FMCG Online Sales Growth
12 July 2017
The FMCG industry continues to thrive internationally, as the new quarterly report from the Kantar Worldpanel E-Commerce Index revealed that online shopping is seriously boosting the figures. Last year, UK shoppers chose to purchase more of their groceries through a few clicks and spent more when they did so.
Overall, global FMCG online sales grew by 26% from the previous year, with e-commerce now accounting for up to 35% of total FMCG growth. The proportion of the population that has purchased FMCG goods online at least once per year is steadily increasing all over the world.
UK consumers bought, on average, £64.19 worth of goods every time they shopped online – four times as much as when they visited conventional bricks and mortar stores. The report also found that 7.3% of UK grocery sales took place online last year, up 0.6% from the previous year. UK shoppers bought FMCG goods online more often more often than any other nationality, at an average of 15.4 times a year.
This put UK shoppers second only to South Korea in terms of the proportion of shopping that they purchase online. This growth is great news for the industry and proves that technology can continue to help the market to grow, even if consumers aren’t actually visiting a shop in person. E-commerce sites will enable consumers to order and receive goods at a time that is more convenient.
Fraser McKevitt, head of retail and consumer insight, Kantar Worldpanel UK is quoted as saying: “Less than one third of UK households currently buy their groceries online, suggesting there is still significant headroom for e-commerce to grow from 2016's 7.3% market share.
“The biggest increases in uptake are seen from slightly older shoppers; a combination of families retaining the habit even as their children grow up, and more mature households now feeling confident to take the digital shopping plunge. The biggest challenge remains resolving the tension between what connected consumers want and how retailers can deliver this profitably.”
The UK is classed as a ‘mature’ market in the Index, while emerging markets such as Latin America will provide further export opportunities once internet connectivity is more widely available.
FMCG is Scotland's largest manufacturing sector, accounting for 18.8% of total manufacturing turnover. Food and drink manufacturing accounts for around 45% of Scotland's full supply chain turnover & the number of people it employs.
The industry is investing heavily in research and development, digital transformation and skills development in order to ensure continued growth. The strong tradition of producing high quality products with a distinctly ‘local’ feel (such as whisky, seafood and tweed) has been well received by international markets, particularly in North America where is there is a significant Scottish diaspora.
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Written By Michelle McLaughlin