A new type of market is showing up in big cities in China, appealing to a more well-off sector of the population and aiming also at receiving tourism groups.

When you think about fresh food markets, you might think of noisy and crammed places. But the new fresh food markets are more organized and well-decorated. The market features local decorations and takes up all of two well-lit floors, with fresh foods, flowers, cooked dishes, and steamed buns.

Shoppers are filling in the hallways, between 800 and 1,000 customers a day, and the market has registered sales between 40,000 or 50,000 yuan.

Experts said the growing demand for new fresh food markets stems from the change in the typical Chinese home composition.

"About 30 or 40 percent of households now consist of one or two people. So fresh food markets should upgrade from simply selling fresh food to providing convenient food and some high-end experiences. For example, some of them have added cooked food or restaurants. There are already some top markets around the world that have become tourism attractions after being upgraded," said Zhang Qiang, partner of Roland Berger. 

With an eye on the market's growth potential, even some foreign firms are beginning to join in. Japanese household furnishing and personal items retailer Muji has announced plans to open its first-ever vegetable store in the country, in Shanghai.

"Several years ago, there was a peak of investment in the fresh food sector, but it faded away two or three years ago. But COVID-19 has brought new stimulation to the business, and Muji is trying to ride the second wave. The business model is going through an upgrade and getting some experience. But there are no clear leaders in the market, so you see a lot of diversified competition," Zhang said. 

Zhang also added there's nothing to guarantee the retail giant success selling vegetables in China. New players, he noted, will need to strike a balance between commercial values, people's livelihoods, and consumers' diversified demands. 

"China will always buy vegetables, but the newly stylish sellers may need some time to begin making fortunes off the fruit stands," he said.