China Online Food Delivery Services Market Size: Industry Analysis, Share, Trends, Growth Opportunity Assessment, Market Outlook & Forecast 2017-2025

Market Overview

Online food delivery system in China is significantly growing supported by the 300 million active users of online delivery portals. China has room for the growth of food delivery service providers backed by the growth of hospitality industry, developing infrastructure, faster development and expansion of the cities. In 2016, China had 114 million online food delivery service users. Further, in 2016 of the total online shoppers, China accounted for 1/4^th shoppers were using mobile phones. China has high competitive environment for the food delivery services, which is led by Meituanwaimai that accounted for 32.2% market share in 2016. But since the beginning of online food delivery system, the service providers focus on increasing their market share, neglecting the management, audit and supervision of partner restaurants. Cases have been registered regarding the fictitious addresses and sanitary issues. It led to health problems to many consumers and thus caused the decline of online food delivery market.

China Online Food Delivery Market Segmentation

By Business Model

• Order Focused Food Delivery System
• Logistics Focused Food Delivery System
• Full Service Food Delivery System

By Platform

• Web Based
• Application Based

By Food Source

• Restaurants and Food Outlets
• Grocery Stores
• Supermarkets

By Payment method

• Online Payment
• Cash On Delivery (COD)

Based On Geography

• Tier-1 Cities Online Food Delivery Market {Market Share (%), Market Size (USD Billion)}
• Tier-2 Cities Online Food Delivery Market {Market Share (%), Market Size (USD Billion)}
• Tier-3 Cities Online Food Delivery Market {Market Share (%), Market Size (USD Billion)}

Market Size & Forecast to 2025

Goldstein Research analyst forecast that the China online food delivery market size is set to reach USD 48.1 million by 2025, growing at a CAGR of 7.2% over the forecast period. The factors such as improved logistics, increasing penetration of internet and smartphones and development of user-friendly food apps are majorly impacting the growth of China online food delivery market.

Based on geography, online food services cover around 1300 cities, where tier-1 cities accounted for largest market share of 46.5% in 2017 of the total China online food delivery services market. Tier-1 cities have developed infrastructure and higher personal disposable income of the people. As the economy of China is growing at a hastiest speed, tier-2 cities also have huge penetration of online food delivery services, and over the forecast period it is expected to grow at a CAGR of 7.3%.

Revenue Share by Business Model

On the basis of business model, logistic based food delivery system accounted for larger market share of 44.5% in 2017. Logistic based food ordering system has proven results of higher EBITDA as compared other type of business models. This has been even beneficial to restaurants which do not have their own established delivery system. Full service food ordering system is a flourishing business model type, which is beneficial for small scale and independent restaurants that have their own kitchen and logistics. Over the forecast period full service food ordering system is expected to grow at a CAGR of 6.9%.

Market Trends, Drivers and Challenges

As the development never stops and so the rapid changing food industry, it is steering the growth of China online food delivery market. From the evolution of delivering food through phone call orders, it has developed to dependence upon food apps and in the near future trend of drones are expected to take over the logistic segment for faster food delivery.

The advancement of technology has widened the scope of food delivery services with the support of software solutions. The rising millennial population, increasing penetration of internet and smartphones and the increased space for restaurants and food outlets to grow their customer base through online portals is driving the expansion of China online food delivery market.

However, the food delivery system face hurdles with the commission and other charges. The minimum charges per order received by the service provider are less than the actual cost incurred. There is a scenario of cash burn, such as if the cost incurred is USD 7 per order and the commission amounts to USD 5 per order, there is a loss of revenue and the flaw in the system needs to be corrected as per the scenario.

Covered in this China Online Food Delivery Market Report

The report covers the present ground scenario and the future growth prospects of the  online food delivery market for 2017-2025 along with the China sales of food delivered and China revenue of online food delivery market. We calculated the market size and revenue share on the basis of revenue generated from major players across the globe. We have forecast the market on the basis of food delivery service providers and number of completed orders placed online for deliveries.

Online food delivery market outlook 2017-2025, has been prepared based on an in-depth market analysis from industry experts. The report covers the competitive landscape and current position of major players in the online food delivery market. The report also includes porter’s five force model, SWOT analysis, company profiling, business strategies of market players and their business models. China online food delivery market report also recognizes value chain analysis to understand the cost differentiation to provide competitive advantage to the existing and new entry players.

Key Market Players

China Online food delivery market report comprises of the following companies as the key players in the online food delivery market.

• Meituan Waimai
• Ele.me
• ENJOY
• Home-Cook
• Daojia
• Grab
• Food Panda
• Just Eat
• Grub Hub

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.

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Taregt Audience for this report

• Online food delivery Service Providers
• Restaurants and Food outlets
• Fast food chains
• Market players of food and beverages industry

Key questions answered in this market study

• What is the total market size by 2025 and what would be the expected growth rate?
• What is the revenue of online food delivery market in 2016-17 and what would be the expected demand over the forecasted period?
• What are the key market trends?
• What are the factors which are driving this market?
• What are the major barriers to market growth?
• Who all are the key vendors in this market space?
• What are the market opportunities for the existing and entry level players?
• What are the recent developments and business strategy of the key players?

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