As a developing economy, China yet does not rank among the top ten countries
. However, modern technologies have changed the Chinese people's day-to-day life significantly, including how they eat. China has the largest
worldwide, which has exceeded 540 million users. In 2024, China was forcasted to generate almost 450 billion U.S. dollars in
, 100 billion U.S. dollars more than the United States. This gap is expected to persist in the next few years.
Market snapshot
Meituan and Ele.me are two of the
leading online food ordering platforms in China taking over 90 percent of China's online food delivery market. The largest shareholder of Meituan is China's internet giant
Tencent, while Ele.me is operated by
Alibaba Group. By the end of 2019, a total of three million
restaurants were listed on these two aforementioned platforms, covering a broad range of China's major cities. The thriving online food delivery industry has created millions of jobs.
After a long and tiring working day, ordering food online has became a convenient and affordable solution for younger Chinese to enjoy a nutritious meal. More than 80 percent of the
online food delivery service users in China are under 35 years old, and most of them are office workers. Chinese consumers are sensitive to the price of the food as much as the quality. Therefore, online food delivery platforms often incentivize new and existing consumers through discount activities and free delivery. In 2023, majority of Chinese consumers
spent less than seven U.S. dollars on getting a meal delivered.
Pandemic-proof
The online food delivery market in China saw a remarkable surge in demand during the COVID-19 pandemic while people stayed indoors and used delivery services to reduce human-to-human contact. Key market players
Meituan and Ele.me recorded a spike in orders and revenues. The changing circumstances have introduced not only new consumer needs and new demographics into the market, but also prompted food delivery platforms to expand their services. This extended to
grocery and medicine deliveries to better cater to the customers during the nation-wide lockdowns. With online food delivery becoming more convenient, affordable, and popular in China, it is likely that this trend will continue even as the pandemic recedes.
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