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Food And Beverages E-Commerce Global Market Report 2021: COVID-19 Growth And Change To 2030

Food And Beverages E-Commerce Global Market Report 2021: COVID-19 Growth And Change To 2030

  • September 2021
  • 175 pages
  • ID: 6151609
  • Format: PDF
  • The Business Research Company

Summary

Table of Contents

Major players in the food and beverage (F&B) e-commerce market are Amazon Fresh, Peapod, Google Express, Walmart, Pepsi Co, General Mills, Nature Box, Thrive Market, Costco, and Kroger.

The global food & beverages e-commerce market is expected to grow from $25.36 billion in 2020 to $31.25 billion in 2021 at a compound annual growth rate (CAGR) of 23.2%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $66.95 billion in 2025 at a CAGR of 21%.

The food and beverage (F&B) e-commerce market consists of foods and beverages online sales and related services primarily for household consumption.The food and beverages ecommerce market include companies involved in processing raw food materials/beverages, packaging, distributing them and have an online portal or an application for their sales.

This includes fresh, prepared, packaged foods, and alcoholic and non-alcoholic beverages.

The food and beverage (F&B) e-commerce market covered in this report is segmented by type into grocery delivery and pickup, DTC products, meal kits and fresh ready-to-eat meals, restaurant meal delivery. It is also segmented by delivery channel into store pick-up, home delivery; end users into households, businesses.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Supplier and producer’s cost will be the key restraint for the food and beverage e-commerce market.These include the cost incurred for order fulfilment, delivery cost, adjusting business resources to dynamic market demand and last-mile connectivity.

Besides, there are costs of cardboard boxes for packaging, gas, mileage and driver time to factor in.A report from Capgemini in 2019 shows that retailers’ net profit could fall by up to 26% in the next three years, if they don’t radically improve last-mile solutions, despite increased online grocery sales.

Since the majority of products have a very limited shelf life, the supply chain has to have no gaps, be robust and have zero resource wastage, to achieve profitable margins. Therefore, the costs incurred by the supplier side may restrain the growth of the food and beverage market.

In June 2019, Amazon.com, a USA based E-commerce company acquired a 3.58% minority stake in Big Bazaar for an undisclosed amount. This acquisition gives Amazon a stake in one of India’s biggest retail chains, whose stores sell everything from clothes to fresh produce. Big Bazaar, an Indian retail chain of hypermarkets, discount department stores, and grocery stores.

An increase in smartphone users has given a boost to Food and Beverage (F&B) e-commerce sales worldwide.Smartphone users are the primary online shoppers for the F&B industry and with the increasing number of them, there is a potential increase in online shopping for food and beverages.

As per an article published by k-commerce, the world smartphone users reached 3.2 billion in 2019 and are expected to grow by 600 million within the next two years and 200 million of these are expected from India and China alone. General Mills, a US-based grocery store chain, is already seeing 10% of their sales occurring online, and by 2022, online grocery shopping is expected to be a $100 billion business. Hence increase in smartphone users and internet penetration is driving growth in F&B e-commerce.

With an increase in technology and changing human interaction with any product or service, online shopping and web surfing for Food & Beverage (F&B) products or services is diurnal. This is positively affecting the F&B e-commerce, in 2019, it is estimated that there are 1.92 billion digital buyers, and e-commerce sales account for 14.1% of retail purchases worldwide and is expected to rise to 22% in 2023. 80% of consumers prefer detailed information about purchases and considered this crucial to make buying decisions. Hence this trend will boost and increase the scope for online food and beverage businesses.

The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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