The widespread use of the Internet has changed how people live, and shopping online has become a new norm. Since 2019, the COVID-19 pandemic drastically restricted consumers’ access to physical stores, which in turn made e-commerce not only popular, but essential.

According to United Nations Conference on Trade and Development’s (UNCTAD) new figures show the average share of internet users who made online purchases increased from 53% in 2019 to 60% in 2020/2021. The United Arab Emirates and Uzbekistan had the greatest rise in the share of internet users who shopped online; the figure more than doubled. Other countries such as Greece, Ireland, Hungary, and Romania also had more than a 15% increase. According to Morgan Stanley’s predictions, Southeast Asia and Latin America are the emerging markets that will rise 17% to 20% in the next 5 years.

As the pandemic restrictions ease around the globe, the general growth of eCommerce has somewhat slowed. However, many consumers have embraced and even become dependent on the convenience of online shopping. In 2020, the retail eCommerce sales worldwide reached $4.24 trillion USD, and that number is estimated to rise to $7.39 trillion USD by the year 2025. China and the United States combined generated more than 70% of the global eCommerce sales that reached above $3.6 trillion USD in 2021.

Food is one of the fastest growing product categories in eCommerce increasing at a rate of 58.5% during 2020. According to Statista, the food industry is estimated to generate approximately $26 billion USD in 2022. With great opportunities ahead, the food industry still faces many fundamental challenges regarding storage, shelf life, food safety, and various other regulatory restrictions. It is important to have a thorough understanding of recent food trends and provide what the consumers desire.

1. Online grocery shopping websites and food ordering apps are becoming more competitive, and fast delivery has become a key to success. According to statistics, more than 88% of consumers are willing to pay more for same-day food delivery, which makes food logistics, and cold chain supply management a crucial part of the business.

2. Due to an emphasis on Social Responsibility, health, and information transparency, providing accurate product information also becomes a priority. Striving for a production process that is in line with sustainability, human rights, and food safety standards also can determine a brand’s success.

3. Social media marketing: A study found that two-thirds of consumers tend to do product research on social media as part of their shopping strategy. YouTube is the most often used platform, followed by Facebook, Instagram and TikTok. Having the ability to use multimedia for commerce is a challenge, but also creates business opportunities.(Data Source)

4. Personalized and handcrafted food products are popular: “Handmade” food products are often associated with a healthy and authentic dining experience. Food can be a medium for communicating emotions; and sometimes we have the cravings for comfort foods such as a handmade Empanadas, Meat Buns, Meatballs or Samosas when interactions on the internet become too artificial. According to Innova Market Insight, during the past few years, the artisanal food product sector has experienced significant growth globally.

5. Cross Consumption and Omnichannel Operations: Creating a seamless connection within and between online communities, physical retail stores, and eCommerce can promote products through contextual marketing online and can also drive interest in related products. This creates a greater and wide variety of business opportunities for the food industry that previously has not existed.

With the advancement of eCommerce business in sales and marketing, food producers can further focus on their product development and identify their market differentiation. ANKO supplies a full range of automated food processing equipment to create professional and highly efficient food production facilities, from individually owned restaurants, central kitchens, to frozen food factories. ANKO can assist our clients to increase their food production capacity. ANKO also specializes in new product development, packaging, and product line expansion as well as implementation services to help our clients create and launch great new food products.

The Food Industry is closely associated with our daily lives, and new technology is rapidly impacting the consumer market in many ways. The online food market offers tremendous opportunities as well as many new challenges. ANKO provides the best food processing equipment that can help you with commercial food production, and solutions that offer you in-depth market insights based on our extensive experience.