China Wet Markets vs Online Retail | Generated by AI
Question: Due to e-commerce and vegetable/fresh food app delivery, has the local fresh food/vegetables market declined in China’s big cities?
Answer:
In China’s major cities, traditional local fresh food and vegetable markets (known as wet markets) have experienced a gradual decline in market share due to the rapid growth of e-commerce platforms and on-demand delivery apps for fresh produce. However, they remain resilient and continue to dominate the overall fresh food retail landscape, often complementing rather than being fully replaced by online channels.
Key Trends
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E-commerce Growth: Fresh food e-commerce has expanded significantly. In 2023, the gross merchandise volume (GMV) reached over 642 billion yuan, with a penetration rate of about 12.5%. User numbers exceeded 513 million, driven by platforms like Hema (Alibaba), Dingdong Maicai, and Meituan, offering 30-minute to one-hour deliveries. This convenience appeals especially to younger, busy urban consumers in tier-1 cities (e.g., Beijing, Shanghai, Shenzhen).
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Impact on Traditional Markets: Wet markets have lost market share, particularly in first-tier cities where modern logistics and e-commerce are advanced. As of 2020 data (latest comprehensive figures available), wet markets still held about 56% of national fresh food retail sales, but this share is lower in big cities due to competition from supermarkets, community chains, and online delivery. Consumers cite perceived superior freshness, lower prices, haggling opportunities, and proximity as reasons for preferring wet markets, while online options win on convenience and variety (including imports and organics).
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No Complete Decline: Studies show wet markets persist strongly, often co-existing with modern channels. Many are upgraded to “smart markets” with digital payments, and they serve demographics like middle-aged/elderly shoppers and lower-income groups. In urban areas, supermarkets and wet markets frequently locate near each other, as consumers buy fresh produce from wet markets and packaged goods elsewhere.
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Big City Specifics: In tier-1 cities, the shift is more pronounced—e-commerce caters heavily to young professionals, accelerating market share erosion for traditional outlets. However, wet markets remain the primary source for many residents due to cultural preferences for daily fresh shopping and sensory evaluation (touching/selecting produce).
Overall, while e-commerce and delivery apps are eroding the dominance of local fresh markets in big cities, causing a partial decline in foot traffic and share, traditional wet markets are adapting and retaining a leading position nationally and significant relevance urbanely.
References:
- Wet markets in China - Wikipedia
- The hidden strength of small business: Social networks and wet market vendors in China - Wiley Online Library
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[China: fresh food e-commerce GMV 2023 Statista](https://www.statista.com/statistics/1026889/china-fresh-food-ecommerce-gross-merchandise-volume/) -
[China: fresh food e-commerce penetration rate 2023 Statista](https://www.statista.com/statistics/1194968/china-online-penetration-rate-of-fresh-ecommerce/) -
[What Chinese consumers want from fresh-food retailers McKinsey](https://www.mckinsey.com/industries/retail/our-insights/what-chinese-consumers-want-from-fresh-food-retailers)