Food And Beverages E-Commerce Global Market Report 2022

Food And Beverages E-Commerce Global Market Report 2022

  • May 2022 •
  • 175 pages •
  • Report ID: 6282517 •
  • Format: PDF
Major players in the food and beverage (F&B) e-commerce market are Amazon Fresh, Peapod, Google Express, Walmart, Pepsi Co, General Mills, Nature Box, Thrive Market, Costco, and Kroger.

The global food & beverages e-commerce market is expected to grow from $46.72 billion in 2021 to $57.09 billion in 2022 at a compound annual growth rate (CAGR) of 22.2%. The market is expected to grow to $109.23 billion in 2026 at a compound annual growth rate (CAGR) of 17.6%.

The food and beverage (F&B) e-commerce market consists of foods and beverages online sales and related services primarily for household consumption.The food and beverages eCommerce market include companies involved in processing raw food materials/beverages, packaging, distributing them, and having an online portal or an application for their sales.

This includes fresh, prepared, packaged foods, and alcoholic and non-alcoholic beverages.

The main types of food and beverage (F&B) e-commerce are grocery delivery and pickup, DTC products, meal kits, fresh ready-to-eat meals, restaurant meal delivery.DTC products refer to the method of distributing a product directly to a consumer rather than using wholesalers as middlemen or limiting sales to retail outlets.

The various delivery channel included are pick-up, home delivery that are used by households, and business end-users.

North America was the largest region in the food and beverage (F&B) e-commerce market in 2021.Asia Pacific was the second-largest region in the food and beverage (F&B) e-commerce market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

An increase in smartphone users has given a boost to Food and Beverage (F&B) e-commerce sales worldwide.Smartphone users are the primary online shoppers for the F&B industry and with the increasing number of them, there is a potential increase in online shopping for food and beverages.

As per an article published by k-commerce, the world smartphone users reached 3.2 billion in 2019 and are expected to grow by 600 million within the next two years and 200 million of these are expected from India and China alone. General Mills, a US-based grocery store chain, is already seeing 10% of its sales occurring online, and by 2022, online grocery shopping is expected to be a $100 billion business. Hence increase in smartphone users and internet penetration is driving growth in F&B e-commerce.

Supplier and producer costs will be the key restraint for the food and beverage e-commerce market.These include the cost incurred for order fulfillment, delivery cost, adjusting business resources to dynamic market demand, and last-mile connectivity.

Besides, there are costs of cardboard boxes for packaging, gas, mileage, and driver time to factor in.A report from Capgemini in 2019 shows that retailers’ net profit could fall by up to 26% in the next three years, if they don’t radically improve last-mile solutions, despite increased online grocery sales.

Since the majority of products have a very limited shelf life, the supply chain has to have no gaps, be robust, and have zero resource wastage, to achieve profitable margins. Therefore, the costs incurred by the supplier side may restrain the growth of the food and beverage market.

With an increase in technology and changing human interaction with any product or service, online shopping and web surfing for Food & Beverage (F&B) products or services is diurnal. This is positively affecting the F&B e-commerce, in 2019, it is estimated that there are 1.92 billion digital buyers, and e-commerce sales account for 14.1% of retail purchases worldwide and are expected to rise to 22% in 2023. 80% of consumers prefer detailed information about purchases and considered this crucial to make buying decisions. Hence this trend will boost and increase the scope for online food and beverage businesses.

In June 2019, Amazon.com, a USA-based E-commerce company acquired a 3.58% minority stake in Big Bazaar for an undisclosed amount. This acquisition gives Amazon a stake in one of India’s biggest retail chains, whose stores sell everything from clothes to fresh produce. Big Bazaar, is an Indian retail chain of hypermarkets, discount department stores, and grocery stores.

The countries covered in the food and beverage (F&B) e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.