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Food online: it whets my appetite!

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Food&Grocery is one of the sectors of highest interest in the Italian B2c eCommerce scenario, both for the huge and still unexpressed potential and for the ferment going on in the offering sector over the last two years. In 2016 the eCommerce in Food&Grocery market, that is what Italian consumers purchase on both Italian and International sites, is worth 575 million euros, + 30% compared to 2015. Even though Food&Grocery represents one of the major expenditure items for Italians, as of today its online spread has been limited: the weight of online purchases on total Retail purchases equals 0.35%. Food products generate 90% of the market. Health&Care products are worth 10% but have a significantly higher growth rate. The Food sector is made up by over 90% of food product purchases and less than 10% by Wine. Traditional operators (retailers and producers) are the sector’s leaders, but Dot Coms are growing at a faster rate. Amazon’s entrance in the sector, the increasing contribution of Flash Sales players, and the development of the take-out food delivery sector – dominated by aggregators – are the main reasons at the basis of this trend. We believe the modest expansion of online in this sector is primarily due to a shortage of supply that for a long time characterized the Italian market. Something has changed though in recent years and there has been a proliferation of online initiatives. The offering has extended in all sectors, from supermarket to deli products, from wine to take-out.

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