The online channel for FMCG continues to become more ‘mainstream’ in terms of shopper behaviour and it is a strong channel for brands.
An important long run consideration bearing in mind the current down-trading.
Online share of shopping trips continues to increase in the long term
Despite short term post-pandemic stability in most regions, the online share of FMCG shopping trips is still increasing in the longer term – by a third over the last 5 years globally and 36% higher even in the leading region, Asia Pacific.
Online basket sizes remain much larger than average but are dropping as the channel becomes more mainstream
Faster delivery options along with more knowledge and experience of online are leading to the channel becoming more ‘normal’ in terms of basket size. This will have implications for relevant and ‘more immediate’ product ranges and pack sizes.
Private Label continues to be underrepresented in the online channel
Manufacturer brands tend to do better online than in-store. Drivers will include trust and awareness as well as relative ‘presence’ in the online environment compared to Private Label. It is key to brands to maintain this presence.