What Factors Propelled The Growth Of The Food And Beverages E-Commerce Market In The Past?
The food and beverages e-commerce market has seen considerable growth due to a variety of factors.
• In recent times, there has been a rapid increase in the food and beverages e-commerce market. It is forecasted to expand from a mammoth size of $644.8 billion in 2024 to an even larger size of $752.45 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 16.7%.
Several factors contribute to this growth. Firstly, the noticeable surge in demand for clean-label, organic, and non-gmo products. Furthermore, the increase in alcohol consumption and a surge in pet ownership amongst Gen Z and Gen Y adults. Finally, strong economical advancement within emerging markets, rising demand for processed foods, growing awareness of the benefits of organic products, and the rise in health-conscious consumers has propelled growth within the historic period.
What is the Market Size Forecast for the Food And Beverages E-Commerce Market?
The food and beverages e-commerce market is expected to maintain its strong growth trajectory in upcoming years.
• Over the coming years, the food and beverages e-commerce market size is forecasted to experience substantial growth, swelling to $1481.29 billion in 2029 with a compound annual growth rate (CAGR) of 18.5%.
This predicted growth during the forecast period can be credited to factors such as the expansion of organized retail, a higher need for ready-to-eat products, accelerated economic enhancements, and a ballooning global population. Key trends for this anticipated period involve a shift towards incorporating natural ingredients to cater to health-conscious consumers, a surge in offering functional beverages bestowing hydration and nutritional benefits, a rising focus on micro-distilled/artisan spirits, a heightened interest in using high-pressure pasteurization techniques for nutrient preservation and harmful microbe elimination, increasing emphasis on clean label products due to heightened health food awareness, an increased stance on employing robotics and automation tech for better production efficacy, innovative filter technologies to decrease toxic elements in cigarettes and improve the smoking experience, a push to sell products on e-commerce platforms, and a focus on artisanal food and beverage preparation methods.
What Are the Critical Driver Fuelling the Food And Beverages E-Commerce Market's Growth?
The rise in smartphone users globally has positively impacted food and beverage e-commerce sales. The primary online consumers for the food and beverage sector are smartphone users, and as their numbers increase, so does the potential for online food and beverage shopping. This is indicated by a report from Uswitch Limited, a financial conduct regulatory body from the UK, which stated that by February 2023, the UK had 71.8 million mobile connections, a 3.8% (or approximately 2.6 million) increase from 2022. Predictions made suggest that the UK population will hit 68.3 million by 2025, with about 95% (or roughly 65 million) being smartphone users. Therefore, the surge in smartphone users coupled with increased internet access is fueling the expansion of the food and beverage e-commerce market.
What Are The Major Segments Within The Food And Beverages E-Commerce Market?
The food and beverages e-commerce market covered in this report is segmented –
1) By Type: Grocery Delivery And Pickup, Direct-to-Consumer (DTC) Products, Meal Kits And Fresh Ready-To-Eat Meals, Restaurant Meal Delivery
2) By Delivery Channel: Store Pick-Up, Home Delivery
3) By End Users: Households, Businesses
Subsegments:
1) By Grocery Delivery And Pickup: Online Grocery Delivery Services, Click And Collect Services, Subscription-Based Grocery Delivery, Same-Day Delivery Services
2) By Direct-to-Consumer (DTC) Products: Organic And Specialty Foods, Packaged Snacks And Beverages, Health And Wellness Products, Frozen and Prepared Meals
3) By Meal Kits And Fresh Ready-To-Eat Meals: Meal Kit Delivery Services, Pre-Portioned Ingredient Kits, Fresh Prepared Meals for Delivery, Specialty Diet Meal Kits
4) By Restaurant Meal Delivery: On-Demand Food Delivery Services, Restaurant Partnerships For Delivery, Multi-Restaurant Delivery Platforms, Subscription-Based Restaurant Delivery Services
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Which Trends Are Expected To Transform The Food And Beverages E-Commerce Market?
As technology progresses and the way humans interact with products and services evolves, daily online shopping and internet browsing for Food & Beverage (F&B) items have become the norm, paving the way for the growth of F&B e-commerce. The year 2022 saw 2.14 billion individuals participate in online shopping, representing 27% of the global population. Moreover, detailed information about their purchases is a key factor for 80% of consumers when making purchasing decisions. As a result, these circumstances contribute to the expansion and development of online F&B enterprises.
Who Are the Key Players in the Food And Beverages E-Commerce Market?
Major companies operating in the food and beverages e-commerce market include:
• Walmart Inc
• Amazon.com Inc
• Koninklijke Ahold Delhaize N.V
• Alibaba Group Holding Limited
• Target
• Kroger
• General Mills
• PepsiCo
• Bigbasket
• Swiggy
• Zomato
• Amazon Fresh
• Blink Commerce Private Limited
• Meituan
• Woolworths Group
• ELEME Inc
• Dangdang
• Vipshop
• Amazon China
• Flaschenpost SE
• Shop.rewe.de
• Amazon EU Sarl
• Bofrost.de
• Cooperative U Enseigne
• Auchan Retail France SAS
• ITM Alimentaire International SAS
• Mercadona.es
• Carrefour.es
• Coop Sverige AB
• MatHem i Sverige AB
• Utkonos
• Auchan
• Sima-Land OOO
• Frisco S.A.
• Auchan Polska Sp. z o.o
• emag.ro
• Rohlik.cz Finance as
• Finestore Distribution S.r.l.
• Sobeys Inc
• Loblaws Inc
• Walmart Canada
• Costco Wholesale Corporation
• Chedraui Group
• HelloFresh
• Albertsons Companies
• Dia ArgentinaInc. S.A.
• mercadolibre.com.ar
• Cencosud Retail SA
• Majid Al Futtaim Group
• LULU UAE
• Souq
• Kibsons
• Strauss Coffee B.V.
• Panko Group Ltd.
• Ecart Internet Services Nigeria Limited
• Jumia Nigeria
• Drinks.ng
• Carrefour Egypt
What Is The Most Dominant Region In The Food And Beverages E-Commerce Market?
North America was the largest region in the food and beverage (F&B) e-commerce market in 2024. Asia-Pacific was the second-largest region in the global food and beverage (F&B) e-commerce market share. The regions covered in the food and beverages e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
