According to new research published by Infinium Global, the market for food e-commerce which was valued at USD 138 million in 2019, is projected to reach almost USD 500 million in 2026.
The growing use of subscriptions and memberships with online retailers is driving the growth of the global food e-commerce market. Nowadays, consumers have given up the hassles of buying daily groceries, and food services. The subscription-based e-commerce model allows the streaming service to meet specific user demands and cater to a wide-ranging audience. The millennials and urbanites with the highest spending power are looking for convenient, personalized, time-saving, cost-efficient ways to consume, and consume more. The majorities of these consumers prefer to buy their food via the web, as it allows them to save time, indulge in a wide variety of food products and eat more healthily. The use of subscriptions and memberships with online retailers offers huge potential for companies to capitalize on people’s desire to save time and consume more.
Office workers and business owners are the major consumers of the food e-commerce followed by housewives. The online food ordering and delivery business fill the void between busy professionals and nearby restaurants which offer professionally cooked meals. Furthermore, with the emigration of young professionals into major cities, the online food delivery sector has started emerging day by day. However, workers and students are the least consumer group of food e-commerce. People having other professions than the ones mentioned above also hold a significant share of food e-commerce.
Female customers consume more food e-commerce than males. The majority of consumers are from urban areas and having an age group between 20 to 40. Consumers prefer website platforms to buy products and convenience as well as certified food hygiene facilities are the most influencing factors for consumers while purchasing food. Moreover, the date of packing and expiry date are the most concerning information on the label of food for the consumers. According to consumers, expensive delivery charges are hampering the demand for the food e-commerce market.
Among the regions, Asia Pacific accounted for the largest share of the food e-commerce market in 2019. The largest revenue generated in this region is attributed to factors such as societal changes and the rise of a time-pressed middle class, transformative technology, enhanced e-commerce infrastructure, improving logistics enabling faster and more efficient purchases, and deliveries. Time-pressed shoppers seek different product assortments and more convenience. In addition, increased internet and mobile penetration, as well as adoption of digital payment solutions, is fueling the demand for food e-commerce in the Asia-Pacific region.Add to Favorites