China Online Grocery Market Report and Forecast 2025-2034

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China Online Grocery Market Growth Rate

An online grocery platform can be a website or a mobile application of a supermarket or a local grocery store that allows ordering grocery online, or an e-commerce service selling grocery. These platforms sell the fruit, vegetables, and other household items.

The key drivers aiding the growth of the China online grocery market include the country's significant e-commerce and retail sector. It was the largest e-commerce market in 2016 with sales of nearly USD 366.1 billion. The e-commerce industry is also being aided by the supportive policies of the Chinese government. The government is driving the growing penetration of the e-commerce industry, especially in the rural areas, by building infrastructure to aid the e-commerce sector regionally. Although the e-commerce industry is dominated by apparels and footwear, online grocery is a small but fast-growing segment in the industry.

Alibaba and JD.com are largest online grocery retailers in the market, with Alibaba expected to expand its reach both domestically and globally following positive consumer response. The packaged food sector dominates the online grocery sector in the country. In 2016, online sales of packaged food surpassed USD 18.4 billion, with baby food, dairy, rice, pasta, and noodles being popular among Chinese consumers. Other important segments in the online grocery sector are beverages, fresh foods, and packaged products.

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Key Trends and Developments

China Online Grocery Market Trends

The market is also being driven by the higher penetration of internet and smartphones. Smartphones have become prominent devices through which Chinese consumers not only research but also purchase edible goods. Online grocery retailers often offer exclusive discount and promotions on purchases made through mobile phones, thus, making mobile applications a significant retail channel in China. The rise in the online payment applications and the shift towards going cashless is aiding the China online grocery market development.

The high population density in the urban areas of China, where the millennial consumers are willing to experiment with new platforms and try out international brands is driving the China online grocery industry growth. As the industry is focusing more on maintaining its customer base in tier 1 cities, the major players are also looking to expand to tier 2 and 3 cities and towns. The rising middle class with higher disposable incomes and more spending power is driving the online grocery market in China.

The industry is being propelled forward by the rise in infrastructural support for e-commerce ventures and continuous improvement in the logistics technology, such as adoption of electric delivery fleet. Moreover, the attractive prices and offers provided by the platforms, such as discounts, cashback offers, flexible return policy and exclusive subscription offers, like low delivery charges, are ensuring customer retention along with attracting new customers, which is providing further impetus to the market development.

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China Online Grocery Industry Segmentation

China Online Grocery Market Share

Web-based and app-based platforms are popular as they offer convenience, wide product selection, and the ability to leverage digital payment methods

The online grocery market in China includes web-based platforms, which are websites or online portals of supermarkets and local grocery stores that allow consumers to order groceries online. For example, Alibaba's Tmall Supermarket and JD.com's JD Super are two prominent web-based online grocery platforms in China. These web-based platforms provide customers with the convenience of shopping for a wide range of grocery items, including packaged foods, fresh produce, beverages, and household products, from the comfort of their homes or offices.

In addition to web-based platforms, the market is also driven by app-based platforms. These are mobile applications developed by supermarkets, grocery stores, and e-commerce companies that enable consumers to purchase groceries using their smartphones or tablets. For instance, Meituan, a leading on-demand delivery platform in China, has a dedicated grocery delivery app that allows users to order a variety of fresh and packaged food items. The rise in smartphone penetration and the growing preference for mobile shopping have contributed to the increasing adoption of app-based online grocery platforms in China.

Online payment methods hold a significant market share due to rising popularity of digital wallets and security offered by online payments

Online payment methods dominate the China online grocery market share, with digital wallets like WeChat Pay and Alipay being the most popular options. These digital wallets are widely used by Chinese consumers, accounting for more than 90% of the mobile payments market. For example, when shopping on Alibaba's Tmall Supermarket or JD.com's JD Super, customers can easily make payments using their preferred digital wallet, ensuring a seamless and secure transaction process. The convenience and security offered by online payment methods have contributed to their widespread adoption, making them the preferred choice for online grocery purchases in China.

As per China online grocery market analysis, cash on delivery is another significant payment option in the market. This method allows customers to pay for their groceries upon delivery, providing a sense of security and trust for those who prefer not to make online payments. For instance, Meituan's grocery delivery service allows customers to choose cash on delivery as a payment option, catering to those who prefer traditional payment methods or have concerns about online transactions. Cash on delivery remains a popular choice for some consumers in China, offering a convenient and familiar way to complete their online grocery purchases.

Leading Companies in the China Online Grocery Market

Another key player in the China online grocery market report includes Miss Fresh, among others.

China Online Grocery Market Analysis by Region

Shangai and Beijing have a robust e-commerce sector, which facilitates market growth

Shanghai is a major hub for online grocery in China. Platforms like Alibaba's Tmall Supermarket and JD.com's JD Super are catering to the rising demand for convenient grocery shopping. Shanghai's online grocery market is expected to continue its positive trajectory due to the city's high population density and tech-savvy consumers.

As the capital city of China, Beijing is a significant player in the country's online grocery market. Major players like Alibaba and JD.com have a strong presence in Beijing, leveraging the city's high purchasing power. Furthermore, Zhejiang, the home province of Alibaba, has a strong e-commerce and retail presence, which has translated into growth for the online grocery market. Platforms like Taobao and Tmall, both owned by Alibaba, have a significant foothold in Zhejiang's online grocery sector.

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China Online Grocery Market Report Snapshots

China Online Grocery Market Size

China Online Grocery Market Growth

China Online Grocery Market Trends

China Online Grocery Market Share

China Online Grocery Companies

China Online Grocery Market Regional Analysis