Digital technologies are revolutionizing the way the food and consumer goods industry operates and online sales are forecast to grow 163% by 2023 across major markets, according to a new report from research organization IGD, in association with The Consumer Goods Forum.
Looking at how companies can respond to this change and how businesses will utilize digital technology to become more relevant, the report explores three digital retail models of the future and predictions for an increasingly digital food and consumer goods industry.
Major grocery e-commerce markets will continue to expand rapidly, growing at almost four times the rate of any other channel. Data highlights from the research include:
- Asia-Pacific’s online grocery market will grow by 196% by 2023, adding $198bn
- North America’s online grocery market will grow by 152% by 2023, adding $38bn
- Europe’s online grocery market will grow by 66% by 2023, adding $21bn
Asia and North America will lead the way on the rate of growth, with Europe set to develop this channel at a comparatively slower pace. Indeed, grocery e-commerce sales in Asia-Pacific are set to triple over the five years, with IGD forecasting that in 2023, e-commerce’s share of grocery in Asia (7.5%) will be twice that of North America (3.4%), and close to three times larger than Europe’s (2.5%).
|Region||2018 (US $bn)||2023 (US $bn)||Sales added 2018-’23 (US $bn)||Sales growth 2018-‘23||Online share of grocery market 2018||Online share of grocery market 2023|
|All major markets||158||414||257||163%||2.5%||5.2%|