E-commerce is the quickest-growing sales channel for the FMCG industry globally, according to data from market research companies Kantar, GfK and Intage.
Online FMCG sales increased by 15.8% year on year in 2021, more than three times faster than the next best performer (Cash & Carry).
This growth has come from two key drivers – more shoppers and more frequent purchases. Worldwide FMCG e-commerce penetration has grown from 31.6% in 2019 to 39.8% in 2021. Over the same period, online purchase frequency has risen from 6.9 per year to 10.4.
This strong and continued growth means e-commerce has grown its share of the global in-home FMCG market from 4.8% in 2019 to 7.2% in 2021. Further growth to 9.2% is expected by 2025.
However, there is significant variation across markets. E-commerce’s share is largest in Asia, at 15.3% in 2021, followed by Western Europe (6.9%) and the US (4.8%). Next are Eastern Europe (3.2%) and Latin America (0.9%).
Analysis in WARC’s latest Digital Commerce Index Amazon report shows remaining in stock is a particular challenge for FMCG brands, with food and non-alcoholic drinks having the lowest level of performance.
As the consequence of going out of stock on Amazon lasts long after the product has returned, many brands will use Lightning Deals and other AMS offerings to get back to previous levels of traffic.
