Online FMCG sales are forecast to grow 163 per cent by 2023 across major markets, according to a new report from research organisation IGD, in association with The Consumer Goods Forum.
The report explores three digital retail models of the future and predictions for an increasingly digital food and consumer goods industry. It finds that Asia and North America will lead the way on the rate of growth, with Europe set to develop this channel at a comparatively slower pace.
Major grocery e-commerce markets will continue to expand rapidly, growing at almost four times the rate of any other channel.
Online FMCG sales in Asia-Pacific are set to triple over the five year period, with IGD forecasting that in 2023, e-commerce’s share of grocery in Asia (7.5 per cent) will be twice that of North America (3.4 per cent), and close to three times larger than Europe’s (2.5 per cent).
Asia-Pacific’s online grocery market will grow by 196 per cent by 2023, adding US$198 billion to the industry.
“We are living in exceptional times,” said IGD CEO Susan Barratt, “with an extraordinary burst of retail innovation, driven largely by digital developments. With this research we explore the global proliferation of retail innovation from three different directions: established players, online specialists and the new ecosystems. We believe that plenty of the new emerging models are set to grow and prosper, which means established retailers will need to work hard and swiftly, either to limit their impact or to emulate them.”
“While of course growth remains challenging for all of the established players in the industry, many are nevertheless finding that the ongoing disruption presents exciting opportunities,” said The Consumer Goods Forum MD Peter Freedman.
“This report presents several ideas for consumer goods and retail companies looking to secure their long-term future, and we’ll be discussing some of these themes at the Global Summit in Vancouver: how scale and agility can impact your business model, how digital technologies will permeate decisions and how new forms of collaboration will help drive the sustainable evolution of our industry.”
