Market Insights eCommerce Online Food Delivery

Grocery Delivery - China

China

The projected revenue in the Grocery Delivery market in China is estimated to reach €243.20bn by 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 11.40%, resulting in a projected market volume of €417.20bn by 2029.
The Retail Delivery market China is projected to have a market volume of €169.30bn in 2024.
In comparison to other countries globally, China is anticipated to generate the highest revenue in the Grocery Delivery market, amounting to €243.20bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be €348.10 in 2024.
The number of users in the Grocery Delivery market is expected to reach 1,001.0m users by 2029.
The user penetration rate in the Grocery Delivery market China is estimated to be 48.8% in 2024.
The rise of e-commerce giants like Alibaba and JD.com has fueled the rapid growth of online grocery delivery services in China.

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Analyst Opinion

The grocery delivery market in China has seen significant growth in recent years, driven by a combination of changing consumer preferences and technological advancements.

Customer preferences: Chinese consumers place a high value on convenience and efficiency, which has led to a growing demand for grocery delivery services. This is particularly true in urban areas, where busy lifestyles and limited access to transportation make it difficult for consumers to shop for groceries in traditional brick-and-mortar stores. Additionally, the COVID-19 pandemic has accelerated the adoption of online grocery shopping, as consumers seek to minimize their exposure to crowded public spaces.

Trends in the market: One of the most notable trends in the Chinese grocery delivery market is the dominance of large e-commerce platforms such as Alibaba and JD.com. These companies have invested heavily in logistics infrastructure and are able to offer fast and reliable delivery services to consumers across the country. In addition, many traditional brick-and-mortar retailers have also entered the market, either by partnering with e-commerce platforms or by developing their own delivery capabilities.Another trend in the market is the increasing use of technology to improve the customer experience. For example, many grocery delivery companies are using artificial intelligence and machine learning algorithms to personalize recommendations and improve delivery efficiency. Additionally, some companies are experimenting with new delivery models, such as autonomous vehicles and drones, to further reduce delivery times and costs.

Local special circumstances: China's unique market conditions have also played a role in shaping the grocery delivery market. For example, the country's vast size and population density make it difficult for traditional retailers to reach all consumers, particularly those in rural areas. Additionally, the prevalence of mobile payments and the widespread use of social media have made it easier for consumers to shop online and share their experiences with others.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the grocery delivery market in China. For example, rising incomes and urbanization have led to a growing middle class with increased purchasing power and a greater demand for convenience. Additionally, government policies aimed at promoting e-commerce and digital innovation have helped to create a favorable business environment for grocery delivery companies. Finally, the COVID-19 pandemic has accelerated the adoption of online shopping and delivery services, which is likely to have a lasting impact on consumer behavior.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.