Food and Beverages E-Commerce Global Market Report 2024

The food and beverages market size has grown strongly in recent years. It will grow from $6576.96 billion in 2023 to $7000.88 billion in 2024 at a compound annual growth rate (CAGR) of 6.4%. The growth observed in the historical period can be ascribed to robust economic expansion in emerging markets, a rise in internet penetration, and an increase in disposable income.

The food and beverages market size is expected to see strong growth in the next few years. It will grow to $8817.63 billion in 2028 at a compound annual growth rate (CAGR) of 5.9%. The anticipated growth in the forecast period is linked to the upsurge in smartphone users, swift urbanization, and the introduction of new payment modes. Key trends during this period encompass the increasing popularity of subscription products, mobile grocery shopping, technological advancements, partnerships, collaborations, and the adoption of Buy Now, Pay Later (BNPL) options.

The surge in smartphone users globally has significantly contributed to the growth of food and beverage (F&B) e-commerce sales. Smartphone users represent the primary online shoppers in the F&B industry, and the increasing numbers suggest a potential uptick in online purchases of food and beverages. According to DataReportal, the count of smartphone users reached 5.22 billion in 2020, accounting for approximately 66% of the world's population. Notably, General Mills, a US-based grocery store chain, already witnesses 10% of its sales occurring online, and projections indicate that online grocery shopping could become a $100 billion industry by 2022. Thus, the expansion of smartphone users and internet penetration is a driving force behind the growth of the food and beverages e-commerce market.

The increasing consumption of functional and ready-to-eat food products is poised to drive the future growth of the food and beverages e-commerce market. Functional foods, offering health benefits beyond basic nutrition, are gaining popularity, and food and beverage e-commerce platforms play a pivotal role in providing convenient access to these products, encouraging a healthier lifestyle through online shopping. As reported by the Department for Business and Trade, a UK-based government agency, the global market for functional foods was valued at $282.7 billion (£209.6 billion) in 2021, with a projected compound annual growth rate of 9.5% from 2021 to 2028. Therefore, the increasing consumption of functional food products emerges as a significant driver for the food and beverages e-commerce market.

With the advancement of technology and evolving human interaction with products and services, the routine engagement in online shopping and web exploration for Food & Beverage (F&B) items is becoming commonplace. This shift is notably impacting F&B e-commerce positively. In 2022, the count of online shoppers reached 2.14 billion, constituting 27% of the total world population. An overwhelming 80% of consumers express a preference for detailed information regarding their purchases, deeming it crucial in their decision-making process. Consequently, this trend is expected to propel and broaden the opportunities for online businesses in the food and beverage sector.

Key companies in the food and beverages e-commerce market are strategically emphasizing partnerships to drive revenues. Collaborative efforts involve expanding product offerings, reaching new customer segments, and improving supply chain efficiency. For instance, in September 2022, Thirstie Inc., a US-based provider of e-commerce solutions for beverage alcohol brands, entered into a partnership with William Grant & Sons Ltd., a UK-based spirits company. This collaboration aims to advance William Grant's global e-commerce strategy and provide consumers with digital access to its premium spirits portfolio.

In March 2022, Emami Ltd., an Indian manufacturer and seller of personal care products, acquired a 19% stake in TruNative F&B Pvt. Ltd. This acquisition positions Emami to venture into a new business segment. TruNative F&B, based in Mumbai, is a Direct-to-Consumer (D2C) nutrition company.

Major companies operating in the food and beverages e-commerce market report are Walmart Inc., Amazon.com Inc., Koninklijke Ahold Delhaize N.V, Costco Wholesale Corp, Alibaba Group Holding Limited, Target, HelloFresh SE, Kroger, General Mills, PepsiCo, Bigbasket, Swiggy, Zomato, Amazon Fresh, Blink Commerce Private Limited, Meituan, Woolworths Group, ELEME Inc., Dangdang, Vipshop, Amazon China, Flaschenpost SE, Shop.rewe.de, Amazon EU Sarl, Bofrost.de, Cooperative U Enseigne, Auchan Retail France SAS, ITM Alimentaire International SAS, Mercadona.es, Carrefour.es, Coop Sverige AB, MatHem i Sverige AB, Utkonos, Auchan, Sima-Land OOO, Frisco S.A., Auchan Polska Sp. z o.o, emag.ro, Rohlik.cz Finance as, Finestore Distribution S.r.l., Sobeys Inc., Loblaws Inc., Walmart Canada, Costco Wholesale Corporation, Chedraui Group, HelloFresh, Albertsons Companies, Dia ArgentinaInc. S.A., mercadolibre.com.ar, Cencosud Retail SA, Majid Al Futtaim Group, LULU UAE, Souq, Kibsons, Strauss Coffee B.V., Panko Group Ltd., Ecart Internet Services Nigeria Limited, Jumia Nigeria, Drinks.ng, Carrefour Egypt.

North America was the largest region in the food and beverage (F&B) e-commerce market in 2023. Asia-Pacific was the second-largest region in the global food and beverage (F&B) e-commerce market share. The regions covered in the food and beverages e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food and beverages e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The primary categories of Food and Beverage (F&B) e-commerce include grocery delivery and pickup, Direct-to-Consumer (DTC) products, meal kits, fresh ready-to-eat meals, and restaurant meal delivery. Direct to consumer (DTC) Products denote the direct distribution of a product to consumers without intermediaries such as wholesalers or limiting sales to retail outlets. The delivery channels encompass options such as pick-up and home delivery, catering to both households and business end-users.

The food and beverage (F&B) e-commerce market research report is one of a series of new reports that provides food and beverage (F&B) e-commerce market statistics, including food and beverage (F&B) e-commerce industry global market size, regional shares, competitors with a food and beverage (F&B) e-commerce market share, detailed food and beverage (F&B) e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the food and beverage (F&B) e-commerce industry. This food and beverage (F&B) e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The food and beverage (F&B) e-commerce market includes revenues earned by entities by fresh, prepared, and packaged foods and alcoholic and non-alcoholic beverages. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.