A new report from research organisation IGD (in association with The Consumer Goods Forum), reveals digital technologies are revolutionising the way the food and consumer goods industry operates, with online sales forecast to grow 163 per cent by 2023.
According to the report, major grocery ecommerce markets will continue to expand rapidly, growing at almost four times the rate of any other channel.
The report predicts grocery ecommerce sales in Asia-Pacific will triple over the next five years, with IGD forecasting that in 2023, the ecommerce share of grocery in Asia (7.5 per cent) will be twice that of North America (3.4 per cent) and close to three times larger than Europe (2.5 per cent).
“We are living in exceptional times, with an extraordinary burst of retail innovation, driven by digital developments,” IGD CEO Susan Barratt said.
IGD’s report aims to help retailers and suppliers understand the three digital models that are said to emerge from the digitisation of the food and Consumer Packaged Goods (CPG) industry.
The digital models
- Rapid evolution
According to the IGD report, businesses are transforming their established operations through digital technologies to enhance their stores, reduce cost and improve connection with customers.
- Ecommerce 2.0
It is said the standardised wave of e-commerce is fragmenting in a variety of creative new ways to sell and add value, making way for the rise of e-commerce 2.0.
- Ecosystems
The IDG report suggests that a network of retail and consumer services is emerging, linked by logistics, financial services and technology.
The IDG report
The Consumer Goods Forum Managing Director Peter Freedman says growth remains challenging for all of the established players in the industry. Nevertheless, many are finding that the ongoing disruption presents exciting opportunities.
“This report presents several ideas for consumer goods and retail companies looking to secure their long-term future,” he said.