China Online Food Delivery Market

China Online Food Delivery Market Size:

The China online food delivery market size reached USD 81.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 197.9 Billion by 2033, exhibiting a growth rate (CAGR) of 9.79% during 2025-2033. The growing internet penetration, rising consumer preference for convenience, a wide variety of cuisine options, aggressive marketing by leading platforms, and the integration of advanced technologies like artificial intelligence (AI) and big data to enhance user experience are some of the factors impelling the market growth in China.

China Online Food Delivery Market Analysis:

• Major Market Drivers: The market is experiencing strong growth owing to the increasing need for convenient and time-saving benefits of online delivery among individuals with hectic lifestyles. Furthermore, advancements in delivery technology, like live tracking and streamlined logistics, combined with competitive promotional tactics from top platforms, are influencing the online food delivery market in China.
• Key Market Trends: Consumers are becoming more health conscious, leading to a rise in demand for healthy and organic food choices. Additionally, the merging of artificial intelligence (AI) and big data analytics to customize user experiences and enhance delivery routes is bolstering the market growth.
• Geographical Trends: Guangdong dominates the market attributed to the growing internet penetration, a tech-savvy population, and busy lifestyles.
• Competitive Landscape: Some of the major market players in the industry include Ele.me, Meituan Dianping, ENJOY, Daojia and Home-cook, among many others.
• Challenges and Opportunities: Challenges involve stringent regulations, fierce competition, and ensuring food quality remains high during the delivery process. However, opportunities account of advancements in technology, entering new rural markets, and broadening product range to include groceries and meal kits are supporting the market growth.

China Online Food Delivery Market Trends:

Urbanization and Changing Lifestyles

The rate of urbanization for people living in one place all year increased by more than three times since 1982, reaching 66.2% in 2023 as per the China in Numbers (2023) report by the United Nations Development Programme (UNDP). An increasing number of individuals are moving to metropolitan areas, resulting in the need for easy meal options that save time and lessen the hassle of cooking or eating at restaurants. Online food delivery services fulfill this need by providing a diverse selection of restaurant choices conveniently delivered to the homes of individuals, catering specifically to busy city dwellers. The younger generation, in particular, favors digital solutions and appreciates the convenience of ordering food online. Additionally, modern, fast-paced lifestyles increase the reliance on these services.

Advanced Technology Integration

The rapid evolution of technology and its seamless integration into everyday life are supporting the China online food delivery market growth. Artificial intelligence (AI) and machine learning (ML) technologies are used to tailor suggestions according to individual likes, purchase history, and online activity, improving user satisfaction and interaction. Big data analytics is utilized for optimizing delivery routes, forecasting demand patterns, and efficiently managing inventory to ensure timely and cost-effective service. Furthermore, the potential use of drones and self-driving vehicles for delivery in specific city locations is being examined to decrease delivery times and operational expenses. In December 2023, Meituan introduced its inaugural drone delivery service in Shanghai's Yangpu District, offering 15-minute deliveries within a 3-kilometer radius to improve service efficiency and decrease delivery times. This was the 22nd drone route of the company in China, aiming at busy locations to ensure the freshness of food and on-time delivery. The technological progress enhances both the effectiveness and dependability of food delivery services, giving a competitive advantage to the platforms that integrate them, drawing in more users, and driving market expansion.

Marketing and Promotional Strategies

Businesses use discounts, loyalty programs, and targeted advertising strategies to draw in and keep users. Aggressive marketing campaigns that utilize social media and influencer partnerships are helping to increase brand visibility and engage people. These promotional strategies not only aid in gaining new users but also promote repeat business, which is essential for long-term growth. Online food delivery platforms can stay ahead of the competition by consistently coming up with new marketing strategies like providing customized offers and generating interesting content. Their ability to adapt helps them succeed in a competitive market, making sure they remain attractive to their individuals. For instance, in August 2023, Ele.me introduced a digital night market in Changsha, working with local authorities to enhance the city's night economy through exclusive deals and virtual market experiences available on its app. The promotion involved a live event at Yangfan Night Market, improving the market atmosphere with joint promotions and interactive events.

China Online Food Delivery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on platform type, business model, and payment method.

Breakup by Platform Type:

• Mobile Applications
• Websites
   

Mobile applications account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the platform type. This includes mobile applications and websites. According to the report, mobile applications represented the largest segment.

Mobile applications account for the majority of the market share because of the extensive usage of smartphones and the convenience they provide. Mobile apps are transforming the food delivery sector with user-friendly interfaces, real-time order tracking, and personalized suggestions, improving the overall individual experience. The inclusion of different payment choices and loyalty schemes in these apps also increases user interaction and loyalty. Key players in the industry regularly update their mobile apps with innovative features, such as AI-powered recommendations and voice-enabled ordering to meet the changing needs of tech-savvy individuals. As a result, mobile apps not only make ordering fast and easy but also help build a loyal user base, solidifying their position as the main platform in the online food delivery market. In December 2023, McDonald's China joined forces with Huawei to create a custom app for HarmonyOS, allowing users to order meals on various devices, supporting Huawei's goal of increasing HarmonyOS usage in China.

Breakup by Business Model:

• Order Focussed Food Delivery System
• Logistics Based Food Delivery System
• Full Service Food Delivery System
   

Order focussed food delivery system represents the leading market segment

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes order focussed food delivery system, logistics based food delivery system, and full service food delivery system. According to the report, order focussed food delivery system accounted for the largest market share.

Order focussed food delivery system represents the largest segment as per the China online food delivery market outlook. This model helps individuals and restaurants to place orders more efficiently by using advanced digital platforms to simplify the ordering process. It offers individuals a diverse selection of restaurants, enabling them to view menus, place orders, and process payments all within one central system. The efficiency and simplicity of this model attract a broad user base, particularly urban consumers seeking quick and convenient meal solutions. By concentrating only on the ordering process and collaborating with many restaurants, these platforms are able to provide competitive prices and regular promotions, making them more attractive. The scalability and ease of integration with various restaurant operations are making the order focussed food delivery system the leading business model in the market.

Breakup by Payment Method:

• Online
• Cash on Delivery
   

Online leads the market, accounting for the largest China online food delivery market share

The report has provided a detailed breakup and analysis of the market based on the payment method. This includes online and cash on delivery. According to the report, online represented the largest segment.

Online is the most dominant segment in the market, driven by the increasing popularity of digital wallets, mobile banking, and the smooth incorporation of diverse online payment choices in food delivery applications. The market size for digital payments worldwide is projected to grow at a compound annual growth rate (CAGR) of 15.62% from 2024 to 2032, as per the IMARC Group. The ease and safety of online payments, which decrease the necessity for dealing with physical money, is improving overall user satisfaction. Additionally, online payment options frequently include extra benefits like reduced prices, cashback promotions, and loyalty rewards, which attract more users. The quick processing and delivery of online transactions drive the dominance of this segment in the market. As digital payment infrastructure continues to improve, online payment methods are expected to maintain their leading position, reflecting broader trends towards cashless transactions in China.

Breakup by Region:

• Guangdong
• Jiangsu
• Shandong
• Zhejiang
• Henan
• Others
   

Guangdong holds the largest share of the industry

The report has also provided a comprehensive analysis of all the major regional markets, which include Guangdong, Jiangsu, Shandong, Zhejiang, Henan, and others. According to the report, Guangdong represents the largest regional market.

Guangdong dominates the market because of its reputation as a highly developed and economically successful region, with cities such as Guangzhou and Shenzhen acting as key centers for technology and business. In June 2024, Sam’s Club in Shenzhen launched an online shopping and delivery service for Hong Kong residents, aiming to attract people seeking better deals across the border. This move posed a competitive threat to local retailers like ParknShop and Wellcome, prompting them to enhance their services and expand their sourcing networks to retain users. The high digital penetration and crowded population make these cities perfect for the quick uptake of online food delivery services. Furthermore, the varied food culture and fast-paced lifestyle in the area lead to a strong need for accessible food delivery services. The advanced logistics networks and widespread internet connectivity in Guangdong enable food delivery services to operate efficiently due to the excellent infrastructure.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include Ele.me, Meituan Dianping, ENJOY, Daojia, and Home-cook.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Major players in online food delivery in China are concentrating on technological advancements, broadening their range of services, and improving user satisfaction in order to stay ahead of competitors. They are making investments in AI and big data analytics in order to offer customized suggestions, enhance delivery routes, and improve operational effectiveness. Collaborations are being formed with a variety of restaurants and food suppliers to provide a range of food choices. On May 9, 2024, The Shilla Duty Free and Meituan Dazhong Dianping signed a business agreement to collaborate on attracting Chinese travelers. This partnership aimed to utilize Meituan Dazhong Dianping's extensive user base for joint marketing initiatives targeting tourists visiting Korea. Moreover, these firms are improving their mobile apps to incorporate functions such as live tracking, touchless delivery, and integrated electronic payment systems. Marketing tactics, including discounts and loyalty programs, are utilized to draw and retain clients in a fiercely competitive market.

China Online Food Delivery Market News:

• April 2024: Ele.me and fitness app Keep collaborated on a reverse marketing campaign, showcasing ads at Shanghai's Xujiahui Metro Station. The humorous campaign pointed out the struggle between aspiring to fitness goals and giving in to the temptation of food delivery, while also advertising discounts on healthy meals on Ele.me.

China Online Food Delivery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the China market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.