Online packaged food and beverage sales could top $100B in 2021

During a presentation at the FMI Midwinter conference, held virtually this year, presenters Doug Baker, vice president of industry relations with FMI, and Elizabeth Buchanan, head of consumer intelligence for North America with NielsenIQ, said that more than 20 million consumers began buying CPG grocery products online in 2020. Many will continue buying online this year, and depending on numerous factors, including the vaccine rollout and the economic recovery, online packaged food and beverage sales could range from $94 billion to $109 billion.

The two noted that food retailers and CPGs have benefited from out-of-home eating and drinking occasions turning to in-home occasions. Beverages, wine and coffee categories topped e-commerce dollar growth. Overall, shoppers spent $66 billion on online food and beverages and $40 billion on restaurant delivery.

FMI and Nielsen did not include retail foodservice and meal kits into their sales figures and projections, as they have in the past.

Instacart, which counted nearly half a million contract shoppers among its ranks during the pandemic’s peak, served as a point of entry for many online grocery shoppers. According to FMI and Nielsen, the company raked in $15.7 billion in online food and beverage dollars in the 12-month period ended Nov. 30 — second only to Amazon, which totaled $17.4 billion over the same period. Walmart pulled in $6.5 billion in online grocery dollars while Kroger totaled $6.1 billion.