China's Takeout Sales to Tip USD86 Billion This Year
Xu Wei
DATE:  Dec 25 2019
/ SOURCE:  yicai
China's Takeout Sales to Tip USD86 Billion This Year China's Takeout Sales to Tip USD86 Billion This Year

(Yicai Global) Dec. 25 -- China's takeout sales could tally CNY603.5 billion (USD86.2 billion) this year, Economic Daily reported today, citing a report from the Meituan Research Institute and China Hospitality Association.

The figure is some 30.8 percent higher than last year, the report added. The nation's takeaway sector racked up sales of CNY120 billion in the first quarter, CNY143 billion in the second and CNY179 billion in the third.

The introduction of non-catering companies has been a major driving force behind the growth, said Wang Hongtao, deputy secretary-general of the China Chain Store & Franchise Association. He also credited digital payments and the availability of online reviews.

A broader range of firms have been using China's meal delivery platforms to get their products to consumers in a quick fashion, with florists, supermarkets and other companies all hopping aboard. More Chinese shoppers are also using the platforms to buy fruit and vegetables on a daily basis or order cakes for special occasions.

Users are ordering items throughout the day now, rather than just during peak lunch and dinner hours, the report added, saying faster deliveries, greater variety and longer store hours are leading to extensive growth in evening orders. Customers on Meituan-Dianping, China's 'app for everything,' placed 35.2 percent of their orders between 6 p.m. and 6 a.m. during the first three quarters.

There is still potential to bring in companies from other business areas, Wang said, adding that China is a vast market and third-tier and below cities and rural regions have plenty of room to grow as the takeout sector becomes smarter and more personalized amid technology advancement.

Only 49 percent of Chinese netizens user takeout services, and only 40 percent of merchants are restaurants, according to figures from the report, which said that the sector is only just kicking off in central and western China and third- and fourth-tier cities.

Editor: James Boynton

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Keywords:   Delivery,Retail