E-Commerce for Food and Beverage: Adopt Digital Grocery Models

Have you purchased groceries online? If you are like most modern-day consumers, then you probably answered yes! 58% of shoppers surveyed use online services to shop for groceries and a further 26% said that they would be open to the idea (1). The digital grocery market is expected to grow even more within the next few years. The Statista Digital Market Outlook estimates that by 2025, revenue from the e-commerce food and beverage industry in the United States alone will rise to $35.7 billion—making up 15% to 20% of the industry’s overall sales (2). Food and beverage companies adopt digital grocery models to keep up with the competition.

The Acceleration of the Digital Grocery Market Due to COVID-19

When the pandemic hit in 2020, consumer and manufacturers alike were forced to turn to digital shopping models. Experts say COVID-19 accelerated the shift to online shopping by as much as 5 years (3). Food and beverage e-commerce saw the biggest jump, and became the largest online CPG segment, accounting for 44% of online sales (2). 74% of consumers preferred to visit online grocery platforms than go to the supermarket (4). With social distancing in effect and supply chains constrained, small and midsize food and beverage companies needed to quickly adopt digital grocery models to stay afloat and provide consumers with the essential goods they needed.

Digital Grocery is Here to Stay

While COVID-19 may have accelerated the adoption of digital grocery shopping, growth shows no signs of stopping post-pandemic. 84% of shoppers identified at least one way that their habits have changed for good (1). Specifically, 85% of shoppers are continuing to use curbside pickup and 90% of consumers are expected to continue using home delivery, even with the reopening of retail stores (4). Consumers have grown to love the convenience and accessibility of online shopping. Food and beverage businesses who were forced to quickly adopt e-commerce technology are now primed to succeed in an increasingly digital marketplace.

How F&B E-Commerce Companies Stand-Out from the Competition

With the explosive growth of e-commerce in recent years, the digital grocery marketplace is more competitive than ever. To stand out from the competition, food and beverage companies who adopt digital grocery models need to meet rising consumer expectations. Integrated business technology can help by providing real-time order, production, and inventory visibility, as well as providing valuable insights into demand data. Implementing this type of technology can help food and beverage companies perform the following best practices and get ahead:

• Offer customized shopping experiences
• Optimize your e-commerce site
• Capitalize on mobile shopping trends
• Use omnichannel selling to maximize profits
• Offer free delivery and simple return processes
• Build brand reputation with enhanced web presence and social media

Conclusion

The digital grocery market is here to stay, and small and midsize F&B companies need to find ways to differentiate themselves from the competition and excel above larger corporations. To appeal to the digital consumer, modern food and beverage businesses need to meet increasingly high expectations. Business technology designed specificaly for F&B can provide the cutting edge needed to adopt digital grocery models and thrive in a crowded marketplace.

Sources:

1. https://info.fieldagent.net/hubfs/Campaigns/2021%20The%20State%20of%20Digital%20Grocery/Field%20Agent%20-%20The%20State%20of%20Digital%20Grocery%202021.pdf
2. https://www.shopify.com/enterprise/food-and-beverage-industry-trends
3. https://www.shopify.com/enterprise/global-ecommerce-statistics
4. https://www.websitetooltester.com/en/blog/ecommerce-statistics/