Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
At the FMI-The Food Industry Association conference, Nielsen outlined its outlook for online grocery spend in 2021.
In the 52 weeks ended November 30, online food and beverage sales (including grocery and restaurant online delivery) accounted for 12% of sales. Food and beverages became the largest online CPG segment representing 44% of sales.
Healthy and beauty followed with 38%, home, and kitchen at 8%, pet supplies at 8%, and baby care at 2%. CPG food and beverages totaled $66B compared to $40B for restaurant delivery.
Looking to the future, NielsenIQ forecasts CPG food and beverage online sales of $103B in 2021 with a low estimate of $94B and a high estimate of $109B, as seen in the chart below. That represents a growth range of 42-65%.
With CPG sales in grocery stores set to decline in 2021 against the pandemic comparisons, a shift of that magnitude would make the margin drag of online sales more obvious.