China Online Food Delivery Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The China online food delivery market, valued at USD 262.86 Billion in 2024, has seen substantial growth as consumers can conveniently order food from anywhere, saving both time and effort. The market is expected to grow at a compound annual growth rate (CAGR) of 14.50% from 2025 to 2034, potentially reaching USD 1.01 trillion by 2034, driven by the integration of various payment methods such as mobile wallets, cards, and cash on delivery.

China Online Food Delivery Market Growth

The growth of the China online food delivery market is driven by its exceptional convenience, allowing consumers to order food from home or work. It offers access to a variety of cuisines, customisation options, and 24/7 availability. Customers save time by avoiding cooking or dining out, and the option for group orders makes it ideal for families or office meals. As per the Yum China 2023 annual report, KFC is the leading quick-service restaurant (QSR) brand in China, with 10,296 outlets across over 2,000 cities as of December 31, 2023. Its widespread presence contributes to the growing demand for food delivery services.

Food delivery services in China are easily accessible through mobile apps, providing a seamless ordering process. Platforms offer cost-effective solutions, including discounts, deals, and loyalty programmes, which fuel the demand for the China online food delivery market. They also help small businesses expand their customer base, while real-time order tracking and enhanced payment options improve customer convenience and business efficiency.

Key Trends and Recent Developments

The China online food delivery market growth is propelled by rising demand for the greater use of AI and automation, the expansion of cloud kitchens, integration with e-commerce and social media, and a stronger emphasis on sustainability and eco-friendly practices.

January 2025

Shenzhen City in southern China launched a drone-based food delivery service, covering around 30 routes. The service has processed over 300,000 orders and is available in various locations including office buildings, residential areas, and educational institutions, aligning with China's push for technological innovation in manufacturing.

August 2024

Meituan, a Chinese food delivery giant, partnered with Midea to allow users to order appliances, such as refrigerators and dishwashers, for delivery in as little as 30 minutes. By the end of the year, 25,000 Midea stores will be connected to Meituan’s platform, reaching millions of users.

July 2024

Meituan launched its UAV delivery trial in Shanghai’s Huangxing Park. The service allows fast deliveries of food and essentials from Wujiaochang, cutting delivery times to 10 minutes. Initially partnering with brands like Starbucks, Meituan plans to expand this service across other parks in Shanghai.

August 2023

Ele.me launched a "digital night market" in Changsha, partnering with local authorities to promote the city's night economy. The campaign offered users red envelopes worth up to 88 RMB for midnight snacks, with local vendors providing deals on online orders to create a virtual night market experience.

Increased Use of AI and Automation is a Key Trend in the China Online Food Delivery Market

AI and automation are rapidly revolutionising the online food delivery market in China. Food delivery platforms are incorporating AI for tasks such as personalising customer recommendations, predicting demand, and optimising delivery routes. Automated solutions, like robotic delivery systems and drones, are becoming more widespread, improving logistics and reducing human error. In September 2024, a fintech firm supported by Alibaba launched an AI-powered "life assistant" app in Shanghai, which can order food and book taxis, signalling a significant step towards the integration of AI in consumer services as tech giants increase their investment in this field.

Expansion of Cloud Kitchens are Boosting Opportunities in the China Online Food Delivery Market

Cloud kitchens, also known as dark kitchens, are increasingly popular within China’s online food delivery market. These kitchens operate solely to fulfil online orders, without the need for physical storefronts. This model enables restaurants to reduce overhead costs while expanding their reach to a wider customer base. The rise of cloud kitchens is contributing to the growing demand for delivery services. Aire, a new Spanish restaurant set to open in January 2025 in Hong Kong's Lee Gardens, offering a Basque grill menu with Mediterranean seafood and meats, epitomising the growing trend of online-only restaurant models.

Integration with E-commerce and Social Media is Influencing the China Online Food Delivery Market Dynamics and Trends

Online food delivery services in China are increasingly integrating with e-commerce platforms and social media networks to enhance user experiences. These integrations allow customers to place orders seamlessly, share food experiences on social media, and take advantage of promotional offers. By collaborating with popular social platforms such as WeChat and Weibo, food delivery services not only streamline the ordering process but also boost customer engagement and expand their audience. According to International Trade Administration, 2023 data, domestic e-commerce giants like Alibaba’s Taobao, Tmall, JD.com, and Pinduoduo dominate China’s e-commerce landscape, further driving these trends.

Focus on Sustainability and Eco-friendly Practices is Impacting the China Online Food Delivery Market Revenue

Sustainability has become a central focus in China’s online food delivery sector, with many platforms and restaurants adopting eco-friendly practices. There is a growing shift towards reducing plastic waste and using sustainable packaging solutions. This movement is driven by consumer demand for environmentally responsible practices. The Blue Mountain Project by Meituan Waimai, aims to reduce single-use packaging through innovative recycling methods and eco-friendly alternatives. This comprehensive approach addresses packaging waste reduction at its source, promoting sustainability across the entire delivery supply chain and contributing to the green transition within the industry.

China Online Food Delivery Market Trends

The rise in contactless delivery, particularly during health concerns, enhances customer safety, driving the growth of the China online food delivery market. For businesses, these services improve time efficiency by optimising order management, with more efficient logistics ensuring quicker deliveries, boosting customer satisfaction. Restaurants benefit from broader market reach, attracting customers beyond their local areas. Data insights provided by food delivery platforms help restaurants adjust and improve based on consumer preferences. As per Domino's China Annual Reports, by December 31, 2023, the company operated 768 stores across 29 cities in mainland China. This vast network enhances the online food delivery market by broadening Domino's reach, facilitating quicker deliveries, improving customer accessibility, and providing a wide variety of food choices.

For restaurants, online food delivery increases revenue by reaching a wider audience. Consumers enjoy greater variety, allowing them to discover new restaurants and food options, which impacts the China online food delivery industry revenue. Platforms also cater to specific dietary needs, such as vegan and gluten-free options, accommodating diverse preferences. Overall, the consumer experience is enhanced with fast service, convenience, and variety, leading to higher satisfaction.

China Online Food Delivery Industry Segmentation

The report titled “China Online Food Delivery Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Platform

• Website
• Mobile Application

Market Breakup by Delivery Type

• Restaurant-to-Consumer Delivery
• Platform-to-Consumer Delivery

Market Breakup by Payment Method

• Online
• Cash on Delivery

Market Breakup by Region

• Shanghai
• Zhejiang
• Guangdong
• Jiangsu
• Beijing
• Others

China Online Food Delivery Market Share

According to the China online food delivery market analysis, websites dominate by offering convenience for customers to browse menus, place orders, and track deliveries from their desktops or laptops. They provide an intuitive interface with easy navigation of food categories and payment options. Websites also serve as effective marketing tools, attracting and retaining customers through promotions, thereby expanding the market reach in China. In December 2024, Meituan adjusted its delivery algorithms, including the removal of delivery penalties, to improve rider conditions and meet new regulatory standards, enhancing service quality.

Mobile applications increases opportunities in the China online food delivery market by enabling customers to place orders while on the move. These apps provide easy access to menus, promotions, real-time tracking, and convenient payment methods. Push notifications and loyalty programs encourage repeat orders, increasing engagement and sales in China’s competitive market. In June 2024, EHang and Yonghui launched a smart retailing and drone delivery project at Yonghui’s Super Species store in Guangzhou. EHang’s drones completed over 600 successful trial flights, reducing delivery times from 30 to 15 minutes, ensuring efficiency and freshness.

Competitive Landscape

The China online food delivery market key players offer a wide array of services, including food delivery, hotel and travel bookings, ride-hailing, and local services such as movie ticket sales and beauty treatments. These platforms connect millions of consumers with businesses, providing convenience and variety. They feature user-friendly mobile apps and websites that enable customers to easily browse, order, and track deliveries.

Meituan Dianping

Headquartered in Beijing, Meituan Dianping was established in 2010. It is one of China’s leading on-demand service platforms, offering food delivery, hotel bookings, movie tickets, and more. The company revolutionised China’s local services market with its comprehensive range of services, quickly becoming a dominant force in the industry.

Ele.me

Ele.me, founded in 2008 and headquartered in Shanghai, is a prominent Chinese online food delivery service. Acquired by Alibaba Group in 2018, Ele.me connects consumers with local restaurants for food ordering and delivery. It has become a key player in China’s rapidly growing on-demand food delivery market.

DiDi Food

DiDi Food, a subsidiary of DiDi Chuxing, was established in 2020 and is based in Beijing. It provides food delivery services across various Chinese cities, aiming to compete with other food delivery platforms. Known for its integration with DiDi’s ride-hailing services, it has quickly gained traction in the food delivery sector.