Shrimp Paste Hotpot Expansion Wave: ¥59 ROI Logic and Risk Analysis

¥59/person shrimp paste hotpot lets small-town youth enjoy "shrimp paste freedom."

Recently returning home, Neicanjun found that a small second-tier city in Hebei had opened several "shrimp paste self-service hotpot" restaurants.

Unlike regular hotpot buffets, these are more like "shrimp paste museums": from original to fish roe, mushroom, squid, and even dragon fruit shrimp paste, up to a dozen varieties.

Besides shrimp paste, stores also offer chicken, beef, and fish "paste derivatives," packed in bamboo tubes, arranged in rows in cold cabinets.

Along with shrimp paste, the hotpot also includes beef, lamb, vegetables, and mushrooms, as well as traditional buffet items like desserts, drinks, and ice jelly; some shops even add pizza and other staples.

Most consumers go for "shrimp paste freedom."

In fact, over the past year, a batch of chain shrimp paste hotpot brands have emerged in Hebei alone, even expanding to other provinces.

For example, Shijiazhuang's Cijie Fresh Shrimp Paste Hotpot, founded last year, now operates 66 stores reaching Shandong, Jilin, Jiangsu, etc. Also founded last year, Chengkebei Shrimp Paste Hotpot has nearly 40 stores across Hebei, Shanxi, Heilongjiang, and Jilin.

Zhejiang's first Jianglaolao Shrimp Paste Seafood Hotpot now covers 12 provinces with 20 new stores this year alone. Founded in 2018, Laoxiaoxian Shrimp Paste Seafood Hotpot accelerated expansion last year, opening 40 new stores since 2025.

The category has even become popular in South Korea. Netizens report South Korea also has shrimp paste hotpot, with bamboo tube and shrimp paste setups similar to China's.

Why Shrimp Paste: Growth Data and "ROI" Expectations

Several factors drive the rise of shrimp paste hotpot.

First, shrimp paste is increasingly used in food service and is already a classic hotpot staple.

Data from MayWin's offline retail monitoring network shows 2025 shrimp paste sales grew 56.9% year-on-year, with sales volume up 60.6%, the fastest among frozen food subcategories.

In Zhejiang, Jiangsu, Anhui, Hunan, and Guizhou, shrimp paste even replaced beef balls as the top hotpot meatball category.

Second, shrimp paste is inherently premium, meeting consumers' ROI expectations.

Despite popularity, the "frozen dark horse" is pricey. For example, Haidilao's signature large-grain shrimp paste (~140g) costs ¥74. Even in supermarkets, Anjoy shrimp paste can be ¥16.5/150g.

In contrast, eating several servings at a self-service hotpot easily offsets the ¥59 entry fee, and adding other items ensures a "ROI," making it highly attractive.

Upstream Supply Chain Strengthens: Standards Drive Scale

Most importantly, the shrimp paste upstream supply chain is growing stronger, with rising production techniques and volumes.

For example, Daixiaji focuses solely on shrimp paste, leading the drafting of the group standard "Shrimp Paste" in 2023 and the national standard "Frozen Shrimp Paste" in 2024, now achieving monthly sales over 100 million yuan and annual revenue exceeding 1 billion yuan.

For the food service and hotpot sectors, a strong upstream supply chain is crucial for cost reduction and quality assurance. The rise of these shrimp paste supply chains has paved the way for shrimp paste self-service hotpot.

Will It Be the Next "Beef Ribs"? Expansion Speed and Homogenization Repeat Purchase Test

Will shrimp paste hotpot become the next "beef ribs"?

Data from Chenzhi Big Data shows that in the past year, shrimp paste self-service hotpot stores grew from under 10 to over 500, mainly in down markets.

Creating differentiation through a single-category buffet model and rapidly opening stores inevitably draws comparisons to the similar "beef ribs buffet."

The latter rose quickly in H2 2024 and then saw mass closures in early 2025, with some merchants losing over 2 million yuan in just three months.

Unlike beef ribs, which opened when beef prices fell and closed when they rose, shrimp paste costs are relatively more controllable, especially with a strengthening upstream supply chain.

But note: ingredient cost is only the last straw for beef ribs.

Another big reason for beef ribs' decline is that most stores just rode the "beef ribs" trend without converting category heat into brand repeat purchases, ultimately exiting a homogenized market.

For these emerging shrimp paste hotpot brands, tests of differentiation, product innovation, and store operations still lie ahead. Whether they can achieve long-term scale remains to be seen.