The market for Food & Personal Care is a mostly untapped online shopping retail segment, that has potential to increase its attractiveness significantly in the next years.
eCommerce of Food & Personal Care is beneficial to all customers, primarily in terms of time savings and convenience.
Many of the products that are covered in this segment are usually bought on a regular basis, e.g. razor blades, toiletries, or eggs and orange juice. Therefore, online shopping in this category provides an even greater opportunity to save time and stress, compared to shopping products from other market segments.
24/7 opening hours and home delivery of heavy products and bulky beverage crates is becoming increasingly attractive to busy professionals or parents who want to avoid crowded retail stores.
Therefore the Food & Personal Care segment has a high potential to increase in the next years.
The Food & Personal Care segment is the smallest eCommerce category with global revenues of US$139.8 billion in 2017. Food & Beverages account for one third of this revenue, while personal care products and pharmaceuticals make up the majority of revenues.
The three dominating regional markets, United States, China and Europe together represent 84% of the world market. The regional revenue distribution in 2017 is lead by the United States with revenues of US$46.3 billion, corresponding to a global market share of 33%, followed by China with US$43.4 billion (31%) and Europe with US$27.7 billion (20%).
Source: Statista Digital Market Outlook 2017
The online Food & Personal Care segment is seen as one of the most attractive growth areas in the eCommerce space. With a CAGR1 of 13.3% globally, it is, in fact, the fastest-growing category through 2022. The overall market volume is expected to almost double from US$139.8 billion in 2017 to US$261.4 billion in 2022.
The market is still in an early stage of development, even though firstmovers started their online businesses several years ago and many huge traditional retailers have followed this example. One barrier to growth is the challenge to provide cost-effective logistics services in order to ensure prompt delivery over a wide area.
We expect the largest growth to take place in China with a CAGR1 of 18% between 2017 and 2022. Europe and the U.S. will see CAGRs ranging between about 10% and 11% for the same period, with more and more traditional supermarket chains developing advanced multichannel concepts including click & collect or similar pre-ordering services.
(CAGR: Compound Annual Growth Rate / average growth rate per year)
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As of November 2017