Online grocery sales grew by 13% in the 12 months ending June 2018, and now account for 6.3% of all fast-moving consumer goods (FMCG) sales worldwide, according to the latest data from Kantar Worldpanel.
China and USA emerged as the top markets for online FMCG sales, and both countries recorded growth of 30% in the category.
The Market Leaders
Asia emerged as the leader in online share of total sales, with South Korea acquiring 19.9% of the online market share in value terms.
It was followed by mainland China (9.5%), Taiwan (8.0%), Japan (7.6%), the UK (7.2%) and France (5.6%).
According to the data, major players like Amazon, Alibaba and JD.com attracted new shoppers, while traditional retailers saw a decline in online customers.
In Asia, online retailers made significant progress in consolidating their market growth over the past year, the study found.
In China, smartphones emerged as the device of choice for online FMCG purchases, with around nine out of 10 shoppers opting to make purchases using the medium.
In contrast, only 29% of British shoppers were found to purchase groceries on smartphones.
Commenting on the findings, Eric Batty, global e-commerce business development director at Kantar Worldpanel, said, “European retailers and brands have a lot to learn – they have a huge opportunity to increase sales among a more dynamic and savvy audience who prefer to shop in this way.
“However, it’s crucial that they take a country-by-country approach to acknowledge the different devices, websites, and apps which shoppers elect to use in different geographical markets.”
Home delivery of online groceries was found to be popular among almost all British and Chinese online shoppers, and the trend showed signs of growth in France and Spain.
Online sales will represent over 10% of global FMCG spend by 2025, with growth opportunities in emerging markets like India, Indonesia, Brazil, Mexico and Africa, the study predicts.
“Only a quarter of the world’s population currently shops for their groceries online, so it will be vital to attracting new shoppers by providing a frictionless, convenient and pleasant shopping experience both online and off,” said Stéphane Roger, global shopper and retail director at Kantar Worldpanel.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.