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NEWS8 July 2015

FMCG online sales to reach $130bn by 2025

FMCG News

UK — Online’s share of FMCG purchasing grew by 28% in 2014, and is predicted to double in the next 10 years in advanced e-commerce markets, according to Kantar Worldpanel.

In its report ‘Accelerating the growth of e-commerce: 2015 Edition’ Kantar Worldpanel forecasts that online sales will hit $130 billion by the end of 2025.

FMCG e-commerce grew over the past year at a faster pace in Asia with China being the fastest growing market ( 34%) followed by South Korea ( 22%). In Europe the FMCG ecommerce grew 20% in the UK and 12% in France. South Korea continues to be the country where FMCG online sales are higher reaching 13.2% of the total FMCG market (compared to 10.2% one year ago).

The typical profile is a family with young children, urban-suburban, middle/upper class. An average online shopper in the UK, for example, spends £43 per trip online compared with the £10 spent per trip in a bricks-and-mortar store.

Loyalty is also a factor online; in the UK online shoppers spend 23% of their annual FMCG expenditure in the same retailer.

Stéphane Roger, global shopper and retail director at Kantar Worldpanel, said: “Since last year’s ‘Accelerating the Growth of E-commerce in FMCG’ report, we have seen major changes in the structure of many retailers and brands. Mondelez, Walmart, Pepsico, Coca-Cola, Procter & Gamble and Unilever have each implemented plans to future-proof their business for e-commerce. It seems that for these global leaders, the talk is fast turning in to action.”

The report is based on in-depth analysis of the purchasing habits of 100,000 shoppers in 10 of the biggest online FMCG markets.

@RESEARCH LIVE

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