Rising internet penetration, growing online platforms for B2B market, increasing shift towards online purchase are the leading factors driving the global B2B online grocery market during the forecast period.
According to TechSci Research report, “B2B Online Grocery Market – Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2017-2027F”. The global B2B online grocery market is propelled to grow by 8.97% in the forecasted years owing to the factors such as rising preference for online purchase, ease of approaching the online market players for contract, growing digital shift for the mode of transaction within B2B segment. However, there are still certain complexity of transaction which act as a hinderance to the growth of this market.
Online grocery shopping that is B2B (business-to-business) involves businesses rather than consumers buying fresh, packaged, and frozen food items like cereals, drinks, vegetables, fruits, meat, seafood, poultry, dairy, and a number of other cooking essentials. A business-to-business transaction takes place between two businesses, like a wholesaler and an online retailer.
Only 4% of B2B transactions take place online at the moment, with Amazon Business accounting for at least USD10 billion in yearly sales. 49% of transactions are still completed manually over the phone, by fax, or during in-person meetings with account managers and sales representatives. The remaining transactions take place using e-procurement and electronic data exchange (EDI) systems, antiquated B2B transaction-specific technologies. Brands, makers, and small manufacturers are harder to reach because they are a smaller audience and have historically been slow to adopt new technology. In addition, B2B buyer/seller transactions are complex (e.g., require payment financing, invoicing/approvals, inventory management), and requirements vary from vertical to vertical. For these reasons, there aren’t many B2B aggregators.
However, post COVID-19 pandemic is the B2B Online Grocery market witnessed a significant change within the market conditions. Pre-COVID-19, lesser than 8% of the B2B market dealers showed significant interest towards a digital alternative. By creating an on-demand grocery app solution, major market players, start-ups, and numerous other small and medium-sized businesses have moved their conventional offline grocery stores to online channels.
Browse over 114 market data Figures spread through 151 Pages and an in-depth TOC on the “Global B2BOnline Grocery Market.”
The global B2B online grocery market is segmented based on product category, mode of payment, region, and competitional landscape. Based on product category, the market is further fragmented into Fruits & Vegetables (Raw & Processed), Condiments and Seasoning, Food Grains & Flours, Bread & Bakery, Dairy Products, Meat, Poultry & Seafood, Others (Snacks & Confectionery, Beverages, Others Processed Foods, etc.). Based on mode of payment, the market is segmented into Pre-Delivery Online Payment, Online Payment on Delivery and Cash on Delivery.
Among product category, the Meat, Poultry & Seafood category is the most developed market for B2B Online Grocery, which commands a significant market share. The Meat, Poultry & Seafood segment also accounts for about the maximum share within the B2B Online Grocery category market owing to the rising target audience for the online purchase of these products Moreover, according to the most recent Power of Meat report from FMI, nearly all-American households (98.5%) purchase meat (The Food Industry Association and the Meat Institute). The percentage of consumers who say they eat meat has increased from 71% to nearly 74%. Younger generations are more likely to shop online for groceries. Only 38% of Boomers shop online for the same meat and poultry products that Gen Z consumers do. The market for is anticipated to rise due owing to these factors.
In terms of mode of payment, the pre-delivery online payment method is still used to register the demand, followed by card on delivery and cash on delivery. Pre-payment is preferred because most people who place online orders won’t be there to accept the delivery. The majority of supportive tasks are handled by the store helpers within various nations, and they frequently pick up and deliver orders, so customers prefer to pay online.
Key market players in the Global B2B Online Grocery market include:
- Walmart Inc.
- Alibaba Group
- Amazon.com, Inc.
- The Kroger Co.
- EC21, Inc.
- eWorldTrade, Inc.
- BigBuy
- 3 Seasons Technology Co.,Ltd. (eFoodChoice)
- OKNETTV PTY LTD (Agorara)
- SeeBiz Inc.
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” The order criteria for the grocery industry are much more complicated than those for general retail. For instance, compared to other industries, perishability, weight, and volumes frequently vary more by line or even by product. Business customers may have particular tastes in the types of products they prefer, from particular meat cuts to the ripeness of a banana and the issue of pricing. However, the market is witnessing a significant shift after COVID-19 pandemic. Therefore, the market is expected to propel in the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
B2B Online Grocery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2017-2027F Segmented By Product Category (Fruits & Vegetables (Raw & Processed), Condiments and Seasoning, Food Grains & Flours, Bread & Bakery, Dairy Products, Meat, Poultry & Seafood, Others (Other Snacks & Confectionery, Beverages, Others Processed Foods, etc.)), By Mode of Payment (Pre-Delivery Online Payment, Online Payment on Delivery, Cash on Delivery), By Region”, has evaluated the future growth potential of global B2B online grocery market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in B2B online grocery market globally.
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