Global E-commerce Grocery Market Sees 30% Annual Growth
Grocery sales throughout e-commerce platforms grew by 30% in the 12 months to March 2017, according to a report by Kantar Worldpanel.
The e-commerce channel now accounts for 4.6% of all FMCG sales, compared to growth of only 1.3% for the FMCG market as a whole.
Growth in absolute value in the biggest markets was led by China (52%), South Korea (41%), the UK (8%), France (7%), and Japan and the US (5% each). However, there was also significant value growth in new markets, such as Thailand (+104%), Malaysia (+88%) and Vietnam (+69%).
With a 5.6% value share in 2016, Europe is the second-largest market in the world for e-commerce, following Asia. However, while the UK and French market lead, with 7.5% and 5.6% market share, respectively, Germany (1.7%) and the Netherlands (2.6%) are lagging behind.
In the US, online grocery penetration has increased rapidly, reaching 30% of the total population. Annual spending on food and alcohol through e-commerce should reach $20 billion (€17 billion) this year.
In Latin America, there has been a slight increase in online grocery spend over the past 12 months. However, a perceived lack of trust in payment methods, together with the overwhelming popularity of discount formats, makes the region a difficult one to crack, with Argentina being the exception.
Kantar Worldpanel forecasts that in 2025, online FMCG will be worth $170 billion (€144.5 billion), accounting for a 10% market share. South Korea and China will continue to lead, while the US should see a growth of e-commerce share to 8%, from 1.5% in 2017, thanks to click-and-collect, delivery and subscription models.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.