The Big Sell | China’s grocery delivery fever is cooling down

If you have been looking at China’s grocery delivery market over the past two years, you’ve had a pretty wild ride. It’s been crazy out there. Before the pandemic, it was a startup fad—but once people across China locked down, tech giants and venture capitalists pumped billions into the field.

The turnover of China’s community group-buy market surged by 120% year on year to reach RMB 75 billion ($12 billion) in 2020, according to data from research agency 100EC. The figure is expected to increase 38% year on year to RMB 104 billion in 2021. Despite the growth, the market is getting tougher for the smaller players.

While sales are rising, the investment fervor surrounding China’s grocery delivery market is quickly cooling down. A new round of consolidation is wiping out all but the largest players. 

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom