Dive Brief:
- A new report from IRI predicts online sales will account for 10% of all consumer packaged goods sales by 2022, according to Food Processing. The food and beverage component of CPGs will increase approximately 5.5% in that same time period.
- Millennials represent 66% of online shopping on a weekly basis and 84% purchase items monthly, and digital will drive 77% of all retail sales this year — a value of more than $2 trillion.
- “More than 76 percent of all customer shopping trips begin online, regardless of whether the purchase transaction occurs in a brick-and-mortar store or online,” the report states. “A strong online presence will support both online and in-store growth efforts.”
Dive Insight:
Although the IRI report doesn’t foresee an especially large online sales increase for food and beverage products, consumers are growing increasingly comfortable with shopping online — a purchasing phenomenon that is greatly shaping the grocery industry.
Some studies have shown much greater expectations for online purchasing in the future, such as the Food Marketing Institute’s joint study with Nielsen that found online shopping will rise to become a $100 billion industry by 2025.
Analysts agree that grocery retailers need to make some fundamental changes to address the shoppers who are moving online. This includes increasing automation to make things more convenient for shoppers, improving personal loyalty and rewards offerings and bringing original ideas into the store — such as in-store chefs, tastings and cooking classes.
Convenience, cheaper prices and access to products not available in stores drive millennials to shop for CPG products online. As long as groceries continue to offer wide selections and stay on top of the latest trends, they should be able to keep some of their consumers fromjumping ship to mega e-tailers.
This article originally appeared on FoodDive.
