The Future of Food Chains

CUSHMAN & WAKEFIELD

CONSUMPTION

E-GROCERY

Households will source and purchase a growing proportion of their food via the E-grocery market, reducing waste, while maximizing convenience and experimentation. As a result, supermarkets will re-focus efforts on revitalizing store concepts, with a drive to quality, variety and retained custom through detailed knowledge of consumer habits.

Further challenges also exist for retaillers, scaling a profitable online grocery operation remains a key challenge for the sector, owed to the complexity of consumer baskets and the associated costs of assembling, handling and processing a high frequency of orders.

The online grocery market the largest product category globally accounting for nearly half of global consumption, it is also the most severely lagging sector in terms of online penetration. With the online penetration rates for food significantly below that of other categories. This is largely due to the innate preference of consumers wanting to touch, see and smell their food in order to ensure quality.

GLOBAL SECTOR REVENUE & ONLINE PENETRATION

100

8000

80

6000

60

4000

40

2000

20

0

0

APPAREL

ONLINE FOOD DELIVERY

MEDIA

FOOD AT HOME

FURNITURE

(ONLINE PENETRATION %)

($ BILLION ANNUAL REVENUE)

GLOBAL REVENUE

ONLINE PENETRATION