HRI Sector Recovering in Late 2013, Set for Strong 2014 Food Service
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/31/2013 GAIN Report Number: China - Peoples Republic of Food Service - Hotel Restaurant Institutional HRI Sector Recovering in Late 2013, Set for Strong 2014 Approved By: Morgan Haas Prepared By: ATO Staff Report Highlights: While China's HRI sector attempts to maintain 20 years of double-digit expansion, government policies enacted in late 2012 to curb lavish expenditures deeply impacted hotels and restaurants in 2013. While effects are lingering, the sector began showing recovery in late 2013. Prospects for 2014 remain strong as (1) the impact of the new government policy has been nearly fully digested, (2) urbanization brings another 20 million Chinese to city centers, (3) increasing disposable incomes continue to translate into increased spending on luxury food expenses, and (4) western cuisine takes stronger foothold via the rapid expansion of international hotels and restaurants. While Beijing, Shanghai, and Guangzhou remain the strongest centers of consumer spending power in the HRI sector, expansion will continue to grow fastest in Emerging City Markets. Post: Commodities: Chengdu ATO Almonds, Shelled Basis Apple Juice, Concentrated Apples, Fresh Asparagus, Fresh Avocados, Fresh Canned Apricots Canned Mixtures Citrus, Other, Fresh Coffee, Green Dairy, Butter Dairy, Cheese Dairy, Dry Whole Milk Powder Dairy, Milk, Fluid Dairy, Milk, Nonfat
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