In 2025, e-commerce will represent 10% of all FMCG spend. China and US will lead in volume growth while China and Korea will be fastest growing markets.
Sales of fast-moving consumer goods through e-commerce platforms grew by 30% in the 12 months to March 2017, equivalent to 4.6% of all FMCG sales globally during this period, according to the report “The Future of E-commerce in FMCG” recently published by Kantar Worldpanel.
Whilst the e-commerce channel is growing, the FMCG market as a whole is sluggish, increasing just 1.3% during the same period. E-commerce now contributes to a record 36% of global FMCG growth and will continue to outpace growth in offline FMCG retail. “Our projections show that in 2025, online FMCG will be a US$170 billion business and hold a 10% market share,” says Stéphane Roger, Global Shopper and Retail Director at Kantar Worldpanel.
Whilst the e-commerce channel is growing, the FMCG market as a whole is sluggish, increasing just 1.3% during the same period. E-commerce now contributes to a record 36% of global FMCG growth and will continue to outpace growth in offline FMCG retail. Our projections show that in 2025, online FMCG will be a US$170 billion-dollar business and hold a 10% market share.
In China, e-commerce channel evolved rapidly and in the latest year, approximately 60% of urban families shopped in e-commerce channel. According to Jason Yu, General Manager of Kantar Worldpanel Greater China, e-commerce giants gradually moved offline and started to transform the entire retail infrastructure. This helps to provide consumers with a better shopping experience and enable brands to achieve incremental growth.
In terms of absolute value growth, the top six contributors are all leading power economies, led by China and the United States. The other top performing countries are South Korea, the UK, Japan, and France. Last year, value increased by 52% in China, 41% in South Korea, 8% in the UK, 7% in France and 5% in Japan and in the US.
Kantar Worldpanel projections show that by 2025, online FMCG will be a USD 170 billion-dollar business, and hold a 10% total market share.
South Korea and China will continue to lead the way and Asia in general remains at the cutting edge of online adoption. The big global uplift will come from the USA, predicted to rise from a 1.5% e-commerce share in 2017 to 8% in 2025. This can be attributed to the successful rollout of click and collect, delivery and subscription models, and the acceleration of disruptive models.
This article was originally published on Kantar.com
