The shining light in the stagnant grocery sector is online, as Nielsen details growth in the sale of pet supplies and health and beauty-related products.
Nielsen’s Syndicated Grocery E-Commerce Report for Q3 2018 has compared the growth in online grocery sales (39.7 percent) to bricks-and-mortar grocery sales, which has only seen 2.7 percent growth in the same quarter.
Interestingly, 21.6 percent of the online growth recorded for the period came from households (448,000, to be exact) making online grocery purchases for the first time. What does this mean? All signs are pointing towards a profitable future for the Aussie online FMCG sector. This is particularly the case in two key product categories; pet supplies and health and beauty.
According to the report by Nielsen, new online shoppers spent 12 percent of their total digital spend on pet supplies, while existing online shoppers only spent an estimated 6.8 percent of their average spend on pet products. In the 26 weeks ending October 6, 2018, new online buyers reportedly spent an average of $72.39 on products for their furry and feathery friends.
This digital category growth could be further accentuated by Amazon’s introduction of ‘Amazon Pet Supplies’ in September 2018.
Health and beauty products, however, saw even more growth in the last six months. Nielsen has reported that 14.6 percent of new online shoppers allocated $41.09 to health and beauty products through an average of 1.5 purchases. In comparison, the average online grocery shopper only allocated 8.3 percent of their total spend on health and beauty goods.
Looking outside of Australia, shoppers in the US have also shown a propensity to purchase pet supplies online. Nielsen’s research revealed that relative to a mere five percent growth in the sale of offline pet consumables, online purchases jumped by a staggering 53 percent.