Chongqing—Many people may know China’s famous hotpot, but fewer have tried Chuanchuanxiang—a Sichuan dish where various meats and vegetables are served on skewers and cooked in a spicy broth, offering a quicker, street-style take on the classic hotpot experience.
According to the 2025 Chuanchuanxiang Industry Innovation Report released by the Chongqing Hotpot Industry Association and Donglai Catering Consulting, the industry's total market value is projected to reach 850.1 billion yuan (about 119.3 billion U.S. dollars) in 2025.
Originating in the bustling night markets of Chengdu and Chongqing in the 1980s and 1990s, Chuanchuanxiang began as a humble street food—vendors served skewered meats and vegetables cooked in a shared pot of spicy broth, turning an everyday meal into an affordable and social dining ritual.
Niuxiangge Chuanchuanxiang showcased at the 10th China (Chongqing) International Hotpot Industry Expo. (Photo/HOTPOTEX)
By the 2000s, permanent shops began introducing standardized broths and dishes, making chuanchuanxiang more accessible to urban diners. Around 2010, chain brands such as Gangguanchang Wuqu Xiaojungan leveraged nostalgic storytelling and franchise models to expand across China, transforming what was once a local street snack into a nationwide culinary trend.
According to the report, as of September 2025, China is home to over 46,000 chuanchuanxiang restaurants. The Sichuan-Chongqing region remains the category's heartland, while Sichuan, Shaanxi, and Henan top the list of provinces by store count.
Growth, however, is shifting from first-tier cities to smaller markets. Third- and fourth-tier cities are becoming the next hotspots, driven by lower rents, cheaper labor, and rising demand for affordable, high-quality dining options.
With expansion slowing, the chuanchuanxiang market has entered what analysts call a stock competition phase- where success depends on standing out, not scaling up.
Brands are now seeking differentiation in four key areas: menu innovation, signature dishes, store formats, and marketing strategy.
For example, Haijiaoshi Chuanchuan, a chuanchuanxiang restaurant in Chengdu, has introduced combining chuanchuanxiang, barbecue, and frying in one dining experience. Another brand, Malubianbian Chuanchuan, has turned its retro-themed restaurants into immersive social venues, selling atmosphere as much as food. Other chains are introducing premium ingredients such as Wagyu beef and seafood to elevate their image.
Despite the strong numbers, the report warns of growing homogenization across the market. With low entry barriers and copyable business models, many brands are locked in price wars and traffic battles.
To compete effectively, the report urges a shift toward core capability innovation, such as investing in proprietary recipes, patented techniques, and vertically integrated supply chains. Suppliers, it adds, are evolving from simple back-end providers to strategic partners, offering digitalized management systems, ingredient customization, and flexible logistics.
As China's younger consumers look for more personalized dining experiences, customization is emerging as a new growth driver. Some chuanchuanxiang restaurants have rolled out DIY sauce bars, letting customers mix dipping sauces to match their own tastes, a small detail that boosts both engagement and brand differentiation.
The report says that future competition will depend less on the number of outlets and more on supply-chain efficiency, brand culture, and consumer experience, signaling a shift toward higher-quality, innovation-driven growth in China's rapidly evolving dining market.