The share of e-commerce in the global food market continues to increase (Kantar)

The global food market is growing 2.1% in 2021, maintaining 2020 levels during the pandemic.

  • The share of e-commerce in the food market continues to increase: almost 15% growth in 2021 after a growth of around 50% in 2020.
    • 40% of consumers now shop online.
    • “Hangover” for the Wine and Champagne category in 2021 (-4%
    • Inflation coping strategies for food purchases
  • Kantar expects the FMCG market growth to slow to 1.3% in 2022, while the food/consumer market grew 2.1% in 2022. 2021, after an explosion in 2020.

Online sales of food and consumer products grew by more than 15% in 2021, in a global food market growing by 2.1%. Overall growth of 2.1% is in line with the average recorded before the COVID-19 crisis, with a market that has maintained the double-digit growth rate recorded in 2020 during the pandemic. Kantar, a global leader in data, research and consulting, has launched Winning Omnichannel, its annual study of global sales of food and consumer products. Kantar presents the main conclusions:

  • Once again, e-commerce was the distribution channel that grew the most (15.8%)based on the 45.9% rate recorded in 2020. E-commerce.
  • With a rate of 2.1%, annual global food growth is back in line with the average of 2% recorded in the 5 years before the pandemicin part because spending transferred from home to home from 2020 was maintained in 2021.
  • Food sales across all channels in Western Europe were down 0.2%, shopping habits began to normalize with the gradual reduction of confinement periods throughout the year. Latin America saw 9.2% growth in 2021, mainly driven by inflation and ongoing lockdowns, while the US food market grew by 2.7%.

According to Stéphane Roger, Global Shopper & Retail Director of Kantar’s Worldpanel division, “In many ways, 2021 was a year back to normal. We had forecast growth of 2% at the beginning of the year, and that’s basically what we saw. While growth of just over 2% may seem small compared to 2020’s double-digit growth, the market remained at last year’s level as many traditionally away-from-home opportunities remained on hold, which spurred home consumption. ”.

  • Supermarkets/hypermarkets continue dominate FMCG product salesbut with growth of just 0.1%, its share of sales has dropped to 51.4%, from 52.4% in 2020 and 53.1% in 2019.
  • Food products purchased on sale accounted for 21.6% of sales in 2021an increase of +0.7 pts compared to the 20.9% recorded in 2020, but without returning to the pre-pandemic level of 22.1% in 2019.
  • Beverage was the most dynamic sectorwith growth of 2.9% driven by sports drinks, energy drinks and soft drinks.
  • Food purchases (excluding dairy) increased 2.5%with dairy products registering a growth of 2%.
  • Cleaning product sales fall 1.1%while the health and beauty sector grew by only 0.7%.

For 2022, Kantar expects growth in the global FMCG market to slow to 1.3%, as rising cost of living continues to make the middle basket more expensive: in France, Kantar expects the middle basket to cost around €230 more per year.

An increasing share of e-commerce in the global market

E-commerce now accounts for 7.2% of global food spending. The growth is driven by the Asian market, which now accounts for 45% of total FMCG online sales, nearly double the contribution from the US or Western Europe. Overall, e-commerce platforms retained the new customers gained at the start of the pandemic and continued to grow. Nearly 40% (39.8%) of consumers used online merchant websites to shop in 2021, compared to 37% in 2020 and 31.6% in 2019. They also shop online more often. On average, they shopped online 10.4 times in 2021, compared to 8.7 times in 2020 and 6.9 times in 2019. 44.2% of Asians now buy food online, compared to 41.7% in 2020, a rate that reached 88.8% in mainland China and 87.1% in South Korea. In Western Europe, the rate peaks at 35.2%.

“E-commerce remains a big winner, growing three times faster than the second best performing channel. This is explained both by the increase in the number of consumers who buy online, as well as by the increase in purchase frequency. Asia is far ahead of all other regions in terms of innovation and the use of e-commerce for purchasing consumer products. Major Western markets have a lot to learn if they want to follow their growth in the e-commerce market. »

Stéphane Roger, Global Shopper & Retail Director of Kantar’s Worldpanel division

Disparate Gaps Between the Big Five FMCG Sectors

All five FMCG sectors experienced slower growth. With beverages, dairy and other foods accounting for more than 70% of the FMCG’s value, it’s no surprise that these three sectors have had the biggest impact, collectively dropping from more than 10% to less than 3% growth.

  • The robust growth of sports drinksenergy drinks and soft drinks allowed growth of 2.9% in the beverage market.
  • The Wine and Champagne category dropped from 11% growth in 2020 to -4% in 2021.
  • Food purchases (excluding dairy) increased by 2.5%, flour, canned fish and rice are three of the worst performing categories as shoppers reduced their cravings for cooking and their need for non-perishable staples like canned food and rice.
  • The home care sector was impacted with key categories such as bleach and household cleaners both showing a slight decline in 2021 from the nearly 20% growth recorded in 2020.
  • Facial care products grew from -4% in 2020 to +4% growth in 2021. Even the hardest-hit categories in 2020, makeup and fragrances (which saw a decline of -22% and -11%, respectively) saw their performance improve significantly in 2021.

“We can already see that 2022 is a difficult year on many levels. We anticipate growth in the global FMCG market to slow to around 1.3% as consumers turn to various coping strategies to deal with the rising cost of living. To meet this year’s challenges, it will be essential for retailers to innovate in the areas of e-commerce, promotions and product assortment to overcome this year’s challenges. »,

Stéphane Roger, Global Shopper & Retail Director of Kantar’s Worldpanel division

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