Global grocery e-commerce hits $48 billion

E-commerce is on the rise in the grocery segement.



Online grocery sales are gaining momentum, reaching $48 billion in 12 months as of June 2016, according the “Future of E-commerce,” a report from Kantar Worldpanel. While the overall consumer packaged goods market remained flat, increasing just 1.6% over the 12-month period, online grocery sales are outpacing the market.



“Grocery e-commerce, although currently small, with only one in four people shopping online, is growing fast,” said Stéphane Roger, global shopper and retail director at Kantar Worldpanel. “We forecast it will grow to 9% of the market, and be worth $150 billion by 2025. With new entrants such as Amazon expanding rapidly, the industry is facing a shake-up.”



While some industry observers still believe that online transactions have the potential to cannibalize in-store sales, they also urge retailers to develop a strong e-commerce presence.



“People are looking for more convenience, which can be met by shopping online, Roger added. “The retailer that goes online first in each market can enjoy a far higher market share.”