ContentsIntroduction------------------------------------------------------------------------------------------------------------------------------3Section I: Our survey on health perceptions ---------------------------------------------------------------------- 4Section II: The tribes of F&B consumers ------------------------------------------------------------------------------- 12Healthy food tribes ------------------------------------------------------------------------------------------------------ 13Coffee tribes----------------------------------------------------------------------------------------------------------------- 26Alcohol tribes--------------------------------------------------------------------------------------------------------------- 36Section III: China’s restaurants industry --------------------------------------------------------------------------------- 48Conclusions: What should brands focus on in the future? ------------------------------------------- 55About Daxue Consulting ----------------------------------------------------------------------------------------------------------- 56 IntroductionIn recent decades, Chinese dietary habits have undergone significant transformation, shaped by a complex interplay of factorsextending beyond food choices. These shifts result from a higher level of prosperity, increased health awareness, exposure to diversecultures, and the pervasive influence of modern technologies and media.As disposable income rises, Chinese consumers increasingly prioritize the quality of their meals, leading to premiumization. This shiftreflects a preference for freshness, quality, and natural ingredients over low prices and long storage times.¹ Consumers are opting forhigher-quality products, even if it means paying a premium. Simultaneously, heightened health awareness is driving more consumersto focus on fitness and reconsider their dietary choices, leading to a growing demand for healthier food and beverage options. Phraseslike “0 fat, 0 calories, 0 sugar” (0脂0卡0糖)have become taglines on soft drinks, and a surge in healthy Food and Beverage (F&B)alternatives underscores this evolving preference.Fueled by the cosmopolitan Gen Z, a coffee craze has swept through major Chinese cities, presenting the beverage as a chic andenergizing product. This trend has attracted both international and domestic players, resulting in a proliferation of coffee shops acrossthe country. The emergence of localized offerings, incorporating elements like tea and flowers, has become the new norm, imparting adistinctive flair to the evolving coffee culture in China.Despite the prevalent dominance of baijiu in the local wine and spirits market, the thirst for alcoholic drinks among Chinese consumersis diversifying. The market is opening up to a wide range of products, with foreign liquors serving as status symbols, especially reservedfor special dinners and social events. A notable shift is observed among younger consumers, particularly women, who are increasinglydrawn to cocktails. The hashtag “self-made cocktails” (#自制鸡尾酒#) has garnered over 370 million views on Xiaohongshu as ofJanuary 2024. This surge in popularity underscores a growing trend of enjoying cocktails at home, often seen as a personal indulgenceor a way to unwind after a day of work.Sources:1. Purchase criteria for food in China as of December 2023https://www.statista.com/forecasts/1348254/purchase-criteria-for-food-in-chinawww.daxueconsulting.comdx@daxueconsulting.com 3 Section I: Our survey on healthperceptionsIn order to best grasp the modern Chinese concept of health food, we asked 1,000 Chinese consumers to rankhow they perceive the health-level of certain foods and nutrients. The commonly accepted definition of what’shealthy is continually shifting with new discoveries, and more influentially, what information is dispersedamong a population. This ever-changing perception of health immensely impacts a consumer’s dietary habits,especially in the modern world where there’s an abundance of choice. How health beliefs have evolved in the last few yearsOur survey found that among Chinese consumers, protein and dietary fiber maintain their status as the most highly regardednutrients for health. Compared to our 2021 survey, there is a decreasing number of individuals considering added sugars to behealthy. A notable shift is observed in the perception of fats, with fewer people viewing them positively. Despite this trend, 45.1% ofindividuals still believe that trans-fat is either healthy or neutral, highlighting persistent confusion on this topic.Trans fat has emerged as a hot topic online, particularly on platforms like Xiaohongshu, where around 54,000 posts are dedicatedto educating users about this harmful nutrient and identifying foods containing it.Overall, there has been a significant increase in nutrient awareness since 2021. While only 6.4% of individuals remain unfamiliar withOmega-3 (a notable decrease from 40% i