Temu Plans Entry into the Food Market

The Strategy: Food "from Europe for Europe"

Chinese e-commerce platform Temu, known for extremely low prices and aggressive discount promotions, is planning to expand its product range to include food – specifically, products made in Europe for the European market. Until now, the company focused primarily on clothing, electronics, and household goods. According to the Lebensmittel Zeitung, Temu has now established a dedicated food team that has been reaching out to European suppliers since May. The goal is to expand its regional assortment and improve service for local customers.

Together with its sister platform Shein, Temu generated nearly €100 billion in revenue in 2024 – far exceeding traditional brands such as Zara, which reported €6.1 billion in sales that year. To secure a share of the European food market, Temu is focusing on regional partnerships and has launched what it calls an “aggressive campaign” to recruit suppliers of food, cosmetics, and other fast-moving consumer goods.

European Producers in the Crosshairs

Temu is currently targeting small manufacturers in particular – including producers of sweets and dietary supplements. The company’s approach is not just about increasing market reach but also about building a degree of regionality, likely in response to ongoing trade conflicts such as those between China and the United States. Without duty-free small parcel shipments, Temu’s traditional business model would become far less profitable. So far, the platform has not disclosed any specific terms or conditions for European suppliers.

Concerns over Quality and Labor Standards

Temu’s expansion plans are facing growing criticism from European producers. Marlena Hien, founder of the brand Bears with Benefits, voiced her concerns publicly on LinkedIn, warning that it is “highly dangerous how Asian discount platforms are flooding the European market – often bypassing regulations and ignoring product safety, sustainability, or fair labor standards.” Industry experts fear that Temu’s entry into the food sector could intensify competition and erode existing quality benchmarks.

Temu is not the first major e-commerce player to venture into the grocery business. Amazon, for example, began offering non-perishable foods and fresh products under the Amazon Fresh label in Germany as early as 2015. However, the service was discontinued in October 2024 – a sign that the European grocery market, despite its size, is not easy to conquer.

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