China is one of the largest e-grocery markets in the world and is poised for explosive growth in the future too. With a population of 1.4 Billion, the potential value growth in the Chinese online grocery market is phenomenal. COVID-19 pandemic has boosted the online groceries market in China, with demand for home fulfilment soaring to record high. China’s two largest ecommerce companies Alibaba’s Tmall and JD.com, have a strong position in online grocery. Walmart via JD.com and Sun Art Retail are other key online grocery retailers in China. According to Renub Research analysis, the China Online Grocery Market will be US$ 219 Billion by the end of the year 2026.
Factors Driving the Online Grocery Market in China
The rapid urbanization, rising income, food safety, and healthy diet leads to the growth of the packaged food market in China. Usage of Internet and smartphone is also growing across China, which is driving the online grocery segment. China’s demographics are changing too – there is growth in the number of the younger population.
The carbohydrates rich food such as rice, pasta, and noodles; confectionery, savoury snacks, baked goods, sweet biscuits are more consumed by younger generations as-well-as middle-income group peoples for changing the taste of tongue which drives the market growth. As the Chinese people are more alert towards their health; thus, they consume more protein-rich foods such as processed fruit and vegetables; processed meat and seafood etc.
Changing Trends of China Online Grocery Industry
The smartphones are the top leading purchasing channel compared to a personal computer for ordering groceries in the Chinese economy. The Chinese brick-and-mortar retailers are shifting towards online channel after the outbreak of Covid-19 through online players, delivery partners, technology companies and payment solution providers. During the coronavirus period, the sales of grocery items through online mode have drastically surged as these are count as essential foods for surviving.
For grocery brands, it’s unclear how this increase in online grocery share in China will affect revenue. Industry examiners development opportunities (“Online customer spend more”; Kantar Worldpanel 2015, p. 11) and fight that for primary food item brands to continue flourishing in China, they should develop with the triumphant (on the web) channel (Bain and Company and Kantar Worldpanel 2019). Be that as it may, which brands will profit—or endure—from the expansion of online staple, and why, isn’t clear. Unmistakable contrasts exist in online versus disconnected execution between brands. Though a few brands seem to hold identical pieces of the overall industry on the web and disconnected, others appreciate a prevailing situation in their class in the independent channel yet don’t appear to be prepared to catch an outsized segment of classification deals in the online channel, or the other way around (Kantar Worldpanel 2015). Also, disconnected versus online classification deals themselves seem to develop diversely as online expansions in prevalence (Bain and Company and Kantar Worldpanel 2019). What drives these differences? How can brand managers increase the probabilities of being on the winning end?
Renub Research report titled “China Online Grocery Market, by Segments (Packaged Food, Rice, Pasta and Noodles, Baby Food, Dairy, Confectionery, Savoury Snacks, Baked Goods, Edible Oils, Sweet Biscuits, Snack Bars and Fruit Snacks, Processed Meat and Seafood, Breakfast Cereals, Processed Fruit and Vegetables, Spreads, Ready Meals, Ice Cream and Frozen Desserts, and Soup), by Channel (Mobile, and Personal Computer), Company Analysis (Alibaba Group, JD, Tencent Holdings Ltd., Pinduoduo, Suning) & Forecast” provides an all-encompassing analysis on the China Online Grocery Market.
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Segments – This report Covers the 16 Markets by Segment
- Packaged Food
- Rice, Pasta and Noodles
- Baby Food
- Savoury Snacks
- Baked Goods
- Edible Oils
- Sweet Biscuits, Snack Bars and Fruit Snacks
- Processed Meat and Seafood
- Breakfast Cereals
- Processed Fruit and Vegetables
- Ready Meals
- Ice Cream and Frozen Desserts
Channel – Both the Channels are covered in the report
• Personal Computer
All the Five Companies have been studied from three points
• Recent Developments
- Alibaba Group
- Tencent Holdings Ltd.
Industry Related Opportunity:
Global eCommerce Market: https://www.renub.com/global-e-commerce-market-p.php
United States Online Grocery Market: https://www.renub.com/united-states-online-grocery-market-p.php
About the Company:
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