Food and beverage industry faces many challenges for their product lining including meeting consumer demands and managing supply chains. Ecommerce helps these industries/ organizations to grow into the market according to the market trend change and avails different upcoming opportunities for the betterment of the customer and operating margins. Ecommerce gives real time tracking and information from different sources to one source which plays big role in the industry.
The industry have very slow growth as there are challenges like issue for freshness of the food, product damage, logistics and other challenges. But instead of these challenges the market is seem to rise in near future due to increase in the trend of using online shopping option.
Ecommerce: Market Trends and Drivers
Ecommerce market is primarily driven by the growth in the online shopping which gives multiple options at a glance. Also retailers are using strategies like same-day-delivery are helping them to grow the ecommerce market.
New preservation techniques used for the perishable foods is also one of the key driver responsible for the ecommerce growth. User-friendly interface, low costs, and daily delivery options have made the ecommerce more trending over traditional sellers.
Social media is also playing important role in driving the ecommerce market as the processing can be done using mobile phones which is one of the significant way of using ecommerce.
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Ecommerce: Market Segmentation
Ecommerce market can be segmented on the basis of their type of consumers and type of products.
On the basis of consumer type, the most of the uses are observed from the town region and mostly the working families will adopt to this due to lack of time and according to the convenience.
On the basis of type of products, ecommerce is segmented as perishable products and non-perishable products. Perishability of the product also depend on the preservation technique used for the product and the time of delivery of the product.
Ecommerce: Market by Geography
The ecommerce market is further segmented on the basis of regions as, China followed by Europe, Asia-Pacific, South Africa, Brazil and United States. Increase in the number of consumers is due to increase in the use of internet via broadband or mobile, where in china is growing daily with the smart phone market.
Also China’s e-tail market is dominated by Alibaba which is one of the big ecommerce site for selling different products including groceries. UK is increasing in the ecommerce of groceries because retails are moving to online shopping for the convenience of people which operate on 24 hour basis.
Also door step delivery options are increasing day by day. One of the main reason UK is leading ecommerce sector is due to investment of ecommerce giant Amazon.
Ecommerce: Key Players
The ecommerce for food and beverage is dominated by players like, Mondelez International, PepsiCo, and General Mills due to early adoption of the e-business. As the trend goes major online retailers like Walmart, Amazon are increasing their online grocery assortments.
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