Temu attacks: the online discount giant would also break into the European food market

Temu is also very popular in Hungary: according to estimates, Hungarian customers spent more than 100 billion forints on it in 2023. The offering primarily attracts consumers with penny goods – from electronics to clothes and decorative products, more and more non-perishable foods are now also being made available.

Temu’s strategy is based on fast-growing, long-shelf-life products. Such products include pasteurized or sterilized instant soups, which can contain meat or seafood ingredients, but can still be consumed for months without refrigeration. These products could be popular with busy city dwellers because they are easy to transport, require no preparation and can be prepared in a matter of seconds with a kettle.

The market for ready-to-eat soups is one of the fastest growing segments: the global market was estimated to be worth $1.2 billion in 2023, and with an annual growth rate of 8 percent, it could grow to $2.7 billion by 2034. Temu sees significant growth potential in this segment, building on the Asian instant noodle soups.

However, the platform’s expansion into the food market is also raising concerns. Consumer protection organizations warn that Chinese products do not always meet EU safety standards. According to Bild, dietary supplements in particular can contain unauthorized ingredients, and labeling can often be incomplete – for example, it is not clear exactly what the product contains or what allergens it contains.

Temu’s foray into the online grocery market is also noteworthy because even giants like Amazon have failed to make a breakthrough in this area. The question is whether the Chinese discount giant will be able to circumvent European regulations, or whether its expansion will come at the expense of quality and transparency in exchange for cheap prices.