retail news in context, analysis with attitude

Internet Retailer reports on a new Kantar Retail study saying that global online sales of groceries "grew by 15% during the past year and account for 4.4% the market ... By 2025, Kantar Worldpanel projects grocery e-commerce will grow to 9% of the market and be worth $150 billion worldwide."

The story goes on to say that "South Korea, where online sales account for 16.6% of the FMCG ( fast-moving consumer goods) market, leads the way in digital penetration of grocery sales." In Japan, online grocery sales represented 7.2 percent, while in the UK they were 6.9 percent, in France they were 5.3 percent, Taiwan 5.2 percent, China 4.2 percent, the Czech Republic 2.1 percent, Spain 1.7 percent and the Netherlands 1.7 percent."

In the United States, Kantar says, online grocery sales represent 1.4 percent of the market.

The story notes that "online food shopping has been relatively slow to catch on in the United States largely because U.S. online shopping expectations have been set by Amazon.com Inc. Amazon has trained U.S. consumers to see online shopping as a way to buy individual items, instead of for buying baskets of goods on a regular basis."
KC's View:
This is one estimate of annual e-grocery sales; there are others that would put the number higher. While I'm not surprised that the US number is a lot lower than in other countries, I don't think it is hard to imagine it growing in the future simply because millennials - who are so used to doing everything online - will become the center of the target. Their priorities will be such that they'll see e-grocery as being a useful tool to help them live their lives they way they want to ... not to totally replace food shopping, but be a valuable part of the equation.