Digitisation of food and CPG space has only just begun, IGD

Online food and grocery sales will grow by 163% by 2023 across major global markets, and digital technologies will feature prominently, according to IGD and The Consumer Goods Forum.

Asia and North America will lead the way here, with Europe set to develop this channel at a comparatively slower pace. Susan Barratt, CEO at IGD, says: “We are living in exceptional times, with an extraordinary burst of retail innovation, driven largely by digital developments. We believe that plenty of the new emerging models are set to grow and prosper, which means established retailers will need to work hard and swiftly, either to limit their impact or to emulate them. The digitisation of the food and CPG industry has already disrupted and transformed the industry, yet the story has only just begun.”

IGD predicts that:

Technology-led strategic partnerships will accelerate rapidly. Technology companies will have a much stronger influence on CPG retailing
Advanced digital technology will help physical stores close the data gap on pureplays
The commercial trading interface between established retailers and suppliers will be transformed by AI
The most advanced traditional retailers will diversify to become less reliant on selling products
Retailers with the best data capabilities will win in the long-term by becoming incrementally better every single day.