Friday 28th Feb 2020 - Logistics Manager Magazine

UK FMCG e-commerce penetration to hit 9% by 2025

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The UK remains the most advanced country in Western Europe for FMCG e-commerce, with a market penetration of 9% predicted for 2025.

According to Kantar Worldpanel UK online FMCG, as a percentage of total FMCG sales, was 7.6% for the 12 months ending June 2019, compared to 7.4% in the same 12 month period a year ago.

Total FMCG value growth in the UK, both online and offline, was 2.4% in the same period, with online FMCG value growth of 5.9%.

The UK has the biggest share of online FMCG in Western Europe followed by France at 6.2%. (up from 5.9%) and Spain at 2.4% (up from 2.3% a year ago).

However the UK and Europe lags behind East Asian economies. South Korea has the greatest degree of online pentration in FMCG sales at 20.3% (up from 18.2%) followed by the Chinese mainland (15.2%, up from 11.8%) and Taiwan (8.7%, up from 7.3%).

Kantar predicts that online shopping will represent almost one third of FMCG sales in the Chinese mainland by 2025 and one quarter in South Korea.

However, in the UK and France, Kantar online sales will make up 9% and 8% respectively of total FMCG sales. This will be more in line with the global average.

Stéphane Roger, global shopper and retail director at Worldpanel Division, Kantar, said: “We predict that by 2025, online grocery sales will double, meaning that 10% of global FMCG sales will happen online.

“The continued demand for convenience in urban areas, the integration between online and offline, the creation of new direct-to-consumer options and more technology will all help reach new targets beyond the current profile of affluent families with children.”