Singapore, SG, 24 September 2018 – Global online sales of FMCG products is growing four times faster than offline sales, with Asia setting the pace for growth in the coming years in online FMCG sales, according to a new report by global measurement company, Nielsen.
The Nielsen Future Opportunities in FMCG E-commerce Report, which examines the current growth drivers of FMCG e-commerce in 34 markets, highlights the rapid pace at which FMCG e-commerce will grow over the coming years (18.4% CAGR annually) and estimates total global sales will reach as high as US$400 billion by 2022.
The Asia Pacific region is expected to provide some of the biggest growth opportunities for online FMCG over the next five years, with 43% of the region’s consumers already using e-commerce platforms for home delivery of products, and a further 15% indicating better internet connectivity would increase their propensity to shop online.
Closer to home in Singapore, online spending in the share of wallet by omni-channel shoppers has grown significantly in the past year (43% in 2018 MAT (Moving Annual Total) vs 25.1% in 2017 MAT), as per Nielsen Singapore data. The top 3 FMCG categories purchased from online stores were notably from the Infant Milk, Diaper & Beer and Lager categories.
“The e-commerce revolution continues to gain traction within the FMCG industry, with the growing appetite for convenience paving the way,” notes Raymond Cheung, Head of Retail Vertical, Nielsen Singapore. “Overcoming key barriers for online grocery shopping adoption – concerns on product quality, accuracy of delivery, will set the stage for brands to thrive in the digital economy, as omni-channel offerings continue to cater to the evolving consumer needs. To help retailers and manufacturers have access to reliable, censored online and offline data, Nielsen has recently launched its omni-channel solutions.”
ABOUT THE NIELSEN FUTURE OPPORTUNITIES IN FMCG E-COMMERCE
The Nielsen Future Opportunities in FMCG E-commerce report presents the changing FMCG e-commerce landscape in 34 markets (including Singapore), influenced by foundational, macro-economic, social and supply growth drivers. Smartphone penetration, internet access, online banking, delivery infrastructure and need for convenience has encouraged consumers to buy FMCG online in many markets. This report estimates the percentage e-commerce channel share and market size of online FMCG compared to offline sales for 34 markets, by the year 2022. It provides insights to manufacturers and retailers to pursue FMCG e-commerce strategies that will help sustain and maximise growth opportunities in the coming years.
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.
For media inquiries: Sweta Patra (Sweta.Patra@nielsen.com) and Gideon Choo (Gideon.Choo@nielsen.com)