The $130 Billion Future of FMCG e-Commerce in 2025

The online share of FMCG purchasing in advanced e-Commerce will double in the next ten years, according to a report published today by Kantar Worldpanel.
With 28 percent global growth in 2014 alone, FMCG online sales are rapidly rising, particularly in the world’s most advanced e-Commerce markets, including China, being the fastest growing market (34%), followed by South Korea (22%).
The report confirms that grocery sales via e-Commerce platforms are anticipated to account for nine percent of the global FMCG industry, with online sales predicted to hit $130 billion by the end of 2025.
According to the report, the international e-Commerce grocery market reached $48 billion in FY2016, accounting for 4.4 percent of global FMCG sales. This indicates that e-Commerce is well on the way for taking a greater portion of the overall FMCG market in coming years.
fmcg e-commerce grocery future kantar worldpanel reportWith one quarter of shoppers buying online on a global level, there is incredible headroom for growth. South Korea highlights the potential of FMCG e-Commerce becoming a certainty, with 58.9 percent of households buying FMCG products online at least once a year. One in four households buy FMCG products on the internet in France, Spain and the UK.
Joining the e-Commerce race is a matter of urgency, according to Stéphane Roger, Global Shopper and Retail Director at Kantar Worldpanel.
“Simply put, the market is remarkably unkind to latecomers. Winning among the retailers are those which first invested.” The UK’s Tesco and E.Leclerc in France are great examples of this, both enjoying an online market share double that of their offline counterparts.
Roger says that shopping lists are a key for online FMCG retailers, with data showing that 55 percent of online consumers repeat their shopping lists from one purchase to the next.
online-groceries
“Until retailers work out how to offer these smaller baskets  – and do so profitably – online, we’re unlikely to see growth pick up again.”

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