NEW YORK, July 16, 2015 /PRNewswire/ -- A new era in online shopping is arriving, and it will increasingly impact fresh fruit, vegetables and floriculture supply chains. Just as tomorrow's shopper will buy other groceries online, he or she will also buy fresh produce online. Suppliers that want to take advantage of this development have to adapt to the specific requirements of the e-shelf, according to Rabobank Report Wanted: 'E-daptable' Fresh Produce Suppliers.
While total retail sales are stagnant, online grocery sales in Western Europe are expected to double in the coming five years. Looking further ahead, Rabobank expects that, in 2025, the share of online grocery shopping in total grocery shopping will be as high as 25 percent. The magnitude of this change will be similar to that of the rise of private label in the 1970s and the rapid rise of hard discounters since the turn of the century.
Several developments indicate consumers' increasing willingness to buy fresh produce online. "For a long time, consumers were accustomed to choosing their own fruit and vegetables in the store," says Rabobank analyst Cindy van Rijswick. "Now, consumers are increasingly used to having their vegetables delivered to their doorstep: either via regular supermarkets and meal kit deliveries, or via specialized online fresh produce suppliers."
Fresh produce suppliers (of fruit, vegetables and floriculture) that respond proactively to this development could cash in. The various online channels for fresh produce offer several opportunities: increased shelf space, the option of adding information about the product, active screen management, cross-sell opportunities and fresher products via a shorter supply chain. At the same time, suppliers may face challenges from increased competition and complexity, as well as changes to impulse-buying.
For more information please contact the report's author:
- Cindy van Rijswick, Cindy.Rijswick@Rabobank.com, Tel: +31 (0) 30 7123 830
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 40 countries worldwide. Founded over a century ago, Rabobank today is one of the largest banks in the world, with nearly $1 trillion in assets, and ranks among the 10 safest banks globally. In the Americas, Rabobank is a premier bank to the food, agribusiness and beverage industry, providing sector expertise, strategic counsel and tailored financial solutions to clients across the entire food value chain.