Commentary

Ecommerce Up 30% in 2015, CPG Up 42%

According to estimates from 1010data, reported by Jack Neff for AdAge, retail e-commerce sales grew by 30% over 2014, but In-store sales for most categories remained nearly flat according to the U.S. Census Department. Consumer packaged goods (CPG) grew at an even faster pace of 42% than total e-commerce year over year. Much of the growth was fueled by Amazon’s Subscribe and Save feature (SNS,) being the default selection for many Amazon users as they check out. Over 20% of all growth in CPG came from SNS.

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Amazon SNS revenue for the 50 CPG categories measured grew by 214%, the benefit of the compounding nature of subscription sales. The 3 largest SNS categories were baby diapers, pet food, and coffee. The fastest growing were hair care, baby wipes, and deodorant.

The fastest growing category across total e-commerce measured was Laundry Detergent with 85% Y-O-Y growth. Laundry Detergent is dominated online by Tide, who had 48% percent market share.

Top-Selling Detergent Brands by Percentage of Market Share

Brand

Share of Market

Tide

47.80%

Gain

6.20%

Seventh Generation

5.70%

All

4.70%

Method

3.60%

Arm & Hammer

2.90%

Charlie’s Soap

2.70%

Mrs. Meyer’s

2.60%

Dreft

1.80%

Other

21.90%

Source: 1010data, February 2016

The category that came in second place for growth was Toothpaste with 75% Y-O-Y growth, with Crest leading the way in terms of market share. Colgate Palmolive owns both the Colgate brand and Tom’s of Maine. When both brands are combines, as a manufacturer, Colgate Palmolive is the leading seller online toothpaste seller with 26% market share, says the report.

Top-Selling Tooth Paste Brands by Percentage of Market Share

Brand

Share of Market

Crest

23.90%

Colgate

15.50%

Sensodyne

13.70%

Tom’s of Maine

10.40%

Arm & Hammer

2.90%

Marvis

2.50%

TheraBreath

1.60%

Aquafresh

1.40%

Rembrandt

1.30%

Other

26.90%

Source: 1010data, February 2016

Top Ten CPG US Ecommerce Categories Y-O-Y Growth

Category

% Ecommerce Growth

Laundry Detergent

85%

Toothpaste

75%

Health Snack Bars

74%

Deodorant

71%

Adult Nutrition

68%

Baby Wipes

68%

Protein Powder

66%

Bottled Water

63%

Mouthwash

63%

Baby Diapers

61%

Beauty Primers

60%

Source: 1010data, February 2016

The largest category in CPG, according to 1010data estimates, is pet food, which did $760M in e-commerce sales in the U.S. in 2015, up 55% from $490M the prior year. The next largest categories were Facial Moisturizers and Fragrances with $450M and $330M in revenue respectively and 25% and 11% growth respectively.

The fastest growing brand that did more than $5M in annual sales in 2015 was Amazon’s own CPG brand (Amazon Elements) that sells parenting staples such as Amazon Elements Baby Wipes. Amazon Elements grew by over 4000% in CPG sales. Bai energy drinks grew by 625% and took the second place in growth for $5M+ brands.

E-commerce is still less than 10% of total sales and often less than 5% for major CPG manufacturers such as P&G, J&J, Unilever, Mondelez, Coca-Cola, and Pepsi. However, the majority of their sales growth in the U.S. is coming from e-commerce in many categories, says the report.

The panel data for this report comprises analysis of the top 100 online retailers in the US, covering approximately 95% of total retail purchases as defined by 1010data.

To review the published article, please visit here; or from !010data please go here.

 

 

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