Food E-commerce Market Size Worth $498 Million by 2026 | Compound Annual Growth Rate of 20.3% ; Infinium Global Research
PUNE, India, May 26, 2020 /PRNewswire/ -- Consumer behavior in the food industry is transforming owing to rising e-commerce and technological trends. The food and beverage industry is gradually moving towards e-commerce, that's certain, but its full potential is yet to be exploited. Infinium global research has recently published a global report on "Food E-commerce Market" ( By Platform - On-Premise and SaaS; By Application - Commercial and Personal): Global Industry Analysis, Trends, Size, Share and Forecasts to 2026" published by Infinium Global Research", the reported study estimated the market for food e-commerce to be USD 138 million in 2019 and is projected to reach up to USD 498 million in 2026, with a Compound Annual Growth Rate of 20.3%, over the forecast period (2020-2026).
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Growing Use of Subscriptions and Memberships with Online Retailers is Set to Drive the Food E-Commerce Industry
The growing use of subscriptions and memberships with online retailers is driving the growth of the global food e-commerce market. Nowadays, consumers have given up the hassles of buying daily groceries, and food services. The subscription-based e-commerce model allows the streaming service to meet specific user demands and cater to a wide-ranging audience. The Millennials and urbanites with the highest spending power are looking for convenient, personalized, time-saving, cost-efficient ways to consume, and consume more. The majorities of these consumers prefer to buy their food via the web, as it allows them to save time, indulge in a wide variety of food products and eat more healthily. The use of subscriptions and memberships with online retailers offers huge potential for companies to capitalize on people's desire to save time and consume more.
Key Manufacturers Adopting Expansion and Acquisition Strategies to Strengthen their Position in the Market
The market players present in the food e-commerce sector are focusing on expansion and acquisition strategies as well as retailers have focused their marketing efforts for home delivery or click-and-collect services. For instance, in August 2019, Marks and Spencer Group Plc (M&S) acquired 50% shares of Ocado Retail Ltd, one of the world's largest dedicated online grocery retailers. This joint venture is offering Marks & Spencer an online grocery delivery service for the first time, while Ocado shoppers are able to shop over 6,500 Marks & Spencer food products via Ocado's website. Moreover, in January 2020, Takeaway has merged with Just Eat in an all-share deal that gives Takeaway a greater presence in Canada, the United Kingdom, France, and the isle of Corsica. In total, Takeaway is going to add 104,256 restaurants that partner with Just Eat, which will increase the company's overall distribution footprint by 495%. This new development in the delivery wars had risen after a $10 billion deal merger between two of the largest delivery platforms outside of the United States.
The above figure shows the profession of respondents in the survey conducted for the consumers of food e-commerce. Office workers and business owners are the major consumers of the food e-commerce followed by housewives. The online food ordering and delivery business fill the void between busy professionals and nearby restaurants which offer professionally cooked meals. Furthermore, with the emogration of young professionals into major cities online food delivery sector has started emerging day by day. However, workers and students are the least consumer group of food e-commerce. People having other professions than the ones mentioned above also hold a significant share of food e-commerce.
According to responses collected from consumers across the globe, we conclude that female customers consume more food e-commerce than males. The majority of consumers are from urban areas and having an age group between 20 to 40. Consumers prefer website platform to buy products and convenience as well as certified food hygiene facilities are the most influencing factors for consumers while purchasing food. Moreover, the date of packing and expiry date are the most concerning information on the label of food for the consumers. According to consumers, expensive delivery charges are hampering the demand for the food e-commerce market.
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On-Premise to Remain the Major Revenue-Generating Segment Over the Forecast Years
The report on the global food e-commerce market covers segments such as platform and application. Based on the platform, the market is sub-segmented into On-Premise and SaaS (Software as a service). On-Premise dominated the food e-commerce market as it is a traditional way of deploying any software and normally it was considered the only way to roll out an enterprise business. However, SaaS is the fastest-growing segment of the global food e-commerce market. The markets have opened up beyond geographical boundaries and with the SaaS e-commerce platform it has become super easy to start a business within days. Further, based on the application, the market is sub-segmented into commercial and personal. Among them, the personal segment holds a large market share of the food e-commerce market.
The Asia Pacific Region is the Most Lucrative Region for the Food E-commerce
Among the regions, Asia Pacific accounted for the largest share of the food e-commerce market in 2019. The largest revenue generated in this region is attributed to factors such as societal changes and the rise of a time-pressed middle class, transformative technology, enhanced e-commerce infrastructure, improving logistics enabling faster and more efficient purchases, and deliveries. Time-pressed shoppers seek different product assortments and more convenience. In addition, increased internet and mobile penetration, as well as adoption of digital payment solutions, is fueling the demand for food e-commerce in the Asia-Pacific region.
North America food e-commerce market is currently being driven by several factors such as a significant urban population, their busy lifestyles, and lack of domestic in countries such as the U.S. and Canada. Various online food delivery service providers are experimenting with innovative food delivery methods, via self-driving cars, drones, and robots, thereby, positively influencing the market growth in North America.
The Report Provides:
- Comprehensive analysis of the factors promoting the growth in the food e-commerce market
- Survey results for
- Consumer preferences
- buying patterns
- spending habits
- purchase decision making
- preferred distribution channels
- Choice of alternatives in case of unavailability of the product
- consumer feedback
- Social listening.
- Competitive landscape in the leading country markets in the world
- Worldwide competitive landscape and market trends in the food e-commerce market
- Analysis of the worldwide market using analytical tools such as porter five forces, market drivers and opportunity analysis, product position matrix.
Browse in-depth TOC on "Food E-commerce Market"
Research Methodology and Data Collection Methods for the Report
Infinium Global Research published reports are based on extensive primary and secondary research methods. The research begins with extensive exploration through secondary sources followed by primary research. With these research methods we are able to estimate the market size of the food e-commerce market, to identify the factors that promote the growth in this market as well as the factors that hamper the growth in the market.
The secondary research primarily involves extensive exploring through the secondary sources of information available in both public domain and paid sources. At Infinium Global Research, each research study is based on over 500 hours of secondary research accompanied by primary research. The information obtained through the secondary sources is validated through the crosscheck on various data sources. While the primary research involve extensive interviews and analysis of the opinions provided by the primary respondents. The primary research starts with identifying and approaching the primary respondents. The primary respondents generally include key opinion leaders associated with Infinium Global Research, internal and external subject matter experts, and professionals and participants from LinkedIn, Hoovers, Factiva and bloggers.
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