Cutting Into The Restaurant Channel, What Do Condiment Companies Rely On To Unlock?

　　Data shows that the market size of China's catering industry was 4.69 trillion yuan in 2021, up 18.6% year-on-year, basically recovering to pre-epidemic levels. The catering industry has a huge demand for condiments and its recovery has brought a steady increment of demand to the condiment industry. The industry expects that in 2025, the market size of China's condiment industry will reach 550 billion yuan, of which, catering condiments account for the largest proportion. What can condiment companies rely on to "break through" in the restaurant market? Industry insiders said that companies need to take the use of condiments to determine the use of the value of the restaurant chef as the leading, to create explosive products.

Rely on large single product to win

　　The catering industry, due to its own professional characteristics, has high requirements for the quality and taste of condiments, and the demand is large and relatively stable. Data shows that the catering channel accounts for the largest share of condiments, reaching 50%. Compared to the household channel, which requires more focus on category and channel layout capabilities, the catering channel has its own characteristics.

　　In terms of products, chefs use condiments frequently and repeatedly for a long time. To ensure the quality of dishes and flavours, they often choose to use condiments with safety, stability and high quality, and condiment companies generally rely on large single products to win.

　　In terms of price, chefs have certain habits and are more sticky to certain categories and brands, and therefore less price sensitive in the case of general price increases in the industry. However, at present, restaurants often have buyers who will buy more cost-effective products according to the chef's requirements, so the restaurant market will be more rational when buying condiments.

　　In terms of distributors, due to the large demand and wide coverage of the catering channel, as well as small after-sales costs, higher gross margins and a more stable system, distributors are more willing to choose the catering channel to open sales. As the catering industry tends to become larger and more specialised, as well as the establishment of central kitchens, catering outlets tend to concentrate on purchasing condiments, which is also conducive to distributors to expand their channels.

　　In the terminal, chefs have certain requirements for condiments according to recipes, usage habits, cooking methods, etc. After choosing a condiment, in order to ensure the consistency of the quality of the finished dish, it is generally not easily replaced, and therefore has a high degree of brand loyalty.

　　From the current point of view, Haitian flavor industry, Li Jinji and other brand enterprises cut into the earlier, the catering channel for its main sales channels, and has a strong channel stickiness; in the torch high-tech, Hengshun, Qianhe and other new entrants to force the catering channel is relatively more difficult, usually choose to force the family channel.

　　Industry insiders said that condiment companies can launch cost-effective single products for the catering channel, such as large packaging, promotional packaging and other "catering equipment", while through the cultivation of opinion leaders to open up the catering channel.