PUBLISHER: The Business Research Company | PRODUCT CODE: 1672357
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672357
Food and Beverage (F&B) e-commerce pertains to the online retailing of food and beverage products and associated services, primarily intended for household consumption. F&B e-commerce involves the entire process, from processing raw food materials and beverages to packaging, distribution, and the provision of an online portal or application for sales.
The primary categories of Food and Beverage (F&B) e-commerce include grocery delivery and pickup, Direct-to-Consumer (DTC) products, meal kits, fresh ready-to-eat meals, and restaurant meal delivery. Direct to consumer (DTC) Products denote the direct distribution of a product to consumers without intermediaries such as wholesalers or limiting sales to retail outlets. The delivery channels encompass options such as pick-up and home delivery, catering to both households and business end-users.
The food and beverage (F&B) e-commerce market research report is one of a series of new reports from The Business Research Company that provides food and beverage (F&B) e-commerce market statistics, including food and beverage (F&B) e-commerce industry global market size, regional shares, competitors with a food and beverage (F&B) e-commerce market share, detailed food and beverage (F&B) e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the food and beverage (F&B) e-commerce industry. This food and beverage (F&B) e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The food and beverages e-commerce market size has grown rapidly in recent years. It will grow from $644.8 billion in 2024 to $752.45 billion in 2025 at a compound annual growth rate (CAGR) of 16.7%. The growth in the historic period can be attributed to increase in clean-label, organic, and non-gmo products, rise in alcohol consumption, increased pet ownership by gen z and gen y adults, strong economic growth in emerging markets, influence of increased demand for processed foods, rise in awareness of benefits of organic products, and growing number of health-conscious consumers.
The food and beverages e-commerce market size is expected to see rapid growth in the next few years. It will grow to $1481.29 billion in 2029 at a compound annual growth rate (CAGR) of 18.5%. The growth in the forecast period can be attributed to rising penetration of organized retail, increasing demand for ready to eat products, faster economic growth and rise in global population. Major trends in the forecast period include focus on using natural ingredients in their products to address health-related concerns of consumers, focus on offering functional beverages for hydration and nutritional benefits, focus on micro-distilled/artisan spirits to cater to the growing demand, focus on high-pressure pasteurization techniques to preserve nutrients and eliminate harmful microorganisms, focus on offering clean label products in response to the growing awareness of healthy food, focus on adopting robotics and automation technology to maximize production efficiency, focus on using innovative filter technologies to reduce toxicants in cigarettes and enhance the smoking experience, focus on offering the products on e-commerce platforms, and focus on using artisanal cooking methods for making food and beverages.
The rise in smartphone users has significantly boosted food and beverage (F&B) e-commerce sales globally. Smartphone users constitute the primary demographic of online shoppers in the F&B sector, and as their numbers grow, so does the potential for increased online shopping for food and beverages. For example, in February 2023, Uswitch Limited, a UK-based financial conduct authority, reported that there were 71.8 million mobile connections in the UK in 2022, marking a 3.8% (approximately 2.6 million) increase from 2021. The UK population is projected to reach 68.3 million by 2025, with an estimated 95% (around 65 million individuals) expected to own a smartphone. Therefore, the rise in smartphone users and internet penetration is driving growth in the food and beverage e-commerce market.
The increasing consumption of functional and ready-to-eat food products is expected to further propel the growth of the food and beverage e-commerce market in the future. Functional foods are those that offer health benefits beyond basic nutrition when included as part of a regular diet. E-commerce platforms for food and beverages provide convenient access to these functional foods, promoting healthier lifestyles through online shopping. For instance, in April 2024, Agriculture and Agri-Food Canada, a Canadian government agency, reported that sales of ready meals, which are classified as ready-to-eat (RTE) foods, reached $3.19 billion (Can$4.4 billion) in 2023, with total ready meal sales rising from $6,362.2 million (Can$8,773.6 million) in 2022 to $6,633.65 million (Can$9,147.9 million) in 2023. Thus, the growing demand for functional food products is driving the food and beverage e-commerce market.
With the advancement of technology and evolving human interaction with products and services, the routine engagement in online shopping and web exploration for Food & Beverage (F&B) items is becoming commonplace. This shift is notably impacting F&B e-commerce positively. In 2022, the count of online shoppers reached 2.14 billion, constituting 27% of the total world population. An overwhelming 80% of consumers express a preference for detailed information regarding their purchases, deeming it crucial in their decision-making process. Consequently, this trend is expected to propel and broaden the opportunities for online businesses in the food and beverage sector.
Key companies in the food and beverages e-commerce market are strategically emphasizing partnerships to drive revenues. Collaborative efforts involve expanding product offerings, reaching new customer segments, and improving supply chain efficiency. For instance, in September 2022, Thirstie Inc., a US-based provider of e-commerce solutions for beverage alcohol brands, entered into a partnership with William Grant & Sons Ltd., a UK-based spirits company. This collaboration aims to advance William Grant's global e-commerce strategy and provide consumers with digital access to its premium spirits portfolio.
In March 2022, Emami Ltd., an Indian manufacturer and seller of personal care products, acquired a 19% stake in TruNative F&B Pvt. Ltd. This acquisition positions Emami to venture into a new business segment. TruNative F&B, based in Mumbai, is a Direct-to-Consumer (D2C) nutrition company.
Major companies operating in the food and beverages e-commerce market include Walmart Inc, Amazon.com Inc, Koninklijke Ahold Delhaize N.V, Alibaba Group Holding Limited, Target, Kroger, General Mills, PepsiCo, Bigbasket, Swiggy, Zomato, Amazon Fresh, Blink Commerce Private Limited, Meituan, Woolworths Group, ELEME Inc, Dangdang, Vipshop, Amazon China, Flaschenpost SE, Shop.rewe.de, Amazon EU Sarl, Bofrost.de, Cooperative U Enseigne, Auchan Retail France SAS, ITM Alimentaire International SAS, Mercadona.es, Carrefour.es, Coop Sverige AB, MatHem i Sverige AB, Utkonos, Auchan, Sima-Land OOO, Frisco S.A., Auchan Polska Sp. z o.o, emag.ro, Rohlik.cz Finance as, Finestore Distribution S.r.l., Sobeys Inc, Loblaws Inc, Walmart Canada, Costco Wholesale Corporation, Chedraui Group, HelloFresh, Albertsons Companies, Dia ArgentinaInc. S.A., mercadolibre.com.ar, Cencosud Retail SA, Majid Al Futtaim Group, LULU UAE, Souq, Kibsons, Strauss Coffee B.V., Panko Group Ltd., Ecart Internet Services Nigeria Limited, Jumia Nigeria, Drinks.ng, Carrefour Egypt
North America was the largest region in the food and beverage (F&B) e-commerce market in 2024. Asia-Pacific was the second-largest region in the global food and beverage (F&B) e-commerce market share. The regions covered in the food and beverages e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the food and beverages e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The food and beverage (F&B) e-commerce market includes revenues earned by entities by fresh, prepared, and packaged foods and alcoholic and non-alcoholic beverages. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Food And Beverages E-Commerce Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on food and beverages e-commerce market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for food and beverages e-commerce ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The food and beverages e-commerce market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.