DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Global E-commerce Grocery Market Sees 30% Annual Growth

By Branislav Pekic
Share this article
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%).

European Growth

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.

ADVERTISEMENT

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.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.