SIAL Insights: Digital Sector Remains Popular with Consumers

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Customers were required to stay at home due to the global epidemic. They used online shopping sites to buy necessary household goods as a result. According to SIAL Insights, digital technology continues to have a significant impact on all facets of how consumers interact with food.

Through digital services like online shopping and click and collect, consumers have the ability to shop frequently while feeling safe and maintaining a social distance. Even in the most developed regions, like Asia, which is the leader in every category, these advantages attracted new and enduring converts. In fact, Asia accounted for 45% of all consumer product online sales in 2022, which is nearly twice as much as the United States and Western Europe.

According to the SIAL survey, new offerings like subscription boxes and meal kits as well as increased accessibility have contributed to the continued popularity of online shopping platforms in Western nations.

Evidently, consumers continue to favor the digital industry. According to a Kantar survey, the industry has been mostly unaffected by the pandemic. The overall growth of the global food market increased by 2.1% points between 2021 and 2020. During the same time period, global food product e-commerce increased by 15.8%.

Additionally, a growing percentage of shoppers (40%) are using e-commerce sites. Additionally, 10 or more times each year, this market group uses e-commerce. When compared to 2019, almost 7 times each year, 31.6% of respondents used e-commerce.

The largest e-commerce users have been noted to be South Korea and China. China and South Korea have utilization rates of 88.8% and 87.1%, respectively, while Western Europe is said to have a usage rate of about 35%.

The internet was cited as a key resource by 50% of survey participants who stated they actively look for information on the food they are consuming.

Consumers have found great success with apps that analyze food labels. The accompanying information that customers find important when making a purchase is now the main focus rather than just the product itself. Because of this, brands and merchants have modified their on-pack labeling to include supply, source, and quality of ingredients information.

Consumers are expected to receive as much information as possible about the supply chain in the future, with production and animal conditions being prominently featured in product branding.