China Online Food Delivery Market Report and Forecast 2024-2032

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China dominates the Asia online food delivery industry. It accounts for almost 70% of the industry on the continent. Restaurant-to-consumer delivery leads the industry over platform-to-consumer delivery in China. However, the platform-to-consumer delivery option is expected to witness a faster growth. Pizza is a popular product in China's food delivery sector and is also the dominating segment in the online food delivery market in the country. Thus, the growing consumption of pizza is expected to drive the industry in the coming years. In 2018, China’s pizza sales reached a total value of nearly USD 3.6 billion. Pizza sales are expected to witness a robust increase of 20% in the coming five years in the Asian country.

An expanding consumer base is driving the industry growth. The delivery applications in China are witnessing a continuous growth in the number of monthly active users. In December 2018, the number of active users on these applications reached over 102 million. The online food delivery industry in China is highly concentrated. It is dominated by Ele.me and Meituan Dianping, who together accounted for almost 90% of the industry share in 2018. Baidu Waumai, Baidu’s food delivery arm, was the third-largest player in the Chinese industry. However, Baidu Waumai was acquired by its major rival, Ele.me, and rebranded as Star.Ele.me in October 2018. It will continue operating as a sub-brand of Ele.me, which will offer premium food, and is targeted towards a high-end market. Both the major players in the Chinese industry are supported by the leading on-demand companies in China. While Ele.me operates as an independent subsidiary of Alibaba Group, after its acquisition by the online retail giant in April 2018, Tencent, on the other hand, has a majority stake in Meituan Dianping. Meituan Dianping is the leading online food delivery company of the two major players in the industry. It has expanded its customer base to smaller cities of China and accounts for a daily order of nearly 20 million.

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Market Segmentation

Market Analysis

The China online food delivery market is being driven by the healthy economic growth and the high population density in the urban areas of the country. China has been one of the largest contributors to the world economy since the 2008 financial crisis. Although its GDP growth has slowed down from its annual average of 10% since 2012, the country is still witnessing a robust economic growth. According to China’s 13th Five-Year Plan, the annual growth target of the country is 6.5%, with the aim of doubling its GDP by 2021, as compared to 2010. It is an upper-middle-income nation. The growing middle class in China is expected to drive the online food delivery industry as people are willing to spend more for convenience.

The rising penetration of internet and smartphones in the country is expected to aid the online food delivery industry further. The high user penetration rates for these platforms are also driving the industry growth. The industry is driven by the younger consumers in China who define and influence the consumption patterns and are more experimentative in their tastes. The overall increase in consumption level is also aiding the online food delivery industry. The user-friendly optimisations of these applications like multiple payment options, the ability to track the order, and an easy-to-navigate interface are attracting new consumers to these platforms. The industry is also being aided by the subsidies provided by the major players, which are aimed to reduce costs for both the users and the partner restaurants. The aggressive marketing campaigns being undertaken by these industries will also aid the industry. In the coming years, the industry is expected to be driven by the innovations in the food delivery process, which is expected to become more automated and convenient.

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Competitive Landscape

The report provides a detailed analysis of the China online food delivery market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions and investments, plant turnarounds, and capacity expansions:

• Meituan Dianping
• Ele.me 
• DiDi Food
• Others

The comprehensive report by EMR assesses the market based on the Porter’s Five Forces model. A SWOT analysis has also been provided.