Restaurant Delivery - China

China

Highlights

The Restaurant Delivery market in China is projected to reach a revenue of US$17.63bn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.94%, resulting in a projected market volume of US$20.37bn by 2029.
In terms of user base, the number of users is expected to reach 265.6m users by 2029.
The user penetration rate, which currently stands at 16.4% in 2024, is anticipated to increase to 18.6% by 2029.
The average revenue per user (ARPU) is projected to be US$74.97.
In a global context, United States is expected to generate the highest revenue in the Restaurant Delivery market, reaching US$36.95bn in 2024.
However, it is worth noting that South Korea is projected to have the highest user penetration rate with a rate of 44.8%.
China's restaurant delivery market is booming as consumers increasingly opt for the convenience of ordering food online.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The rise of online food delivery platforms has revolutionized the food industry in China, making it more convenient and accessible for consumers to order food from their favorite restaurants.

Customer preferences: Chinese consumers are increasingly turning to online food delivery platforms due to their busy lifestyles and the convenience they offer. The younger generation, in particular, is more inclined to use these platforms as they are more tech-savvy and comfortable with using mobile apps for ordering food. Moreover, the COVID-19 pandemic has further accelerated this trend as people prefer to stay at home and order food rather than venturing out to restaurants.

Trends in the market: The online food delivery market in China is highly competitive, with several players vying for market share. The two dominant players in the market are Meituan and Ele.me, which together account for over 90% of the market. These platforms offer a wide range of cuisines and restaurant options, along with attractive discounts and promotions to attract customers. They also offer additional services such as grocery delivery, hotel bookings, and movie ticket bookings to enhance their value proposition.

Local special circumstances: One unique aspect of the food delivery market in China is the prevalence of group buying, where customers can avail of discounts by ordering food in bulk with their friends or colleagues. This has become a popular trend in China, especially among the younger generation, as it allows them to enjoy food at a lower cost while also socializing with their peers.

Underlying macroeconomic factors: The growth of the food delivery market in China is also driven by macroeconomic factors such as rising disposable incomes, urbanization, and changing lifestyles. As more people move to urban areas and work longer hours, they have less time to cook at home and prefer the convenience of ordering food online. Additionally, the increasing popularity of mobile payments and the widespread use of smartphones have made it easier for consumers to order food online. In conclusion, the online food delivery market in China is expected to continue its growth trajectory in the coming years, driven by changing consumer preferences and macroeconomic factors. The market is likely to witness further consolidation, with the dominant players expanding their offerings and services to capture a larger share of the market.

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.