The consumer packaged goods market is enjoying strong online sales, with the industry expected to surpass $10 billion in online sales for the first time in history.
That’s according to 1010data’s new study of the consumer packaged goods market. According to the research firm, online sales of consumer packaged goods increased 42 percent in the first half of 2016 compared to the same period a year ago. If the trends continue, the research firm said online sales in that segment will surpass $10 billion.
“Our data shows that online challengers are making a big impression in their market segments because eCommerce helps them achieve massive growth without the high upfront costs that traditional CPG companies must incur in marketing, distribution and product visibility at brick-and-mortar stores,” said Natalie Seidman, SVP of data insights at 1010data, in a press release highlighting the research results. CPGs that want to stay competitive need to get a sense of how consumers shop online, what levers a brand has to increase sales and where marketing and product resources are best allocated, said Seidman. “Leveraging eCommerce insights can enable CPG brands to better compete in the rapidly evolving online shopping world, their primary opportunity for revenue growth in U.S.”
1010data found the shift toward online shopping in the CPG market started in 2015 when online sales went to $7 billion from $5 billion in 2014. At the same time, consumer spending in stores for consumer packaged goods is flat to only up 4 percent. In terms of which areas of CPG are seeing the most growth, 1010data found the health supplements and pet categories enjoyed the most online sales, already surpassing $1 billion in health supplements and $700 million in pet care. While pet care is the fastest-growing market in the category among those with at least $200 million in annual sales, laundry and dish is the fastest-growing category overall.