WHY E-COMMERCE SHOULDN’T BE YOUR ONLY FOCUS

Author: Jennifer Hunsecker 

Source: nielsen.com 

Today, nearly 30% of Americans buy groceries online. That number is expected to grow to 70% in less than 10 years. But in planning for the future, we can’t ignore the present.

Shoppers today buy according to their current needs: meal planning, health, value and convenience. And more than ever, consumers are turning to fresh foods in more of those moments. This is why viewing fresh foods in the context of the rest of the FMCG universe is essential. In fact, according to Nielsen Total Food View Americans have spent nearly $178 billion on fresh foods this past year.

Of the 3% growth we’ve seen across the market this year, e-commerce channels are responsible for 82% of the total. While all companies will need to develop and implement digital strategies, today’s digital opportunity isn’t the same for everyone.

In looking at the full picture, we see that e-commerce isn’t yet as significant for food and beverage as it is for things like electronics and clothing. In fact, food and beverage sales represent just 13% of the overall dollar volume we’ve seen online in the past year. While there’s never been a more important time to go digital, the trends in food and beverage indicate that there may be some untapped opportunities closer to home for FMCG edibles.

Fresh and perishable foods generated brick-and-mortar sales of more than $177 billion in the latest year. That’s nearly 14 times as high as all food and beverage sales online this year. Across the FMCG brick-and-mortar landscape, fresh categories have driven nearly 49% of all dollar growth this year. Furthermore, many fresh ingredients have been the starting point for category reinvigoration across both packaged food and non-food items. When so many retailers are struggling to get people in store, it’s no surprise that many are placing a heavier emphasis on fresh categories throughout the perimeter. Today, fresh categories are an invaluable source of growth within the four walls of your in-store environment.