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: nearly 15% growth in 2021 after growth of about 50% in 2020.
    • 40% of consumers are now shopping online.
    • “Hangover” for wine and champagne category in 2021 (-4%
    • Inflation-adjusting strategies for purchasing food
  • Kantar expects FMCG market growth to slow to 1.3% in 2022, while the food/consumer market will grow by 2.1% in 2022/2021, after an explosion in 2020.

Online sales of food and consumer products grew more than 15% in 2021, in a global food market that grew 2.1%. The overall growth of 2.1% is in line with the average recorded before the COVID-19 crisis, with the market maintaining the double-digit growth rate recorded in 2020 during the pandemic. Kantar, the world’s leading data, research, and consulting firm, has released Winning Omnichannel, the annual study of global food and consumer product sales. Al-Kontar presents the main conclusions:

  • Once again, e-commerce was the fastest growing distribution channel (15.8%)based on a rate of 45.9% recorded in 2020. E-commerce.
  • At 2.1%, annual global food growth is again in line with the 2% average recorded in the five years prior to the pandemic.This is partly due to the fact that out-of-home remittance spending from 2020 has been maintained in 2021.
  • Food sales on all channels in Western Europe decreased by 0.2%, Purchasing habits began to normalize with the gradual reduction of confinement periods during the year. Latin America posted 9.2% growth in 2021, primarily driven by inflation and ongoing lockdowns, while the US food market grew by 2.7%.

According to Stefan Roger, director of global shopping and retail at the Worldpanel division in Kantar, “In many ways, 2021 has been a year to get back to normal. We expected 2% growth at the beginning of the year, which we saw largely. A little over 2% may seem insignificant compared to double-digit growth in 2020, the market has held up to last year’s level as many traditional outdoor opportunities remained on hold, spurring consumption at home.”

  • Supermarkets / supermarkets going on To control the sales of consumer goods productsBut with only 0.1% growth, their share of sales decreased to 51.4% from 52.4% in 2020 and 53.1% in 2019.
  • Food products purchased during promotion accounted for 21.6% of sales in 2021an increase of +0.7 points compared to 20.9% recorded in 2020, but without returning to the pre-pandemic level of 22.1% for 2019.
  • Beverage was the most dynamic sectorWith a growth of 2.9%, driven by sports drinks, energy drinks, and soft drinks.
  • Food purchases (excluding dairy products) increased 2.5%Dairy products grew by 2%.
  • Cleaning product sales show a 1.1% drop.While the health and beauty sector grew by only 0.7%.

For 2022, Kantar expects growth in the global consumer goods market to slow to 1.3% as the rising cost of living continues to make the average basket more expensive: in France, Kantar expects the average basket to cost around 230 euros 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 being driven by the Asian market, which now accounts for 45% of all online consumer goods sales, nearly double the contribution of the United States or Western Europe. Overall, e-commerce platforms have retained the new customers they acquired at the start of the pandemic and continue to grow. Nearly 40% (39.8%) of consumers used online merchant sites to shop in 2021, compared to 37% in 2020 and 31.6% in 2019. They also shop frequently online. 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 shop for food online, compared to 41.7% in 2020, an average of It 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 huge winner, growing three times faster than the second best performing channel. This is due to more consumers shopping online, as well as by an increased buying frequency. Asia is far ahead of all other regions of the Where innovation and the use of e-commerce to buy consumer products.Major Western markets have a lot to learn if they want to continue their growth in the e-commerce market.”

Stefan Roger, global shopper and retail manager for the Worldpanel division of Kantar

Varying gaps between the five major consumer goods sectors

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

  • The strong growth of sports drinksEnergy drinks and carbonated soft drinks enabled the beverage market to grow by 2.9%.
  • The wine and champagne category fell from 11% growth in 2020 to -4% in 2021.
  • Food purchases (excluding dairy products) increased by 2.5%, Flour, canned fish and rice were among the three worst performing categories as shoppers underestimated their cravings for bread and their need for non-perishable staples like canned foods and rice.
  • The home care sector was affected by major categories such as bleaches and household cleaners, both of which recorded a slight decrease in 2021 from around 20% growth recorded. in the year 2020.
  • Facial care products grew from -4% in 2020 to +4% growth in 2021. Even the hardest hit categories in 2020, cosmetics and perfumes (which saw declines of -22% and -11%, respectively) saw a significant improvement in their performance in 2021.

“We can already see that 2022 is a difficult year on many levels. We expect growth in the global consumer goods market to slow to around 1.3% as consumers resort to various adaptation strategies to deal with the rising cost of living. To meet the challenges facing this year, it will be necessary Retailers have to innovate in the areas of e-commerce, promotions and product diversity if they are to overcome the difficulties facing this year.”

Stefan Roger, global shopper and retail manager for the Worldpanel division of Kantar

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