A new projection report by market research firm Kantar Worldpanel shows online sales of packaged goods will reach $53 billion by 2016.
Currently sales of fast-moving consumer goods (FMCG) accounts for a total of $36 billion, calculating a projected 47% increase by the year 2016, that number is expected to reach $53 billion. The FMCG products which were observed by Kantar exclude all fresh produce related goods and items.
According to Kantar Worldpanel, South Korea will continue to lead the pack when it comes to FMCG purchases, and is estimated to increase its market share to 13.8% by 2016, up from 10.2% currently. Other Asian countries such as Taiwan and China are also expected to see significant growth by 2016.
“The future belongs to retailers and brands that see the bigger picture and leverage the opportunities provided to broaden their target markets,” Stephane Roger, Kantar Worldpanel retail director, said in a statement.
France is predicted to surpass Britain as the top Ecommerce country in Europe. This is primarily due to the popularity of store pick-ups in the UK. France is expected to reach a 6.1% market share by 2016, a rise from its current 3.9%. Britain will see a slower growth rate and is predicted to hit 5.5% by the same year, an increase when compared to the current 4.9%.
NEXT BLOCK SOFIA 2.0 + Fabulous Blockchain After-PartyGo to article >>
Kantar Worldpanel’s report did state there still retailers and brands still hesitant about entering the Ecommerce space, primarily due to the still present fears of customer loyalty online.
“Being a slow adopter has the potential to significantly damage sales and erode market share.”
According to a recent report by US based Bernstein Research, and estimated 25% of all spending for consumer goods, approximately $222 billion a year, will be spent online.
Image courtesy of Pixabay