How’s the self-heating hot pot now？

Text |Digital consumption　　

Because of the epidemic in 2020, many people who can’t go out began to choose to try various convenience foods. Self-heating hot pot, a new generation of convenience food, became popular.

From January to May, 2020, the consumption of convenience foods in China increased by 1.5 times, with an increase of 21.3 times in February. In just a few years, the self-heating hot pot brand index on the market has increased. But today, the popularity of self-heating hot pot is gradually declining, and the word-of-mouth is no longer the same as before. The enterprises that once stood in the air are facing great difficulties and choices.

A cooling market

In 2021, the market size of self-heating hot pot in China is 10.37 billion yuan, and it is expected to reach 12.06 billion yuan in 2022, with an increase rate of 16.3%. Compared with previous years, the growth rate will slow down after 2020. It is predicted that the market scale will reach 14.89 billion yuan this year, with a growth rate of 23.47%. However, the slowdown of market growth in recent years is the general trend.

A large number of unsalable self-heating hot pots appear in discount retail stores, and the prices are reduced. Not only that, in the conventional supermarket channel, products with brand-new production dates also joined the promotion on the first day. Even on the e-commerce platform, the prices of some brands’ self-heating chafing dishes have dropped to 9.9 yuan, and most brands also offer discounts all the year round, and the prices are mostly in 10 yuan.

Perhaps the only retail channel that can sell self-heating hot pot at a "positive price" is a convenience store. If the industry has really "pressed the goods to explode" to the extreme, it will be cornered after "the price is sold out".

Brand status quo

The brand of self-heating hot pot, which was in the limelight two years ago, is now facing unprecedented difficulties.

The data shows that the operating income of Shiguo in 2019, 2020 and 2021 was nearly 800 million yuan, 958 million yuan and 992 million yuan respectively, and the operating income in 2022 was 820 million yuan, down nearly 20%; In 2020-2022, the sales volume of Yihai International instant food products was 1.54 billion, 1.73 billion and 1.87 billion. Although it still maintained growth, the growth rate has dropped to 9.8%. Mo Xiaoxian earned 400 million yuan in 2020 and exceeded 1 billion yuan last year. However, after the epidemic is unsealed, it is convenient to eat in the hall and take out food, and the bright achievements of fast food brands may become a thing of the past.

At the shopping festivals of major e-commerce platforms, these brands almost no longer publish battle reports.

Comparing the data of major self-heating hot pots on the vibrating platform during the activities in double 11 in 2022 and double 11 in 2023, it is found that the growth rate of brands with self-heating hot pot products as the main products is almost declining. For example, the sales volume of Yuxin brand during double 11 last year was estimated to reach 250,000, and only 25,000 copies were sold this year, down 90% year-on-year; The sales volume of self-contained pots decreased by 50% year-on-year; However, the proportion of self-heating hot pot is not high among a few growing brands, such as Haidilao and Mo Xiaoxian.

Cause of excessive gas

It’s not unreasonable that the hot pot is out of breath. With the freshness of consumers passing, many problems of the product itself are exposed and have not been solved and optimized so far.

[High price] used to be one of the factors that consumers care about, but obviously, there are other more fatal problems in the self-heating hot pots with reduced prices. According to the survey data, the worst reason for the poor experience of self-heating hot pot in China is that the ingredients are not fresh, accounting for 44%, the second reason is that they feel unhealthy, accounting for 42.1%, the third reason is that there are security risks, accounting for 38.3%, the taste is not good, accounting for 35.6%, and there is no hot pot taste, accounting for 28.4%. These factors restrict the development of self-heating hot pot products.

Self-heating hot pot is called "convenient version" hot pot at home. Consumers will inevitably compare it with the eating experience of hot pot restaurants. Compared with other fast food products, the requirements are naturally higher. At the same time, the self-heating hot pot contains high food additives and calories, and the inevitable heavy oil and heavy salt also discourage consumers who pay attention to diet health. Under the trend of healthy eating in recent years, the "unhealthy" cognition of products will inevitably hinder the development of self-heating hot pot.

The road of brand self-help

Faced with the cruel market situation and the crisis of being eliminated, brands have to take measures to save themselves.

For example, Zigui Pot Company launched four new brands in addition to the original brands, trying to build a brand matrix. At the same time, it has made great strides into the upstream supply chain. In 2021, Zigui Pot and the government invested 2 billion yuan to set up 15 factories, realizing the self-construction of prefabricated vegetables, staple food and product assembly. We also tested the product sales for offline channels through supplier cooperation+push team, but the results of market feedback were not satisfactory. Finally, since the pot has to be acquired this year.

Mo Xiaoxian, on the other hand, aimed at the sinking market, chose products with high cost performance, catered to the consumption upgrading trend of young people in the county, made instant noodles with zero fat and zero additives, and sold them to supermarkets and small shops in rural areas. It is Mo Xiaoxian’s way to save himself by deep cultivation of sinking market to obtain rich market increment.

How to break through the current predicament of self-heating hot pot still needs to make more efforts in product quality, taste and cost performance. Otherwise, the self-heating hot pot will one day step into the abyss of exhausted flow and bleak future.