The income from food deliveries is estimated to account for 20% of the total catering market in the near future, according to a report by Meituan and the China Hospitality Association. iResearch expects the food delivery market to be worth CNY653.6 billion in 2019, 39% more than the year before. In 2019, the market made up about 14% of the total food catering business, worth CNY4.67 trillion, according to the National Bureau of Statistics (NBS). Light food and bento boxes are the most popular choice for takeaway, making up 23% of total orders, while orders for fruit juices and milk tea saw an annual increase of 83% at Meituan. The report estimated the total of takeaway delivery service users to be around 460 million in China. Eateries in cities like Shanghai, Nanjing and Hangzhou reported around a 20% hike in delivery income in the previous two weeks after a promotion organized by the Association along with delivery platforms. The 10-day promotional activity covered some 4,000 eateries in five cities and is expected to have brought CNY2 billion in sales.

According to a survey of more than 13,000 merchants in February this year, 86.8% said they managed to increase their income through delivery services offered by third-party platforms, with around a third increasing income by less than 20%. Nearly 40% of eateries have one or two dedicated delivery staff but over 52% said they have not employed additional staff to handle deliveries. Meituan added some 1 million new staff in the four months to May 24 as demand for delivery boomed during the coronavirus lockdown periods. More than 82% of consumers in the survey said delivery services had expanded their dining choices. Nearly two-thirds said they preferred certain brands when ordering takeaways.

A separate survey of Meituan food merchants in April suggests 55% would see integrated development of online and offline businesses. Shanghai shoppers’ nighttime spending in June has returned to the same level a year ago and also recorded a 10% increase from May, according to a separate report by Alibaba’s local services unit and the Shanghai Chain Enterprise Association, the Shanghai Daily reports.