Mid-Autumn Festival Boosts Catering Industry and Consumer Spending in China

Mid-Autumn Festival Boosts Catering Industry and Consumer Spending in China

The three-day Mid-Autumn Festival holiday, which started on September 15, is driving strong growth in China’s catering, tourism, and retail sectors. As families gather to celebrate the traditional festival with dinners, mooncake-sharing, and lantern appreciation, analysts predict this boost in consumer activity will have a significant impact on the economy.

The holiday’s cultural significance has sparked a surge in demand for family meals and holiday treats. According to Douyin’s local lifestyle services platform, searches for “family reunion meals” increased by 88% between September 7 and 13, while group meal deals for four or more people tripled. There was also a 111% rise in group orders for mooncakes, as reported by state-owned news outlet southcn.com.

Local specialties have become holiday favorites, with items like Yangcheng Lake hairy crabs from Suzhou and fresh produce from Yunnan Province seeing strong demand. Experts believe this heightened consumption, combined with increased consumer confidence, highlights the role of spending as a key driver of economic growth.

E-commerce giant Meituan reported a 433% week-on-week spike in searches for “Mid-Autumn restaurants,” with themed group-buying orders rising by over 76%. Popular restaurants like Baikui in Beijing quickly filled up reservations for the holiday, with eager patrons lining up for last-minute spots.

The Mid-Autumn Festival has also bolstered wine sales, which are popular for gifts and banquets. Lei Yumeng, general manager of Zhejiang-based wine importer Xuanyi International Trade Co., noted a 30% rise in August sales compared to July, driven by strong consumer confidence and gift-giving traditions associated with the festival.

Catering companies have introduced creative marketing strategies to capture holiday demand. The Chinese restaurant chain Quanjude, for example, hosted cultural events featuring mooncake deliveries by individuals dressed as Chang’e, the moon goddess from Chinese mythology. Hotpot chain Xiabu Xiabu introduced group meal packages to appeal to families and friends gathering for the holiday.

Young travelers are also turning to food as a primary motivator for holiday trips. Zeng Zhao, a university student from Hangzhou, shared his plans to follow food bloggers on Bilibili and explore new cuisines during his Mid-Autumn travels.

The Mid-Autumn Festival is not just a celebration of tradition but also a key driver of economic activity, particularly in the catering industry. Liu Dingding, a veteran industry observer, emphasized that the holiday reflects the resilience and potential of China’s consumer market.

In the first half of 2024, revenue from China’s catering industry reached 2.6 trillion yuan (US$366.5 billion), up 7.9% year-on-year, accounting for 22.8% of total retail sales of consumer goods. This shows the significant role of the catering sector in fueling China’s economic growth.