The global e-commerce food and beverages market size is expected to reach USD 566.0 billion by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 7.4% from 2021 to 2028. The market growth can be attributed to the growing demand for food and beverages on e-commerce portals from developed and emerging economies.
E-commerce Food & Beverages Market Report Highlights
- Asia Pacific is expected to register the fastest growth rate of 7.8% from 2021 to 2028 owing to the growing population and the rising demand from the millennial population in developing countries, such as China and India.
- The food type segment held the largest revenue share of over 55.0% in 2020 owing to rising demand for these products from developed and developing regions.
- Europe dominated the market with a revenue share of over 30.0% in 2020 owing to the rising demand for food and beverages on e-commerce as a result of high internet penetration and high purchasing power of consumers.
Rising health awareness amongst the population and increasing incidence of secondary diseases owing to poor eating habits and obesity are propelling the demand for fresh fruits and vegetables. The growing trend of exotic fruit products, coupled with the preference of people for a vegan diet, is aiding the market growth. The market growth is projected to remain strong as the industry trends are mainly influenced by health-conscious generation x and millennials.
The industry growth is anticipated to be more online than offline in the near future and online retail groceries will take up the foremost market chunk. The industry players are expected to take up product introductions and strategic joint ventures to keep ahead in the market and reinforce their position in the developing markets.
The food type segment is projected to observe lucrative growth over the forecast period. The food segment includes fresh and packaged foods, fruits, vegetables, pasta, snacks, sweets, and frozen food. This growth is credited to the accumulative demand for these products in developed regions, such as North America and Europe. A growing working population and consumer preference for ready-to-eat food are also some of the important factors augmenting the segment growth.
North America is projected to witness considerable growth during the forecast period. The growing demand for fresh fruits and vegetables, coupled with alcoholic drinks, in countries such as the U.S., is anticipated to generate revenue in this region. The growth of the market in this region is accredited to massive investment in the U.S. in terms of technology and the quality of the products.
