China Fresh Grocery Retailing Market Report 2021
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Report Summary
“Continued income growth and a focus on healthy eating will promote the sustainable development of fresh grocery retailing. Amid increasingly fierce market competition, the penetration rate of emerging channels is constantly increasing. At the same time, traditional channels are innovating to attract traffic. Targeting the needs of segments and exploring opportunities in sub-categories may bring new growth points for retailers.”
– Binyan Yao, Research Analyst
Key issues covered in this report
- How often consumers purchase fresh grocery products
- How much consumers spend on fresh grocery products
- What channels consumers select to buy different categories of fresh grocery products
- What reasons drive consumers to purchase fresh groceries online
- Consumers’ attitude towards fresh grocery retailing
Table of Contents
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Overview
- What you need to know
- Key issues covered in this report
- Products covered in this report
- Products excluded
- What you need to know
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Executive Summary
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- The market
- Figure 1: Retail sales forecast of fresh grocery products, China, 2016-26 (fore)
- Ever-rising disposable income key driver for fresh grocery retailing’s long-term growth
- Rapid urbanisation fuels the further developments of fresh grocery retailing
- Infrastructure and technology developments make it possible to introduce more products from rural areas to the public
- Companies and brands
- Yonghui
- Hema Fresh
- MissFresh
- Diverse business models to reach more consumers
- Digitalisation empowers supply chain management
- Penetration still a way to go
- The consumer
- As a daily necessity, the fresh grocery category has high purchase frequency
- Figure 2: Purchasing frequency of fresh grocery, 2021
- Take advantage of increasing spending on fresh products and higher requirements
- Figure 3: Monthly spending on fresh groceries, 2021
- Traditional offline channels are relatively stable, with increased acceptance of more convenient channels
- Figure 4: Purchasing channels of fresh grocery, 2021
- Offline channels dominate in categories requiring high freshness and omnichannel retailing cheers more opportunities in fresh fruit
- Figure 5: Fresh grocery purchasing behaviours across categories and channels, 2021
- Diverse choices and convenience are the main purchase drivers for fresh groceries online
- Figure 6: Reasons for shopping for fresh groceries online, 2021
- Product quality and safety are the primary considerations in fresh grocery retailing
- Figure 7: Attitudes towards fresh grocery retailing, 2021
- What we think
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Issues and Insights
- Semi-finished fresh grocery market poised for growth
- Figure 8: Hello Fresh’s food services and recipes, 2021
- Opportunity in fresh pet food
- Revamped wet markets are embracing more opportunities to attract younger consumers
- Figure 9: Suzhou Shuangta wet market, 2021
- Semi-finished fresh grocery market poised for growth
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Market Size and Forecast
- Fresh grocery market keeps steady growth
- Figure 10: Market value of fresh grocer products retail sales, China, 2016-21 (est)
- Figure 11: Retail sales forecast of fresh grocery products, China, 2016-26 (fore)
- Fresh grocery market keeps steady growth
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Market Drivers
- Ever-increasing disposable income key driver for long-term growth
- Rapid urbanisation fuels the further development of fresh grocery retailing
- Infrastructure and technology developments make it possible to introduce more products from rural areas to the public
- Ever-increasing disposable income key driver for long-term growth
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Key Player Performance
- Yonghui
- Hema Fresh
- MissFresh
- Dingdong Maicai
- Yonghui
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Competitive Strategies
- Diverse business models to reach more consumers
- Digitalisation empowers supply chain management
- Penetration still a way to go
- Diverse business models to reach more consumers
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Who’s Innovating?
- Hema fresh pet ready meals
- Figure 12: Hema fresh pet foods, 2021
- Annual set of fresh fruit provides consumers with time-saving and customised options
- Figure 13: Dehui fresh fruit sets, 2021
- Wet market wears Prada
- Figure 14: Wuzhong Market dressed in Prada, 2021
- IFCO provides reusable packaging solutions for the fresh food supply chain
- Figure 15: Services and products of IFCO, 2021
- Hema fresh pet ready meals
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Purchasing Frequency
- As a daily necessity, fresh grocery category has high purchase frequency
- Figure 16: Purchase frequency of fresh grocery, 2021
- Young consumers are potential high-frequency buyers of fresh groceries
- Figure 17: Purchase frequency of fresh grocery, by age, 2021
- As a daily necessity, fresh grocery category has high purchase frequency
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Monthly Spending on Fresh Groceries
- Take advantage of increasing spending on fresh products with higher requirements
- Figure 18: Monthly spending on fresh groceries, 2021
- High-frequency buyers often also high spending
- Figure 19: Purchasing fresh groceries on once a day or more frequency, by monthly spending, 2021
- Target pet-owning high-end buyers of fresh products
- Figure 20: Monthly spending on fresh groceries, by living situation, 2021
- High-income consumers and families with kids are willing to pay more for fresh groceries
- Figure 21: Monthly spending on fresh groceries, by family structure, 2021
- Take advantage of increasing spending on fresh products with higher requirements
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Purchasing Channels
- Traditional offline channels are relatively stable and the acceptance of channels that provide more convenience has increased
- Figure 22: Purchasing channels for buying fresh groceries, 2021
- Wet markets luring young consumers
- Figure 23: Bought more fresh groceries from wet markets compared to 3 months ago, by age and city tier, 2021
- Target women aged 25-49 with kids favour community group buying of fresh products
- Figure 24: Bought more fresh products from community group buying channels compared to 3 months ago, by gender and age, by family structure, 2021
- Traditional offline channels are relatively stable and the acceptance of channels that provide more convenience has increased
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Purchased Categories
- Offline channels dominate in categories requiring high freshness while omnichannel cheers more opportunities in fresh fruit
- Figure 25: Fresh grocery purchasing behaviours across categories and channels, 2021
- Consumers aged 18-39 are more receptive to semi-finished products, especially in tier 1 cities
- Figure 26: Shopping channel for semi-finished goods, by age and city tier, 2021
- Purchasing fruit online attracts older females
- Figure 27: Shopping mainly online for fresh fruit, by gender and age, 2021
- Offline channels dominate in categories requiring high freshness while omnichannel cheers more opportunities in fresh fruit
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Reasons for Shopping for Fresh Groceries Online
- Diverse choices and convenience the main purchase drivers when buying fresh groceries online
- Figure 28: Reasons for shopping for fresh groceries online, 2021
- Gen Z rate delivery time, price and convenience of stocking up when buying fresh groceries online
- Figure 29: Top five reasons for shopping for fresh groceries online, Generation Z, compared with other generations, 2021
- Diverse choices and convenience the main purchase drivers when buying fresh groceries online
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Attitudes towards Fresh Grocery Retailing
- Product quality and safety are the primary considerations in fresh grocery retailing
- Figure 30: Attitudes towards fresh grocery retailing, 2021
- Families and older consumers are more keyed into the origin of fresh products
- Figure 31: Agreement with the statement that “Locally produced fresh products are fresher than those from other provinces and cities”, by family structure and age, 2021
- High earners and families with kids are enthusiastic about prepared fresh product
- Figure 32: Agreement with the statement that “It is worth buying prepared fresh products with higher price”, 2021
- Product quality and safety are the primary considerations in fresh grocery retailing
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Appendix – Market Size and Forecast
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- Figure 33: Market size and forecast of fresh grocery products, China, 2016-26 (fore)
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Appendix – Methodology and Abbreviations
- Methodology
- Abbreviation
- Methodology
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