How E-Commerce Is Finally Disrupting The $600 Billion-A-Year Grocery Industry

Source: http://www.businessinsider.com/e-commerce-disrupting-600-billion-grocery-industry-2014-8

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At $600 billion a year in sales, food and beverage is by far the largest retail category in the U.S. by a wide margin. However, it’s also the category that has been the least disrupted by e-commerce; less than 1% of food and beverage sales currently occur online, according to BI Intelligence’s estimates.

But shopping habits are changing, and niche online grocery services that compete on convenience and selection are gaining traction. Meanwhile tech giants like Amazon are fronting the cost of expensive delivery infrastructure that has so far held back grocery e-commerce.

In a new in-depth report, BI Intelligence looks at why the grocery business has proved so challenging to e-commerce companies — from consumer reluctance to complicated and expensive logistics — and what new strategies e-commerce startups and big-name tech companies are pursuing to push more grocery sales online. Between 2013 and 2018, online grocery sales will grow at a compound annual growth rate (CAGR) of 21.1%, reaching nearly $18 billion by the end of the forecast period. For comparison, offline grocery sales will rise by 3.1% annually during the same period.

Here are some of the key findings explored in the report:

 

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By: Dr. Augustine Fou Thursday, August 28th, 2014 news

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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