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Global food e-commerce: 5 trends expected to grow through 2023
E-commerce sales are forecast to reach $321 billion in 2023—with the Asia/Pacific market leading the increase—according to a new report from Packaged Facts.
May 13, 2019
2 Min Read
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Global food e-commerce sales are forecast to nearly triple through 2023, rising to $321 billion and accounting for nearly 5% of total e-commerce revenues, according to Global Food E-Commerce, a new report from market research firm Packaged Facts.
The Asia/Pacific region is expected to account for the majority of absolute growth, primarily due to the rapidly expanding Chinese market. China dominates regional e-grocery activity in part because of the country’s large urban population and rapidly expanding middle class. In addition, much of China’s very large population has access to high-tech devices and the ability to shop online, due to the country’s position at the forefront of technological development and electronics, Packaged Facts found.
In 2018, more than 75% of food e-commerce revenues were concentrated in the top five markets: China, the United States, Japan, the United Kingdom and South Korea. In each of these countries, e-grocery spending is highest in large urban centers, where many retailers have focused their marketing efforts for home delivery or click-and-collect services.
Through 2023, demand growth in these countries will be driven by these five key factors identified by Packaged Facts:
Increasing comfort among existing online shoppers in making routine grocery purchases online.
Growing use of subscriptions and memberships with online retailers, which can promote retailer loyalty and increase online sales.
Greater penetration of broadband internet in rural and remote areas that previously only had access to dial-up.
Greater acceptance of and investment in home delivery, click-and-collect, and drive order fulfillment formats in an increasingly omnichannel retail environment.
Improvements to data security that ease consumer fears about having their personal information stolen while shopping online.
The report covers the scope, size and growth of the global food e-commerce (i.e., online grocery or e-grocery) market including key trends in major regions and national markets. Historical data are provided for 2013 and 2018 with forecasts for 2023 and 2028.
Food e-commerce sales are broken out for North America (United States and Canada); Western and Eastern Europe (United Kingdom, Germany and France); Asia/Pacific (China, Japan, South Korea and India); Latin America; and Africa/Mideast.
Source: Packaged Facts
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