China's pizza market to exceed 100b yuan within 5 years: report

SHANGHAI -- China's pizza market is projected to surpass 100 billion yuan ($13.9 billion) over the next five years, driven by rapid growth in lower-tier cities and rising demand for delivery and ready-to-eat products, according to an industry report.

The market is forecasted to grow from 48 billion yuan in 2024 to 60.8 billion yuan in 2025, said the report released at the ongoing SIAL Shanghai, an international food exhibition. China had more than 60,000 pizza outlets nationwide by the end of March.

Between 2016 and 2022, pizza chains in China's third-tier cities and below grew at a compound annual growth rate of 10 percent, outpacing 7.6 percent growth in first-tier cities. An estimated 15,000 new stores are expected to open in lower-tier markets between 2025 and 2027.

China's online pizza market share surpassed in-store sales for the first time in 2022, reaching 58.1 percent. The proportion is expected to continue rising in the coming years, according to the report.

Pizza entered the Chinese mainland in 1990 with the launch of the first foreign-invested restaurant. Initially considered a premium Western offering confined to top-tier cities, the food item has gained traction over the past decades.

Analysts attribute the market expansion to increased food delivery adoption, rising consumer spending in smaller cities, and growing demand for personalized, healthier pizza options tailored to local tastes.

The report noted that despite this momentum, China's pizza store density remains low compared with other countries. As of 2022, China had 11.7 pizza outlets per million people, compared with 232.4 in the United States and roughly one-third the density of Japan and the Republic of Korea, suggesting ample room for further expansion.

According to industry experts, the evolution of China's pizza market reflects both the openness of its consumer market and long-term growth potential.

SIAL Shanghai, an international food and beverage trade show co-hosted by multiple organizations including France's Comexposium Group and the China General Chamber of Commerce, spans 200,000 square meters and features more than 5,000 exhibitors from 75 countries and regions.

The event runs from May 19 to 21 in the eastern Chinese metropolis.