Online Assortment, Fulfillment Options Will Drive Significant Ecommerce Growth: Report
The $2.8 trillion global edible-grocery sector — comprising both food and beverage — is projected to experience an online compound annual growth rate (CAGR) of 13% through 2024, according to ecommerce insights company Edge by Ascential's "Food & Beverage Sector Report."
Online sales are expected to grow much faster as leading retailers prioritize ecommerce by expanding their online assortments and fulfillment options. Store-based sales, however, will continue to account for the majority of edible-grocery sales in the next five years.
"We're going to see a major shift to online and omnichannel over the next few years with edible grocery," said Violetta Volovich, associate analyst and report author for London-based Edge by Ascential. "The barriers to adoption and growth in this sector are coming down, and retailers are investing heavily in technology, supply chain and partnerships that will make for an easy, seamless customer experience."
The research shows more than 82% of global online grocery sales are projected to come from omnichannel retail formats by 2024. Currently, the biggest players are Amazon and Walmart. Amazon will grow its food ecommerce sales from $8 billion to $15 billion by 2024, while Walmart will grow from $6 billion to $14 billion.
Currently 3% of edible-grocery sales are are online, while the cross-category average within global retail is about 20%, with some ecommerce-driven categories, such as electronics, approaching 50% in total online sales.
The complete "Food & Beverage Sector Report" can be obtained from Edge by Ascential.