According to the 1010data, Inc., Online Consumer Packaged Goods (CPG) Industry Report, by Julia Millot, market research analyst, for the first time since 1010data began tracking the market, online CPG sales surpassed $10 billion. Many of the largest product categories within CPG, including health supplements, pet care and cosmetics, each generated more than $1 billion in sales.
Total CPG revenue in 2016 was $10.4 billion, up from $7.6 billion in 2015, says the report. The 2016 data showed a nearly even split in revenue between the first and second halves of the year, implying that consumers are more frequently buying CPG products online year-round.
The report shows that CPG companies that invested in low-priced, natural products had big payoffs in 2016. Other key findings from 1010data’s report include:
The report also notes that online CPG sales have grown twice as fast as total ecommerce sales, which had a 16% year over year growth rate in 2016. Accelerated sales growth include the fact that more online retailers offer free two-day shipping and subscription options
Sandy Steier, CEO and Co-Founder of 1010data, says “… 1010data estimated that CPG online sales… in key categories would reach $10 billion in 2016… (and) indications are that there is no sign of slowing in the online CPG market… “
1010data’s report also points to emerging trends for 2017, including: