China's takeout status

1, takeout industry market size is growing rapidly

From the beginning of the development of the takeout industry, the online takeout industry has shown rapid growth, from 2011 to 2019, the market size of the online takeout industry increased from 21.68 billion yuan to 577.93 billion yuan, with an eight-year compound growth rate of 50.74%, accounting for the proportion of the overall food and beverage industry from 1.1% to 12.4%.

The 2020 epidemic led to the forced closure of offline catering stores, and the online takeout industry instead further developed rapidly, with the market size growing to 664.62 billion yuan, a year-on-year growth of 15%, and its share of the overall food and beverage industry rising to 16.8%.

2, the number of takeaway users continues to improve

From the point of view of the number of takeaway users and the usage rate, the number of takeaway users in China in 2016-2020 continued to improve, growing from 209 million to 418 million, with a four-year compound growth rate of 18.99%. The takeout usage rate, on the other hand, grew from 28.5% in 2016 to 49% in 2018, with the usage rate declining to 42.3% in 2020 due to the increase in the base of the overall takeout consumer base.

3, the U.S. group hungry market share of more than 90%

From the perspective of the market pattern of takeaway platforms, the market concentration of online takeaway is high, and the mainstream takeaway platforms, U.S. group takeaway, hungry, hungry, hungry starred selection of the three platforms accounted for 92% of the market, of which, the U.S. group takeaway has the largest market share, accounting for 67.3%.

Jitterbug's Advantage in Takeaway

1, Target User Advantage

China's takeaway market, after decades of development, has formed a more mature market with a more stable competitive pattern. At present, the penetration of takeout in first- and second-tier cities is gradually saturated, and the growth rate is gradually slowing down, and low-tier cities have become the new breakthrough point of the takeout industry. As of March 2020, the proportion of takeaway users in tier 3 and lower markets grew to 39.8% of internet users in the region, an increase of about 4.5 percentage points from the end of 2019.

According to the data released by Jitterbug, the number of its users in third-tier and lower cities accounted for 61%, which overlapped with the potential user portrait of the takeaway industry.

2. Traffic Advantage

In 2019-2020, Jitterbug's number of daily active users achieved a high growth rate of 172%, and as of 2020 December 2020, the number of daily active users of ShakeEn reached 680 million, a year-on-year growth of 70%, making it the largest and most active short video platform with the largest number of daily active users in the Chinese market. The high activity of Jitterbug users has laid a good foundation for its expansion of takeaway business, which can effectively reduce the cost of customer acquisition on the user side, and attract more merchants to the business through efficient marketing on the merchant side.

From the industry level, the market size and number of users in the takeaway industry are on the rise, and Jitterbug, with its huge number of sinking users and effective marketing methods, has made a wise decision to enter the takeaway industry. We believe that in the future, the market pattern of the two dominant players in the takeaway industry, namely Meituan and HungryMao, is expected to change.

The above data comes from China's Online Takeout Business Model and Investment Strategy Planning Analysis Report by Prospect Industry Research Institute.