In 2021, the pre-prepared dish market reached 340 billion yuan, a year-on-year increase of 18%, and was listed by Tmall as one of the top ten trend products for Double 11. Currently, Chinese households spend an average of 1 hour and 35 minutes per day on cooking, and compared to 2000, 45.9% of families have reduced their kitchen cooking time by about 45 minutes. Compared to cooking or waiting for delivery, pre-prepared dishes are undoubtedly a time-saving and labor-saving choice. With their pre-processed product characteristics, the dishes cooked are not only of high quality but also better meet health and safety requirements in terms of raw materials and nutritional pairing. The potential of the pre-prepared dish track is limitless. Who are the leading players, what are their business models, and what characteristics do they have? Next, we analyze them one by one. (In no particular order)

Weizhixiang Suzhou Weizhixiang Food was established in December 2008 and listed on the A-share main board in April 2021. Weizhixiang is currently one of the larger enterprises in the country for semi-finished product research and manufacturing. As a To C company, Weizhixiang has over 1,000 offline stores, selling four major categories: meat and poultry, aquatic products, soups, and snacks, all of which are semi-finished dishes. In 2020, Weizhixiang's total revenue was 620 million yuan, a year-on-year increase of 14.8%, with a compound growth rate of over 20% from 2017 to 2020. From Q1 to Q3 of 2021, Weizhixiang's revenue reached 570 million yuan. Relevant data shows that Weizhixiang heavily relies on regional income, with the East China region accounting for 97.60%, 96.81%, and 96.80% of revenue in the past three years, with sales concentrated in Suzhou, Shanghai, and other areas. Unlike the restaurant industry's model, which focuses on products and services and replicates expansion based on single-store profitability, pre-packaged food requires continuous channel expansion, market promotion to drive sales, and profitability through scale sales. Whether Weizhixiang can become stronger remains unknown.

Anjoy Foods (Dongpin Xiansheng) Founded in December 2001, Anjoy Foods Group is mainly engaged in the research, production, and sales of frozen products, including quick-frozen hot pot ingredients (mainly surimi and meat products), quick-frozen rice and noodle products, and quick-frozen prepared dishes. As a frozen food brand that operates both To B and To C businesses, Anjoy Foods has 1,033 first-tier distributors in China, mainly including chain hypermarkets such as RT-Mart, Yonghui, and Walmart. Its catering clients include offline chain brands such as Xiabuxiabu, Haidilao, and Yonghe King, and it maintains good cooperative relationships with snack brands like Bestore and Ruisong Foods. In 2021, Anjoy Foods' sales from Q1 to Q3 reached 9.99 billion yuan. In 2020, annual revenue was 6.97 billion yuan, up 32.3% year-on-year. From 2017 to 2020, Anjoy's compound growth rate reached 44%. On February 22, 2017, Anjoy Foods Group Co., Ltd. was listed on the main board of the Shanghai Stock Exchange. As a leading brand in the frozen food sector, Anjoy has cumulatively undertaken 12 national-level projects and has led or participated in the formulation and revision of over 60 standards, including "Terminology for Quick-Frozen Foods" and "Frozen Surimi."

Guolian Aquatic Products Zhanjiang Guolian Aquatic Products Development Co., Ltd., abbreviated as "Guolian Aquatic Products," was established in 2001. By building a vertically integrated industrial chain covering seedlings, feed, aquaculture, processing, and sales, adopting a large-scale operation strategy, and leveraging excellent food safety management capabilities, efficient supply efficiency, and industry-leading product research and technological innovation advantages, Guolian Aquatic Products has become a high-quality aquatic product supplier in the industry, covering categories such as shrimp, fish, and fried aquatic products. Over the years, the company's shrimp export volume has consistently ranked first in the domestic industry. The "Guolian No. 1" shrimp seedlings and Guolian aquatic feed developed by the company have become brands trusted by farmers. The company's annual export earnings exceed 100 million US dollars, accounting for 40% of China's total shrimp exports to the US market. From Q1 to Q3 of 2021, Guolian Aquatic Products' revenue exceeded 3.3 billion yuan. In 2020, the company's total revenue was 4.5 billion yuan, a year-on-year decrease of 2.9%, with a compound growth rate of 3.1% from 2017 to 2020. Guolian Aquatic Products is involved in both To B and To C businesses. In addition to establishing cooperative relationships with B-end retailers such as Yonghui and Walmart, it recently combined its own products with Hema's channel advantages to jointly layout pre-prepared dishes, and also expanded into channels such as group meals and rural banquets. Guolian Aquatic Products has also opened official stores on platforms like JD.com and Tmall to cater to the C-end business.

Qianwei Central Kitchen Zhengzhou Qianwei Central Kitchen Food Co., Ltd., established in 2012, has been committed to providing comprehensive supply solutions for restaurants, hotels, and group canteens. Qianwei Central Kitchen's product categories cover fried foods, hot pot ingredients, basic pastry, bakery, and soups. To B business is the main line for Qianwei Central Kitchen, but it also lays out online C-end platforms such as Tmall and JD.com. Well-known catering brands such as KFC, Burger King, Yonghe King, and Haidilao are all cooperative clients of Qianwei Central Kitchen. From Q1 to Q3 of 2021, Qianwei Central Kitchen's revenue reached 888 million yuan. In 2020, the brand's annual revenue exceeded 940 million yuan, a year-on-year increase of 5.6%, with a compound growth rate of 16.7% from 2017 to 2020. (Some cooperative enterprises of Qianwei Central Kitchen, source: Qianwei Central Kitchen official website) In recent years, Qianwei Central Kitchen's business has grown year by year, with an overall positive trend. In September 2021, Qianwei Central Kitchen successfully listed on the A-share main board. According to official website information, the brand currently offers two cooperation methods: channel and strategic.

Sunner Development Fujian Sunner Development Co., Ltd. was founded in 1983, integrating independent breeding, hatching, feed processing, broiler breeding, broiler processing, deep food processing, and product sales. As one of China's top 500 private enterprises and a leading agricultural industrialization enterprise, Sunner Development was listed on the Shenzhen Stock Exchange A-share board in October 2009. As a To B enterprise, Sunner Development's product line covers leg, wing, breast, whole chicken, claw, chicken carcass, and by-products of broiler chicken. It has signed long-term strategic cooperation agreements with fast-food brands such as McDonald's and KFC, and has served as a supplier for the National Youth Games, the G20 Hangzhou Summit, and the Xiamen BRICS Summit. From Q1 to Q3 of 2021, the brand's sales reached 17.23 billion yuan. In 2020, Sunner Development's annual revenue was 13.75 billion yuan, a year-on-year decrease of 5.6%. From 2017 to 2020, the brand's compound growth rate exceeded 10.6%. From being controlled by international companies for chick numbers to independently cultivating white-feathered chickens, Sunner Group's founder Fu Guangming continuously broke through the limitations of seed sources, talent, and capital, turning Sunner into a highly automated enterprise with nearly 40 years of no food safety incidents. As Fu Guangming himself said: High technology must be controlled in our own hands, and core competitiveness must be possessed by the enterprise.

Fucheng Wufeng Hebei Fucheng Wufeng Food Co., Ltd. was established in March 1998. It is a large comprehensive enterprise integrating meat products, quick-frozen foods, dairy products, catering chains, funeral services, beef cattle breeding, and beef cattle slaughtering and processing. Fucheng Wufeng's main business is frozen meat and secondary processed meat products. In July 2004, Fucheng Wufeng was listed on the A-share market of the Shanghai Stock Exchange. Fucheng Wufeng is an enterprise that operates both To B and To C businesses. The C-end products are mainly steaks, sold on online platforms such as JD.com and Tmall. The B-end main partners include major airlines and the Training Bureau of the General Administration of Sport of China, among other enterprises and institutions. From Q1 to Q3 of 2021, Fucheng Wufeng's revenue reached 980 million yuan. In 2020, the brand's total revenue was nearly 1.1 billion yuan, a year-on-year decrease of 24.9%, with a compound annual growth rate of -23.4% from 2017 to 2020. With economic development, China's total meat consumption will continue to grow, catching up with or even exceeding some developed countries. At the same time, Fucheng Wufeng's sideline business involves organic milk production. In the current environment where consumers are transitioning from "organic milk" to "drinking good milk," there are still high-end consumer groups for Fucheng Wufeng to develop.

Gaishi Food Established in October 2002, Gaishi Group is an enterprise mainly engaged in the processing, production, export, and trade of edible fungi, wild vegetables, and other agricultural products. Its predecessor was Dalian Green Food Co., Ltd., founded in 1994. The group is divided into two entity companies with factories: Dalian Gaishi Food Co., Ltd. and Chengdu Gaishi Food Co., Ltd. Currently, Gaishi Food has developed and produced five major product series: marine vegetables, nutritious mushrooms, healthy vegetarian dishes, seafood delicacies, and caviar series. It has also led the revision of the national basic food standard GB 2760 for seaweed and edible fungi, driving the overall development of the industry. Currently, Gaishi Food is investing in the construction of a second factory in Huai'an, Jiangsu. Once operational, it will further increase production capacity and bring linkage effects to business development. From Q1 to Q3 of 2021, Gaishi Food's revenue reached 230 million yuan. In 2020, the company's annual revenue was 220 million yuan, a year-on-year decrease of 4.7%. From 2017 to 2020, the brand's compound growth rate was 17.21%. On November 15, 2021, Gaishi Food was among the first batch to list on the Beijing Stock Exchange, becoming the first stock for pre-prepared cold dishes on the BSE. As an enterprise mainly focused on To B business, Gaishi Food has maintained close cooperation with companies such as Xiabuxiabu, Yoshinoya, Xibei, and Master Kong. In the future, it will establish a key account department in the domestic market to provide customized, R&D, and processing service solutions.

Xianmeilai Xianmeilai Food Co., Ltd. was established in January 2006, engaged in the research, production, and sales of aquatic pre-prepared dishes. Its main products include ready-to-cook pre-prepared dishes such as shrimp paste, and ready-to-prepare pre-prepared dishes such as shrimp meat and raw fish fillets. It has established dozens of branch companies in central cities such as Shanghai, Guangzhou, Chengdu, Zhengzhou, Wuhan, and Xi'an. As an enterprise mainly focused on To B business, the brand's downstream clients include supermarkets such as Walmart, Yonghui, and RT-Mart; e-commerce platforms like JD.com and Hema; food processing enterprises such as Synear and Wanchai Ferry; chain restaurants like Xiabuxiabu and Guoquan; and regional commercial distributors. In the first half of 2021, the brand's total revenue was 409 million yuan. In 2020, the company's annual revenue exceeded 850 million yuan, a year-on-year decrease of 6.8%, with a compound growth rate of -4.8% from 2018 to 2020. Although total revenue has declined year by year, the company's net profit from 2018 to 2020 was 58.0249 million yuan, 89.7664 million yuan, and 90.2557 million yuan, respectively. Excluding the impact of the pandemic, the brand's net profit is steadily rising. In December 2021, Xianmeilai sprinted for listing on the Shanghai Stock Exchange main board. However, the brand still faces issues such as lower profitability than peers, reliance on a single product, and products having been on quality blacklists. Recently, Xianmeilai has also been questioned by the market for distributing large dividends of 77.1 million yuan during the reporting period and raising funds to "replenish blood" despite ample cash flow.

Shuhai Supply Chain Shuhai Supply Chain was originally under the control of Haidilao Catering and began independent operations in 2007. It is a catering supply chain service enterprise integrating sales, R&D, procurement, production, quality assurance, warehousing, transportation, information, and finance. It now provides overall ingredient supply chain solutions for a wide range of catering chain enterprises and retail customers, with Haidilao being one of its main clients. Shuhai Supply Chain has modern logistics centers, food processing centers, base material processing plants, vegetable planting bases, mutton processing plants, and marketing centers across the country. Relying on strong product R&D, procurement, production, quality assurance, warehousing, and transportation capabilities, it is a catering supply chain service enterprise integrating sales, R&D, procurement, production, quality assurance, warehousing, transportation, and finance. In addition to meeting Haidilao's own business development needs, Shuhai Supply Chain also serves "7-11," one of the world's largest retail groups, as well as airlines and multiple offline catering chain brands in hot pot, Chinese cuisine, barbecue, and Korean cuisine categories.

Jia Guolong Kung Fu Cuisine In October 2020, Xibei launched Jia Guolong Kung Fu Cuisine. Unlike the brands mentioned above, Jia Guolong Kung Fu Cuisine has offline physical restaurants that sell eight major cuisines and Northwestern cuisine. The restaurants have no pots or stoves; all dishes are semi-finished products that can be heated with an induction cooker for dine-in or takeaway. The brand has collected specialty dishes from all over the country, allowing customers to taste eight major cuisines in one restaurant. Currently, besides Northwestern cuisine, the restaurant has over 30 SKUs across the eight major cuisines, and it is said that this will increase to 100 by the end of this year. All dishes are cooked and then frozen at minus 40 degrees Celsius for rapid freshness locking, ensuring that the taste is restored after reheating. Founder Jia Guolong stated that he wants to create 100-1,000 super experience stores, 10,000-100,000 retail points, and 100,000 "food deliverers," making it a "family canteen" for 100 million households and 300 million people.

Shejian Gongfang The main company of "Shejian Gongfang," Shejian Technology (Beijing) Co., Ltd., was established in August 2020. It is a brand founded by Lu Zhengyao, the founder of Luckin Coffee, focusing on the procurement, processing, and sales of pre-prepared dishes. The brand plans to open 3,000 stores nationwide in 2022. Shejian Gongfang mainly operates To C business, processing first-hand raw materials purchased from origin into semi-finished products using technology, and transporting them to terminals via quick freezing or refrigeration. Consumers only need simple cooking after purchase. From the Shejian Gongfang app, its products are mainly divided into six categories: pre-prepared dishes (meat dishes, soups), frozen ingredients (requiring self-matching of vegetables and seasonings), hot pot ingredients, frozen pastries, finished dishes, and seasonings, totaling over 100 SKUs. According to the official introduction of Shejian Gongfang, one of its advantages is low price—pre-prepared ingredients are close in price to raw materials bought directly from supermarkets, and quick-cooked dishes are 50%-60% of restaurant prices. Currently, Shejian Gongfang's strategy is to empower franchisees, with no direct-operated business.

In conclusion: From the analysis of the mainstream players in the pre-prepared dish track above, the following conclusions can be drawn:

  1. Most are To B enterprises, with ready-to-cook and ready-to-prepare foods being the majority, mainly frozen and processed foods.
  2. There are few strong To C brands, and there is significant room for development in both category and product diversity.
  3. The degree of homogeneity among leading brands is low, and some brands have high market share in single categories.
  4. There is still considerable growth space in the ready-to-eat and ready-to-heat food tracks. Currently, the To B track for pre-prepared dishes is relatively mature. After offline restaurants were exposed for heavily using pre-prepared dishes, the To C pre-prepared dish business is expected to have significant growth space.

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