E-Commerce
Sources of growth and the role of Private Labels
As e-commerce becomes more widespread, baskets become more “normal”
Over the past two years global e-commerce value (i.e. based on the 43 countries we cover) in grocery has grown by about 14%. This growth can be attributed to more people shopping online (42% in 2021, 45% in 2024), doing it more often (20 times in 2021, 23 times in 2024), but spending less per trip. While the average online basket is still much larger than its offline counterpart, we see the gap shrink. Online shopping seems to become more habitual – and not reserved for bulk trips.
Online buying features less Private Label
In spite of retailer’s ability to present their Private Label merchandise even more centerstage in online stores than in physical ones, shoppers’ online baskets feature a lower PL share.
Some speculative reasons:
- Online choices may be perceived as more risky because products cannot be inspected: shoppers therefore choose well-known brands.
- Shelf space is the same (one facing) for all SKUs: retailers cannot block PLs as prominently as in offline stores giving national brands relatively better exposure online.
- Online trips may be more strongly guided by efficiency motivations (“save time”): the importance of price in decision-making is lower.
We are curious what you think.
