, with the change of generation Z’s consumption concept and the continuous cross-border integration of digitization into the vertical field, China’s food and beverage track has shown the following important development characteristics:
Vertical differentiation
In the past, brands strive to provide a wide range of products, but with the unlimited segmentation of consumer demand, the entry logic of new brands is constantly dismantling the food and beverage industry. The differentiation trend of new tea brands is obvious. Coffee categories include online instant coffee drinks and offline coffee chain brands; The tea category includes instant tea brands such as online vegetable milk and bubble water, as well as current tea chain brands such as Xicha, Lele tea and Yidian, which will be more and more vertically differentiated in the food and beverage track in the future.
Multi scene
Nowadays, multi scenario food and beverage brands emerge at the historic moment, stripping products from a single application scenario. For example, the improved yogurt fruit cereal no longer appears as a breakfast, but as a multi scenario snack; Small grams of hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning not only appears in the occasion of multi person dinner, but also can be used as seasoning for cooking and soup. Multi scenario products will change product consumption from low frequency to high frequency. Multi scenario products are highly recognized and sought after by the market.
In the post epidemic era, people have developed the habit of exercise and healthy diet. In 2020, the sudden epidemic situation has evolved into a protracted war. People re-examine the health management and diet lifestyle. The healthy trend has formed a force. The healthy light food brand with low sugar, low calorie, less oil and less salt has harvested consumers such as health preservation people and weight loss experts. Whether it is low sugar and low calorie bubble water or black sesame pill to cure insomnia and anxiety, brands show the concept and trend of health.
The essence of the Internet is to improve the efficiency of information exchange. In the era of mobile Internet, in addition to the products that must be consumed offline and impulse consumption offline, the consumption scenarios of most food and beverage brands are mainly online. Although the penetration rate of e-commerce is only 25% in the country, there is much room for improvement in the future, Food and beverage brand online is worthy of attention.
According to the data on the development status of the food and beverage track analyzed and monitored by venture bangrui beast, as well as the important development characteristics of the industry, we put forward the following suggestions for entrepreneurs who choose the food and beverage track:
Deep cultivation of private areas
In the post epidemic era, with the positive layout of brand online marketing, it is more difficult for the brand to obtain customers in the public domain. New consumer brands pay more attention to the operation of private domain traffic, and more and more refined operations based on digital support. The brand pays more attention to user feelings, continuously accumulates user experience paths, and completes the efficient transformation of private domain traffic pool.
Pay attention to food safety
In recent years, a large number of new consumer brands have emerged, but the product quality is mixed. The quality of some brands is not up to standard. Many brands do not have their own production lines and cannot formulate and implement perfect quality, safety and health standards and quality inspection processes. It is difficult to control food safety problems. If food and beverage brands want to be bigger and stronger, food safety is the bottom line.
Focus on brand R & D capability
The entry threshold in the food and beverage field is low. Both taste innovation and packaging design are easy to be imitated. R & D capability represents the core competitiveness and entry barriers of enterprises. If new players want to enter the industry or investors want to layout valuable brands, brand R & D capability is the top priority.
Strengthen the construction of supply chain management system
The cost reduction and efficiency increase of enterprises is usually to strengthen the supply chain management system. Self built factories of upstream raw materials will play a decisive role in cost control. The reduced costs can be used in product R & D, design and brand construction to promote the benign development of the brand.
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