CPG Ecommerce in the US: Expectations and Strategies for Growth - eMarketer
« Return to Mobile Website

Newsletters Sign-Up

Schedule a Demo

Does My Company Subscribe?

CPG Ecommerce in the US: Expectations and Strategies for Growth

eMarketer Report

By: eMarketer

Published: October 06, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Ecommerce represents a small percentage of overall packaged food and household goods sales, but brands are striving for growth beyond brick-and-mortar retailers.

  • While ecommerce in the consumer packaged goods (CPG) sector is expected to grow—and in some categories expand by double digits—the actual dollars spent in the channel are still small. It is estimated that just 1% to 2% of CPG sales are made digitally.
  • Even at 1% or 2%, there’s a lot at stake: About $58 billion is spent monthly overall in the US food and beverage category. Meanwhile, growth in traditional grocery sales is nearly flat. Over the past two years, many major brands have created or strengthened teams dedicated to mastering selling packaged goods products digitally.
  • Ecommerce is not just a sales channel but also a marketing channel, where content will be the defining factor in the battle for screens and attention. Brands that have recognized this have dedicated personnel and time to creating content and ensuring that that content will show up in searches.
  • Mastering ecommerce means working with Amazon.com and all its variations in the CPG sector, including Amazon Prime Pantry, Amazon Fresh and Amazon Dash. That’s because a great majority of CPG ecommerce sales are done through Amazon. Once brands get that right, they can use what they have learned to work with other digital retailers.
  • Brands must maintain relationships with traditional retailers, which are working on their own ecommerce strategies, including delivery and click-and-collect solutions.

"eMarketer expects US retail ecommerce sales in the food and beverage sector to have one of the highest compound annual growth rates (CAGR) by product category between 2015 and 2020."

Table of Contents

Buying Into Buying Online

This content is available to eMarketer PRO customers only. Request a live demo of PRO today to see what you can gain with access.

Request a demo today

CPG Ecommerce’s Potential

This content is available to eMarketer PRO customers only. Request a live demo of PRO today to see what you can gain with access.

Request a demo today

Strategies for Growth

This content is available to eMarketer PRO customers only. Request a live demo of PRO today to see what you can gain with access.

Request a demo today

Omnichannel: Why Traditional Retailer Relationships Still Matter

This content is available to eMarketer PRO customers only. Request a live demo of PRO today to see what you can gain with access.

Request a demo today

18 charts are included in the full report:

CPG Ecommerce in the US: Expectations and Strategies for Growth

US Retail Ecommerce Sales CAGR, by Product Category, 2015-2020

Buying Into Buying Online

Channels Used to Purchase Products According to US Internet Users, by Category, Feb 2016 (% of respondents)

Preferred Channel for Purchasing Select Product Categories According to US Internet Users, May 2016 (% of respondents in each group)

US Grocery Buyers Who Purchase Groceries Digitally, by Percent of Groceries Purchased Digitally, May 2016 (% of respondents)

Products/Services Purchased Digitally by US Digital Buyers, May 2016 (% of respondents)

US Millennial vs. Nonmillennial Digital Buyers Who Have Ordered from Digital Grocery Delivery Services, Feb 2016 (% of respondents in each group)

Food Items Purchased Digitally by US Internet Users, by Demographic, June 2016 (% of respondents in each group)

US Internet Users Who Currently vs. Plan to Purchase Groceries Digitally, by Age, March 2016 (% of respondents)

US Digital Grocery Sales, 2015 & 2016 (billions)

US Retail Ecommerce Sales Share, by Product Category, 2015-2020 (% of total)

CPG Ecommerce’s Potential

US Retail Ecommerce Sales Growth, by Product Category, 2015-2020 (% change)

Average Amount Spent on Digital Purchases by US Digital Buyers, by Product Category, May 2016

Factors Spurring Growth

US Digital Food and Beverage Spending, by Age, 2016, 2021 & 2036 (billions)

Strategies for Growth

US Grocery Buyers Who Prefer to Purchase Groceries Digitally from Local Stores vs. Online Vendors, by Vendor, May 2016 (% of respondents)

Omnichannel: Why Traditional Retailer Relationships Still Matter

US Retail Sales Share, by Category, 2020 (% of total)

Favorite Element of Purchasing Groceries Digitally According to US Grocery Buyers, May 2016 (% of respondents)

Primary Delivery/Fulfillment Method Used by US Millennial Grocery Buyers After Purchasing Groceries Digitally, May 2016 (% of respondents)

US Grocery Product Digital Purchase Share, by Fulfillment Method, Jan 2015 & July 2016 (% of total)