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eCommerce Marketing Trends in the Food and Beverage Industry

Forecasting the eCommerce, Category and Consumer Shopping trends shaping the landscape across the FMCG (Food and Liquor) Industry Segments.

The Food and Beverage sector across Australia and New Zealand has had a tough time over the past few years, but their issue wasn’t a decrease in demand; their challenge was re-engineering their production and distribution supply chains to meet supply.

The expansion of eCommerce by major retailers like Woolworths, Coles, Chemist Warehouse, plus the rapidly growing memberships on eMarketplaces such as eBay, Amazon, and Catch, clearly highlights the continuous migration of audiences from in-store purchases to shopping online

Today’s Brand Marketers have been set with the task of blending new eCommerce marketing investments seamlessly with their traditional advertising media to reach these new ‘online audiences’.

Just as significant is the challenge for brands to stay across the ever-changing shopper influences e.g. health, environmental, and political concerns.

It’s critical that they understand how these will shape the development of the category, online and offline shopping behaviours, and ultimately, the purchase decision process.

Today’s shopper is more aware of health, environmental, and political concerns and how these shape the purchase decision process.

Brands are responding in their product development programs by shaping categories with nutrition, wellbeing, and sustainability offers designed to win new customers and drive category development.

“Now that FMCG eCommerce infrastructure is being put into place, brands will need to increase their investment to support expanded eCommerce activities.”

The FMCG sector is migrating their advertising spend from traditional channels towards eCommerce to maximise brand reach and awareness and stay ‘front of mind’ at the pre-purchase and purchase phase for shoppers. 

To date, FMCG brands have relied heavily on TV advertising, spending 60% more than other industries.

Post COVID-19 periods moved the marketing focus towards the online shopper for just about any business. As such, FMCG brands is predicted to increase their marketing spend across digital channels by an expected 2.7% in 2023.

FMCG Annual Growth Spend

eCommerce: up by 3%
Television: down by 1.2%
Radio: down by 3.4%
Newspaper: down by 6.1 %
Magazines: down by 7.9%

Brand marketers are faced with the challenge of guessing which digital sales platform they should be redirecting their trade spend budgets towards.

Which channel do they choose?
How much budget should they allocate?

To meet this challenge, FMCG brand marketers will need to work with digital brand agencies with proven experience in digital marketing and skills within the FMCG & CPG segment across category management, consumer shopping insights, and eCommerce marketing.

How Leading Brands Dominate Online FMCG Categories

eCommerce growth exceeded 50% in 2020/2021 despite the supply chain bottlenecks and will be a key battleground for FMCG brands in future years.

As the COVID-19 restrictions and lockdowns forced consumers to move towards online shopping, it highlighted the need for FMCG and CPG suppliers and retailers to move more of their products and services online and embrace omnichannel marketing sales programs.

Shoppers are continually influenced by social media and so-called ‘influencers’ persuaded to switch brands and change their research and purchase process. 

Brand marketers need to invest more in digital branding and online content marketing (e.g. education and engagement).

Just as crucial as online brand visibility is developing trust and social proof. This factor alone will be a key driver of winning the online sales space.

Increased eCommerce competition for ordering capability, service delivery, and product information forces FMCG brands to respond and adapt to market trends more quickly.

Dedicating budgets and resources to build out the product information and digital assets to populate retailer eCommerce stores and eMarketplaces will help promote your products online and grow consumer confidence (clicks to conversions).

Adopting new consumer trends such as environmental sustainability, health, and animal-free will remain important areas of concern for consumers. 

Food labelling information and brand values will remain a key touchpoint for consumers to learn the nutritional value of products and better understand the origin and lifecycle journey of the product, empowering them to make more informed choices.

Driving Future FMCG Strategies

As consumers continue to drive brand manufacturer and supplier’s product development, marketing, distribution, and eCommerce programs strategies, we’ve listed the critical influences that will shape your roadmap.

Online Shopping: As more consumers are now purchasing online, it’s essential that you focus on growing your eCommerce offer either via your webstore or through collaboration with your retail trading partners or eMarketplaces.

Multi-Channel: Shoppers are driving how, where, and when they purchase. Ensure that you understand your target customer and their shopping behaviour and tailor your marketing and sales program accordingly.

Meal Solutions: With the popularity of weekly meal packages, restaurant meal kits, and home delivery blurs the lines between takeaway and food retail.

Dietary Requirements: Consumers are paying more attention to what they eat – better information about the impact and effect of certain ingredients and diets is essential to building trust and confidence.

Environmental: Consumer concern for the environment has snowballed over recent years; increasing interest in food origins and sustainable operations is high amongst consumers.

Agile Category Development:  New brands entering or pivoting existing retail categories have the advantage of being nimble and provocative in their marketing. Introducing new marketing segments like animal-free or gluten-free allow them to disrupt the category, and change the marketing narrative with target consumers.

eCommerce Marketing: Divert marketing budgets and resources into growing your eCommerce channels. Focus on enriching your product information and images to drive more informative purchase choices and online sales conversions.

Drive your eCommerce Marketing

If you’re concerned about how your brands will continue to grow both in-store and online, there are a few things that you can do to drive resilience for your brands in the digital shelf space.

Develop an eCommerce Strategy
Learn how FMCG and CPG companies are identifying new growth and revenue opportunities using eCommerce digital sales channels and brand experiences. Learn More >>>

Learn to Drive Category Development using Digital
Use creative digital marketing and branding to boost your omnichannel and brand marketing campaign results. Learn More >>>

Access our eCommerce Marketing Dashboard
Use our eCommerce toolkit to help create high-performance omnichannel marketing campaigns that will open new markets and grow online sales opportunities! Visit Dashboard >>>

Improve your Product Launch Results using Digital
Boost your brand launches using digital brand experiences, social media marketing, and omnichannel sales and marketing techniques. Learn How >>>

Start building your eCommerce Strategy!

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Need some help?
Speak with Rob who has been working in the food and beverage industry for more than 30+ years.
Contact Us +61 3 9863-7444 or [email protected]