In 2021, the online retail sales value of fresh food in China totaled around **** trillion yuan, increasing from **** trillion yuan in the previous year. The outbreak of the COVID-19 pandemic has accelerated the development of China's fresh food e-commerce.

In the first nine months of 2024, comprehensive e-commerce contributed **** percent of the retail sales of fast-moving consumer goods in China. Online discounters made up only **** percent of the FMCG market but recorded the highest year-over-year growth of ** percent among all distribution channels.

The China Retail Market Report is Segmented by Product Category (Food & Beverages, Personal & Household Care, and More), by Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, and More), by City Tier (Tier 1, Tier 2, Tier 3, Tier 4 & Below), by Store Format Size (Large-Format, Mid-Sized, and More), and by Geography (East China, North China, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2021, around **** percent of the fresh food retail sales were sold through online channels in China, increasing from **** percent in the previous year. By 2026, online sales are projected to take up more than ** percent of the total fresh food sales in China. The outbreak of coronavirus at the beginning of 2020 boosted the development of fresh e-commerce in China.

Small grocers still dominate China's retail market for food and agricultural products. In 2023, approximately **** percent of retail food sales were sold via small local grocers in China. In comparison, supermarkets accounted for around ** percent of the retail food sales.

Digital Channel Grocery Market Outlook

In 2023, the global digital channel grocery market size was valued at approximately USD 100 billion, with a projected compound annual growth rate (CAGR) of 15% through 2032, reaching an estimated USD 320 billion. This remarkable growth is driven by the increasing adoption of e-commerce platforms and the rising preference for online grocery shopping among consumers.

The digital channel grocery market is experiencing significant growth due to several key factors. The widespread use of smartphones and internet penetration has made online shopping more accessible to a larger audience. Consumers are increasingly turning to digital channels for their grocery needs due to the convenience of home delivery and the time-saving aspects it offers. Additionally, the growing urban population and busy lifestyles have further bolstered the demand for online grocery shopping, as it allows consumers to manage their time more efficiently.

Furthermore, the COVID-19 pandemic has accelerated the shift towards online grocery shopping. With lockdowns and social distancing measures in place, consumers were forced to rely on digital channels to purchase their groceries. This shift in consumer behavior has led to a surge in demand for online grocery services, with many consumers continuing to use these platforms even after the pandemic restrictions were lifted. Retailers have also ramped up their digital offerings to cater to this growing demand, further driving the market's growth.

Another significant growth factor is the increased investment in technology and infrastructure by grocery retailers. Companies are continually enhancing their digital platforms to provide a seamless shopping experience for consumers. This includes improvements in user interface design, faster delivery options, and personalized recommendations based on consumer preferences. Moreover, advancements in supply chain management and logistics have enabled retailers to efficiently manage their inventory and deliver products promptly, thereby boosting customer satisfaction and retention.

The Food And Grocery Retail sector is undergoing a transformative shift, with digital channels playing an increasingly pivotal role. As consumers become more accustomed to the convenience of online shopping, traditional grocery retailers are adapting by enhancing their digital presence. This evolution is not just about meeting consumer demand but also about leveraging technology to streamline operations and improve customer engagement. Retailers are utilizing data analytics to better understand consumer preferences and tailor their offerings accordingly. This strategic shift is crucial for staying competitive in a rapidly evolving market landscape.

Regionally, North America and Europe are leading the market, owing to high internet penetration, advanced infrastructure, and a strong preference for online shopping. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The rapid urbanization, increasing disposable incomes, and burgeoning middle-class population in countries like China and India are driving the demand for digital grocery channels. Additionally, the growing number of e-commerce platforms and favorable government policies supporting digital transactions are contributing to the market's expansion in this region.

Product Type Analysis

The digital channel grocery market is segmented by product type into Fresh Produce, Packaged Food, Beverages, Household Products, Personal Care, and Others. Fresh Produce, including fruits, vegetables, and dairy products, has seen a significant rise in demand within digital channels. Consumers are increasingly seeking the convenience of having fresh produce delivered directly to their doorsteps, bolstered by improved packaging technology that ensures the freshness of these items. Retailers are partnering with local farmers and suppliers to offer a variety of fresh produce and meat products, ensuring quality and fostering consumer trust.

Packaged Food is another dominant segment in the digital grocery market. The wide range of products available, from snacks and cereals to ready-to-eat meals, caters to the diverse preferences of consumers. The stability and longer shelf-life of packaged foods make them a preferred choice for online shopping. Brands are also focusing on offering healthier options in their product lines, tapping into the g

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China Retail Market Size 2025-2029

The china retail market size is forecast to increase by USD 1421.1 billion, at a CAGR of 8.8% between 2024 and 2029.

The market is witnessing significant shifts driven by the growing trend towards premiumization and the increasing adoption of online and omni-channel trading. Consumers in China are increasingly seeking high-quality, luxury goods, leading retailers to focus on offering premium products to cater to this demand. This trend is particularly prominent in sectors such as fashion, cosmetics, and food and beverage. However, the market faces a major challenge in the form of rampant counterfeiting, particularly in the premium segment. The prevalence of counterfeit goods poses a significant threat to both consumers and retailers, damaging brand reputations and undermining the authenticity of premium offerings. To navigate this challenge, retailers must invest in robust anti-counterfeiting measures and build strong relationships with consumers based on trust and transparency. Effective brand protection strategies, such as holograms, serial numbers, and authentication apps, can help mitigate the risk of counterfeiting and maintain the integrity of premium product offerings. By addressing this challenge and capitalizing on the opportunities presented by the trend towards premiumization and online trading, retailers in China can effectively grow their businesses and stay competitive in this dynamic market.

What will be the size of the China Retail Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In China's retail market, e-commerce continues to dominate with innovative technologies shaping consumer behavior. Virtual try-on features allow customers to test products digitally, enhancing the shopping experience. Data-driven customer insights enable personalized product recommendations and marketing automation, driving sales growth. Sustainable e-commerce practices, including ethical sourcing and green logistics, are gaining traction. Language localization and cultural sensitivity are essential for international marketing strategies. E-commerce security software and fraud prevention tools ensure safe transactions. Payment processing platforms support international payment gateways for seamless cross-border commerce. E-commerce scaling requires efficient transportation management systems and delivery management platforms. Omnichannel marketing and customer experience optimization are key trends, with voice search optimization and social media commerce expanding reach. Predictive customer modeling and micro-influencer marketing help brands connect with consumers. E-commerce legal compliance, data privacy, and cybersecurity solutions are crucial for business success. Interactive product demos and customer feedback platforms foster engagement and improve product development. E-commerce innovation includes interactive content, video marketing, and social listening tools. Customer journey mapping and global logistics networks streamline operations and enhance customer satisfaction. E-commerce growth strategies incorporate e-commerce analytics tools and live chat support. Warehouse management systems and e-commerce analytics tools optimize inventory management and supply chain efficiency.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductFood and beveragesApparel and footwearHome improvementConsumer electronics and appliancesBeauty and personal careDistribution ChannelOfflineOnlineGeographyAPACChina

By Product Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.

In China's vast retail market, technology plays a pivotal role in enhancing customer experience and driving growth. Personalized recommendations powered by artificial intelligence (AI) are becoming increasingly popular, enabling consumers to receive tailored product suggestions based on their preferences and past purchases. Fraud detection systems ensure secure credit card processing, while social media listening provides valuable insights into consumer behavior and trends. Omnichannel strategies, incorporating social media marketing and mobile commerce (m-commerce), are essential for businesses seeking to reach customers through multiple touchpoints. Smart logistics and delivery options, including drone delivery, ensure efficient order fulfillment and timely delivery. E-commerce regulations mandate strict data security measures, with financial services integration and machine learning algorithms used to prevent fraud and im

According to a survey on retail shopping conducted by Rakuten Insight in June 2021 in China, the majority of both male and female shoppers preferred a mix of online and offline retail shopping before the COVID-19 pandemic. During the survey, respectively ** and ** percent of the male and female respondents reported that they opted for a mix of both retail channels when shopping for non-grocery items such as fashion and electronics.

China Retail Market size was valued at USD 1,940 Billion in 2023 and is projected to reach USD 3,517 Billion by 2031, growing at a CAGR of 8.17% from 2024 to 2031.

China Retail Market: Definition/Overview

Retail refers to the process of selling goods and services directly to consumers for personal use. It encompasses various sales channels, including brick-and-mortar stores, online platforms, direct sales, and mail orders. Retail transactions are characterized by the final consumer being the buyer, distinguishing them from wholesale transactions where goods are sold in bulk to businesses. Retailers act as intermediaries between manufacturers or wholesalers and the end users, providing a range of products that cater to consumer needs. This sector plays a crucial role in the economy by facilitating consumer access to products and contributing to market dynamics through competition and innovation.

Verdict Retail’s, "Retail Sales of Food and Drinks Specialists in China: Market Size, Growth and Forecast to 2020" provides detailed historic and forecast statistics on retail sales from 2010 to 2020 taking place at "Food and Drinks Specialists" for each category at segment level. However, delivered wholesale sales are not included. The segment level analytics are provided for the following product categories: Food and grocery Verdict Retail categorizes "Food and Drinks Specialists" as channel which includes Bakers, Butchers, Delicatessens, Drinks specialists, Fishmongers, Green grocers, and Single Channel stores (e.g. stores selling only cheese, or only olives, or only honey). Tobacconists (tobacco specialists) are also included in this channel. "Retail Sales of Food and Drinks Specialists in China: Market Size, Growth and Forecast to 2020" report is the result of Verdict Retail’s extensive market research covering the retail industry in China. The report acts as an essential tool for companies active across the China’s retail industry and for new players considering entering the market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

According to a survey on retail shopping conducted by Rakuten Insight in June 2021 in China, the majority of shoppers from all age groups preferred a mix of online and offline retail shopping before the COVID-19 pandemic. During the survey, around ** percent of respondents between 25 and 34 years old reported that they opted for a mix of both retail channels when shopping for non-grocery items such as fashion and electronics.

China Food and Grocery retail market to reach US$3.63 trillion by 2018 Convenience stores to continue as the largest channel for Food and Grocery retailing in Asia-Pacific Indian market is still dominated by traditional mom and pop stores, however organized retailing is on a rise Increasing private label offerings by retailers in Japan, is observed as economy growth is stagnates Read More

With a CAGR of around 8.5%, between 2024 and 2032 the worldwide ethnic food market size is expected to rise $96.90 billion from $46.50 billion now.

Food Retail Market Outlook

The global food retail market size was valued at approximately $12.3 trillion in 2023 and is forecasted to reach around $17.9 trillion by 2032, registering a CAGR of 4.2% during the forecast period. The significant growth factor driving this market includes the increasing global population, urbanization, and the rising demand for convenient and healthy food options. The food retail market has been witnessing substantial transformation due to the integration of advanced technologies, such as artificial intelligence and machine learning, to enhance supply chain efficiency and customer experience.

One of the primary growth factors for the food retail market is the rising global population. The United Nations projects that the world population will reach approximately 9.7 billion by 2050, which translates to a higher demand for food products. Urbanization is another key driver, as more people move to urban areas, the need for accessible and diverse food retail options increases. Urban consumers typically favor quick and convenient shopping experiences, further propelling the growth of supermarkets, hypermarkets, and online retail channels.

Technological advancements play a pivotal role in the growth of the food retail market. The adoption of artificial intelligence (AI), machine learning, and big data analytics has revolutionized the way retailers manage inventory, forecast demand, and personalize customer experiences. AI-powered chatbots and virtual assistants enhance customer service, while data analytics provides insights into consumer behavior and preferences. These technologies contribute to improving operational efficiency and reducing costs, which in turn supports market growth.

Another significant growth factor is the increasing consumer preference for healthy and organic food products. Growing awareness about health and wellness, coupled with the rising incidence of lifestyle-related diseases, has led consumers to seek healthier food options. This shift in consumer behavior has created a surge in demand for fresh produce, organic food, and minimally processed products. Retailers are responding by expanding their product offerings and promoting health-focused brands, thereby driving market expansion.

Regionally, the food retail market is witnessing robust growth across various regions. North America and Europe have well-established food retail infrastructures, with a high penetration of supermarkets and hypermarkets. In contrast, the Asia Pacific region is experiencing rapid urbanization and economic growth, leading to a burgeoning middle class with increased purchasing power. This region is expected to witness the highest CAGR during the forecast period, driven by countries like China and India. Latin America and the Middle East & Africa are also emerging markets with significant potential for growth, supported by improving economic conditions and increasing consumer spending on food and beverages.

Product Type Analysis

The food retail market is segmented by product type, encompassing fresh produce, packaged food, beverages, dairy products, bakery and confectionery, meat and seafood, and others. Fresh produce remains a staple category in food retail, driven by the increasing consumer preference for healthy and organic foods. Retailers are investing in farm-to-table supply chains to ensure the availability of fresh fruits and vegetables. Additionally, the trend towards locally sourced produce is gaining traction, with consumers willing to pay a premium for high-quality, fresh, and organic products.

Packaged food is another significant segment within the food retail market. This segment includes a variety of processed and convenience foods that cater to the fast-paced lifestyle of modern consumers. The demand for packaged food is fueled by busy schedules, dual-income households, and the growing popularity of ready-to-eat meals. Innovations in packaging technology, such as resealable and microwaveable packaging, are enhancing the convenience factor, making packaged food an attractive choice for consumers.

The beverages segment encompasses a broad range of products, including soft drinks, juices, bottled water, tea, coffee, and alcoholic beverages. The rise in health consciousness among consumers has led to an increased demand for functional beverages, such as fortified drinks, energy drinks, and plant-based beverages. The growing trend of premiumization, where consumers are willing to spend more on high-quality and innovative beverage options, is also driving growth in this segment. Additio

Global food and grocery retail sales are forecast to reach US$11trillion by 2018, largely driven by the growth of modern retailing formats in developing economies China is set to continue as the largest food and grocery market globally in 2018, with 32% of the global share of food and grocery retailing Convenience stores (including independents) and gas stations are set to remain the largest channel for food and grocery sales; however, online retailers are growing at a faster pace The dominance of local and smaller retailers in the world’s most populous countries of India and China, and other emerging markets, primarily influences the large size of convenience stores in the global food and grocery market. Read More

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Online Grocery Market Size 2025-2029

The online grocery market size is forecast to increase by $ 1535.6 billion, at a CAGR of 18.5% between 2024 and 2029.

The market is experiencing significant growth, fueled by the increasing popularity and adoption of e-commerce platforms. This shift is driven by the convenience and time savings offered by shopping online, particularly among busy consumers. Another key trend in the market is the growing demand for functional food and beverages, as consumers prioritize health and wellness in their daily lives. However, the market also faces several challenges. One major obstacle is the end-user perception of online grocery shopping, which includes concerns over product quality, freshness, and the lack of tactile experience. Additionally, the complexity of managing perishable items and ensuring timely delivery adds to the operational challenges for retailers. To capitalize on market opportunities and navigate these challenges effectively, companies must focus on improving the online shopping experience, ensuring product quality, and implementing efficient logistics solutions. By addressing these issues, retailers can differentiate themselves in the competitive online grocery landscape and meet the evolving needs of health-conscious consumers.

What will be the Size of the Online Grocery Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with innovative technologies and strategies shaping its dynamics. Email marketing automation and dynamic pricing algorithms are becoming standard tools for e-commerce grocery platforms, enabling personalized offers and competitive pricing. Online grocery reviews, a critical source of customer feedback, are analyzed through data analytics dashboards to improve product offerings and customer experience. Fraud detection systems and mobile apps with route optimization software ensure secure and efficient order fulfillment, while subscription box services offer convenience and customization. Digital marketing campaigns, search engine optimization, and social media marketing expand reach and engagement. Customer service chatbots and loyalty program management foster customer relationships, driving repeat purchases and increasing customer lifetime value. Industry growth is expected to reach double digits annually, with e-commerce grocery sales accounting for a significant share. For instance, a leading e-commerce grocery platform reported a 35% increase in sales during the last quarter. Cold chain logistics and real-time inventory tracking are essential components of a successful online grocery business, ensuring product quality and availability. Payment gateway integration and warehouse automation technology streamline transactions and operations, enhancing website conversion rates. Demand forecasting models and inventory management software optimize stock levels and reduce waste, while last-mile delivery optimization and online grocery delivery services provide seamless shopping experiences. Customer feedback analysis and demand forecasting models enable continuous improvement and adaptation to evolving consumer preferences.

How is this Online Grocery Industry segmented?

The online grocery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductFood productsNon-food productsTypeOne time customersSubscribersDelivery ModeHome deliveryClick and collectProduct TypeFresh produceBreakfast and dairySnacks and beveragesStaples and cooking essentialsOthersGeographyNorth AmericaUSCanadaEuropeFranceRussiaUKAPACChinaIndiaIndonesiaJapanSouth AmericaBrazilRest of World (ROW)

By Product Insights

The food products segment is estimated to witness significant growth during the forecast period.The market is experiencing significant growth, with the food products segment contributing substantially to the revenue generated from retail sales. Consumers prefer online channels for shopping food products due to several factors. These include the convenience and ease of access to retailer websites, swift delivery processes, integrated return policies, and a wide range of product options. Personalization engines and mobile apps enable quicker visits and offer customization and ease of use. Quality and originality checking metrics are available on web portals, ensuring consumer trust. Leading global packaged food and beverage producers, such as Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez, are present in the online retail space through their own websites and third-party retailers. This encourages consumers to shop for groceries online. Dyna

North america ethnic food market size is estimated to reach USD 29.7 Billion by 2034, at a CAGR of 9.00% during the projected period. U.S is expected to dominate the Market due to Large Number of Consumers.

The China processed meat industry, valued at $26.99 billion in 2025, exhibits a steady growth trajectory, projected at a 2.5% Compound Annual Growth Rate (CAGR) from 2025 to 2033. This growth is fueled by several key factors. Rising disposable incomes and urbanization are driving increased meat consumption, particularly in processed forms offering convenience and affordability. Changing lifestyles and busier schedules contribute to the preference for ready-to-eat and ready-to-cook options. Furthermore, the expansion of modern retail channels like supermarkets and hypermarkets, coupled with the burgeoning online retail sector, provides wider access and distribution opportunities for processed meat products. However, challenges persist. Growing health consciousness among consumers is leading to increased demand for healthier alternatives, potentially impacting the consumption of highly processed meats. Government regulations regarding food safety and labeling also influence industry practices. The industry is segmented by meat type (poultry, beef, pork, mutton, others), product type (chilled, frozen, canned/preserved), and distribution channel (supermarkets/hypermarkets, convenience stores, online retailing, other channels). Major players like Tyson Foods, WH Group, and Cherkizovo Group are vying for market share through product diversification, brand building, and strategic acquisitions. The competitive landscape is characterized by both domestic and international players. Domestic companies benefit from established distribution networks and familiarity with local consumer preferences. International players leverage their advanced processing technologies and brand recognition to capture market share. Future growth will likely depend on companies' ability to innovate, cater to evolving consumer demands for healthier and more sustainable products, and effectively navigate regulatory changes. Successful strategies will involve developing value-added products, focusing on product quality and safety, and investing in efficient supply chains. The increasing importance of e-commerce presents significant opportunities for expansion and market penetration. However, overcoming consumer concerns about food safety and promoting healthier options will be crucial for long-term success in this dynamic market. Recent developments include: In 2021, Smithfield Foods Inc. acquired Mecom Group, which is a meat processing company for rising its production in terms of ham, soft salami, dry salami and sausages, bacon, smoked items, and meat products as Mecom Group has two large plants which produce 4,000 tonnes of production per month., In 2021, Hormel Foods acquired Kraft Heinz snack Planters to diversify its product portfolio in its core business segment of producing a massive volume of chili and deli meat products.. Notable trends are: Rising Consumption of Pork Meat Snacks.

The report covers China Plant Based Meat Market and is segmented by Product Type (Meat Substitutes, Dairy Alternative Beverages, Non-dairy Ice Cream, Non-dairy Cheese, Non-dairy Yogurt, and Non-dairy Spreads) and by Distribution Channel (Hypermarkets/Supermarkets, Convenience Stores, Online Retail Channels, and Other Distribution Channels).

China Plant-Based Food and Beverages Market was valued at USD 10 Billion in 2024 and is projected to reach USD 40 Billion by 2032, growing at a CAGR of 17.7% from 2025 to 2032.

The China plant-based food and beverages market is experiencing robust growth, driven by several key factors. A significant driver is the rising focus on health and wellness, with consumers increasingly seeking nutritious and functional foods that align with their dietary preferences and provide health benefits. Additionally, growing awareness of environmental issues, such as deforestation and greenhouse gas emissions associated with animal agriculture, is prompting consumers to choose plant-based options perceived as more sustainable. The increasing disposable income of Chinese consumers has also enabled them to explore a wider range of food options, including plant-based alternatives, as they become more willing to spend on premium and healthier products. Moreover, government initiatives aimed at reducing meat consumption to promote environmental sustainability and public health are further propelling the market. The market is characterized by a diverse range of products, including plant-based meat substitutes, dairy alternatives, and plant-based beverages, catering to the evolving preferences of health-conscious and environmentally aware consumers.