Temu Expands Into EU Food Sector

Temu plans to sell European food in Austria; retailers warn of quality risks and unfair competition.
© APA/AFP/NICOLAS TUCAT

The Chinese online marketplace Temu is reportedly preparing to significantly expand its grocery business in Europe, including offering European food products. “Temu’s platform is open to sellers in Austria and other European countries. Most food items on Temu are offered by local vendors,” the company told APA upon request. However, the company did not disclose specific expansion plans for Austria.

According to the German Lebensmittelzeitung, Temu has assembled a new European team that is currently reaching out to manufacturers across Europe to expand the platform’s range with items such as snacks, sweets, beverages, cosmetics, and garden products. The goal is to create a product lineup “from Europe for Europe.”

No in-house warehouses
Temu attracts customers with low prices and a wide variety of products, from clothing and kitchenware to beauty items and electronics. The platform does not operate its own warehouses and instead connects Asian producers directly with consumers around the world. In Europe, the site recorded 103 million monthly visitors recently, including approximately 1.8 million from Austria, according to Temu’s transparency report.

Consumer advocates have raised concerns about product quality and safety. For example, the Upper Austrian Chamber of Labor reported in early July that flip-flops sold on Temu were “heavily contaminated with health-threatening chemicals.” Since mid-2024, European merchants have also been allowed to sell their products on Temu.

In Austria, Temu’s food offering remains limited—mainly nuts and pasta. “We have dedicated teams managing a variety of categories to expand the local offering and improve services for European consumers,” a Temu spokesperson told APA. By partnering with local businesses, Temu aims to “provide a wider selection, faster delivery, and products that better match local tastes.” No details were given about upcoming food product categories in Austria.

Industry group warns of “serious mid-term risks”
Retailers, environmentalists, and consumer advocates have long called for action against platforms like Temu, Shein, and AliExpress. The Austrian Retail Association issued another warning on Wednesday, citing “serious mid-term risks posed by low-cost Asian marketplaces for consumers, the environment, and the European economy.” Grocery retail is critical infrastructure, said managing director Rainer Will, and now “the next wave of ultra-cheap Asian imports is about to hit this highly sensitive sector.” Quality, traceability, and safety “must not be up for negotiation,” he added.

Austrian MEP Sophia Kircher (ÖVP) criticized what she called the “flood of dumping goods” from Asia: “They are displacing local retailers, distorting competition, and too often fail to meet European safety and health standards, posing serious risks.”

Elisabeth Grossmann (SPÖ), also an MEP, echoed the concerns: “Platforms like Temu and Shein are flooding Europe with cheap products that often do not comply with our environmental and safety standards.” She said the 150-euro customs exemption is being exploited and must be eliminated.

Green Party MEP Thomas Waitz emphasized that Austria’s food retail sector is already “highly concentrated.” He warned that Temu and similar companies would increase pressure on local farmers, “who are already backed into a corner,” and that their business model relies on labor exploitation. “This has nothing to do with fair competition or a fair food system that ensures high-quality food and fair prices for producers.”