Seafood-focused fast food chains are driving Chinese demand for pangasius as firms import the whitefish for hot pots and other convenience foods.
One of the prominent players, Ai La Bo Bo (which also uses the English name ‘I Love Bo Bo’), plans to increase its outlet network from 700 to 1,000 stores in the next three years, according to Jiang Xiao, the Ye company founder and CEO who was talking to media in the company’s headquarters in Shijiazhuang, a city two hours by train from Beijing.
The firm serves pangasius in its hot pot series targeted at China’s urban youth, with typical dishes selling at CNY 20 (USD 2.96, EUR 2.64). One of the fast food firm’s key suppliers, Shanghai Fenglei International Trading Co., buys from Nam Viet Corp, a leading Vietnamese pangasius producer. Pangasius offers a better quality to price ratio than most other fish, according to Jiang, who is targeting sales in regional cities across China.
Pangasius has become popular as fast food franchising itself becomes a more popular investment play in China. Competing against the Ai La Bo Bo chain, the Dao He hot pot chain is seeking investors in regional cities for its restaurant chain, which uses the slogan “eat in five seconds” to tempt younger customers. Operated by Beijing-based conglomerate Hui Huang Food & Drink Management Co., the firm also sources pangasius from Vietnam.
Chinese demand for pangasius has made large firms like the Tongwei Group and Guangdong Evergreen seek sources of supply at home and in Vietnam. Shenzhen Hua Da Ocean Science and Technology Co – also known as BGI Shenzhen Co Ltd. – is aiming to farm and process 20,000 tons of pangasius per year in a joint venture in Laos. Meanwhile, Thai conglomerate CP also sells pangasius filets in Chinese supermarkets.
Growth in Chinese disposable income and urbanization are key drivers in the growth of mass market convenience dining as typified by the pangasius-consuming chains like Ai La Bo Bo. Projections by management consultancy McKinsey suggest 850 million Chinese people, or about 60 percent of the total population, will be living in urban areas in 2020, up from about 650 million in 2010. Meanwhile, numbers attending third-level education will also double, to 40 percent of school leavers. Average annual Chinese disposable income will have doubled to USD 8,000 (EUR 7,139) in 2020 compared to 2010 figures.
Chinese pangasius imports from Vietnam went from USD 80 million (EUR 71 million) in 2014 to almost USD 500 million (EUR 446 million) in 2017, with much product also being smuggled over the border.
