NEWS21 November 2017

Global online grocery market grows 30%

Asia Pacific Europe Latin America Middle East and Africa News North America Retail Technology Trends UK

UK – E-commerce growth for the online grocery market has grown by 30% globally, outpacing that of the overall FMCG market, a new report from Kantar’s Worldpanel has found.

The 'Future of E-Commerce in FMCG' study found that e-commerce now accounts for 4.6% of all FMCG sales, with online channels contributing 36% of FMCG growth globally.

Online FMCG outpaced the overall FMCG market in the 12 months to March 2017, with sales of groceries through e-commerce platforms growing by 30%, compared with an overall market increase of 1.3% across all channels.

The report also predicts that the online FMCG market will be worth $170bn by 2025, representing a 10% share of the overall market.

Growth in the online grocery market is led by China, the US, South Korea, Japan, UK, France. Last year, value increased by 52% in China, 41% in South Korea, 8% in the UK, 7% in France and 5% in Japan and the US.

The report also found that the sector is expanding into new markets, with significant value growth in emerging economies such as Thailand (+104%), Malaysia (+88%) and Vietnam (+69%), where e-commerce is in its infancy.

Stéphane Roger, global shopper and retail director at Kantar Worldpanel, said: “We know that e-commerce is still cannibalising offline purchases. However, there is growing evidence that online formats – in isolation – are no longer the best option for winning share. It´s about how online and offline work together to create a better shopper experience."

The report’s findings are based on tracking the behaviour of 500,000 shoppers across key markets in the Americas, Europe and Asia.