E-commerce Food And Beverages Market Size, Share & Trends Analysis Report By Type (Food, Soft Drinks & Alcoholic Drinks), By Region (North America, Europe, Asia Pacific, CSA, MEA), And Segment Forecasts, 2021 - 2028

Report Overview

The global e-commerce food and beverages market size was valued at USD 328.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2021 to 2028. The market growth can be credited to the increasing demand for food and beverages products on e-commerce platforms from developed nations. In addition, the rising importance of Ready-to-Eat (RTE) food products owing to hectic lifestyles amongst the working-class population at the global level is anticipated to expand the industry size in the coming years.

Furthermore, accumulative spending on shelf-stable foods amongst customers is expected to expand the market for frozen and packaged food over the forecast period. Additionally, growing health concerns, coupled with changing lifestyles and diets, have stimulated the demand for numerous snacking options around the globe. Growing replacement of meals with snacks, coupled with a number of consumers asking for vegan, allergen-free products, is a crucial trend boosting the market growth.

The COVID-19 pandemic resulted in the disruption of the overall market growth. The stoppage of the logistics sector and temporary production halts in the manufacturing factories caused a decline in product sales through the initial months of the pandemic. Though, the resumption of shipping operations and e-commerce websites is expected to give rise to steady growth in sales of these products.

However, the sales of packaged foods heaved considerably in 2020 in the developed nations owing to the COVID-19 pandemic. In addition, the customer expenditure on food grew considerably during the pandemic compared to before the pandemic due to the quarantine measures and social distancing practices. This trend is expected to have a positive impact on the market growth during the forecast period.

Moreover, growing innovations in healthy ingredients, bold flavors, plant-based products, and food packaging are anticipated to contribute to the growth of the market over the next few years. In addition, growing investments by key players in the latest technologies and focus on easy-to-shop experience on their platforms are predicted to drive the industry sales.

Similarly, promotional strategy and advertisement by the chief players aid in the growth of the market. However, a foremost disadvantage of e-commerce is the lack of fulfillment by e-commerce platforms. Even after the order is placed by the customer, there can be problems with the delivery, shipping, and mix-ups. This leaves the consumers dissatisfied and unhappy. And this is an important factor challenging the growth of this market during the forecast period.

Type Insights

The food segment accounted for the largest revenue share of more than 55.0% in 2020. This growth is credited to the increasing demand for food products on e-commerce portals in developed regions such as North America and Europe. The food segment includes fresh and packaged foods, fruits, vegetables, pasta, snacks, sweets, and frozen food. Rising customer preference for ready-to-eat food products, which offer higher shelf life and need the least cooking as well as preparation time, is a key propelling factor for the growth of this segment.

The soft drinks and alcoholic drinks segment is expected to expand at a CAGR of 7.2% from 2021 to 2028 owing to the increasing demand from developing regions such as Asia Pacific. An upsurge in disposable income, growing population, and customer preferences are anticipated to drive the demand for soft drinks and alcoholic drinks. Thus, all these factors are expected to foster the growth of this segment in the coming years.

Regional Insights

Europe led the global market in 2020 with a revenue share of over 30.0%. This growth is due to the rising demand for food and beverages on e-commerce in developed countries such as Germany, the U.K., and France. The existence of strong internet connection and expenditure power of people in this region are driving this market. Solid acceptance of long-shelf food products amongst the shoppers of key markets, including France, the U.K., and Germany, is anticipated to remain a key favorable factor for the industry growth.

Asia Pacific is expected to register a significant growth rate of 7.8% from 2021 to 2028 due to the increasing demand for these products in developing countries. Additionally, the growing trend of ready-to-eat food among the college grads and working-class population of countries such as China and India is driving the market in this region. Growing disposable income in the region is a prime factor for the growth of this market.

Key Companies & Market Share Insights

Major market players are focusing on R&D and introducing innovative methods with modern technologies, such as AR (Augmented Reality), for the purchase of products with a 3D display of products. Furthermore, key players are investing in new warehouses to escalate the storage and flourish supply chain of products in untapped regions worldwide. Similarly, structured organizations and regional and small-scale manufacturers are tying up with e-commerce platforms to expand their consumer base. Some prominent players in the global e-commerce food and beverages market include:

• Walmart, Inc.
• Amazon, Inc.
• JD.com
• Alibaba
• eBay.com
• Flipkart
• Shopify

E-Commerce Food & Beverages Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global e-commerce food and beverages market report on the basis of type and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)
  • Food
  • Soft Drinks & Alcoholic Drinks
• Regional Outlook (Revenue, USD Million, 2017 - 2028)
  • North America
    • U.S.
  • Europe
    • Germany
    • U.K.
    • France
  • Asia Pacific
    • China
    • Japan
  • Central & South America
    • Brazil
  • Middle East & Africa
    • South Africa