Insights
- After peaking during the pandemic, online sales for retail and consumer packaged goods (CPG) companies slowed down in 2022.
- E-commerce is projected to account for 41 per cent of global retail sales by 2027, a significant rise from its 18 per cent share in 2017.
- In 2022, e-commerce grew 3 per cent in Europe and 7 per cent in the US and Asia.
After a surge in online sales during the pandemic, retail and consumer packaged goods (CPG) companies saw a slowdown in 2022. However, e-commerce is projected to make up 41 per cent of global retail sales by 2027, up from 18 per cent in 2017.
In 2022, e-commerce sales grew by 3 per cent in Europe and 7 per cent in both the US and Asia. Global growth is anticipated to hit a 9 per cent compound annual growth rate (CAGR) through 2027. While this falls short of the 12-14 per cent pre-COVID trend, it still more than doubles the projected 4 per cent growth in brick-and-mortar retail, according to a study titled ‘Winning Formulas for E-Commerce Growth’ by Boston Consulting Group (BCG).
Companies were categorised as ‘winners’ or ‘laggards’ based on their post-pandemic growth. Winners, who reported growth above 30 per cent per annum and have a positive outlook for 2027, made up 27 per cent of retail and 20 per cent of CPG respondents. Laggards, reporting 10 per cent or less growth and lacking confidence in future e-commerce growth, constituted 21 per cent of retailers and 25 per cent of CPG companies surveyed.
After peaking during the pandemic, online sales for retail and consumer packaged goods (CPG) companies slowed down in 2022.
E-commerce is projected to account for 41 per cent of global retail sales by 2027, a significant rise from its 18 per cent share in 2017.
In 2022, e-commerce grew 3 per cent in Europe and 7 per cent in the US and Asia.
Fibre2Fashion News Desk (NB)
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