Alibaba founder Jack Ma has recently ventured into the food industry by becoming the owner of "Ma's Kitchen," a newly formed startup based in Hangzhou, China. The company, officially known as Hangzhou Ma's Kitchen Food, focuses on the sale of pre-packaged food, imports and exports, and the distribution of edible agricultural products, according to the Chinese National Enterprise Credit Information Publicity System.
Ma's Kitchen has a registered capital of 10 million yuan ($1.4 million), with 99.9% ownership held by Hangzhou Dajingtou No. 22 Arts and Culture, an entity controlled by Jack Ma. While the specific details of the business model and the type of food it will sell have not been disclosed, the surge in demand for ready-made meals and pre-packaged food in China has sparked speculation that Ma is tapping into this lucrative market.
Euromonitor International data reveals that the Chinese market for ready meals was valued at approximately 71.1 billion yuan ($9.9 billion) in 2022, representing a 28% increase from 2018. Similarly, the market for meal kits, which require simple assembly or cooking, nearly tripled from 10.6 billion yuan ($1.5 billion) in 2018 to 29.1 billion yuan ($4 billion) in 2022.
Ben Cavender, the managing director of China Market Research Group, suggests that Ma's entry into the food business provides ample opportunities for innovation. With consumers opting for convenient food options due to time constraints and economic factors, packaged meals have gained popularity. Additionally, there is a demand for a wider variety of high-quality and reasonably priced fresh foods, which aligns with Ma's e-commerce background.
Jack Ma, who founded Alibaba in 1999 and stepped down as chairman in 2019, has maintained a relatively low profile while remaining an Alibaba shareholder. His foray into the food industry with Ma's Kitchen showcases his continued entrepreneurial spirit and strategic investments in emerging markets.