Online spending on consumer packaged goods (CPG) mirrored the general state of the economy in 2018.
According to the Q4 2018 Consumer Connect survey from predictive analytics data provider IRI, consumers at the close of 2018 were buoyed by strong household financial health and were spending online accordingly. The survey reports that nearly 55 percent of consumers said their households were in good financial shape in Q4 2018, up 4 percent from Q3 2018 and 2 percent from Q4 2017.
E-commerce sales in particular grew with rising levels of household financial confidence. IRI data reveal that e-commerce sales reached $58.9 billion in 2018, up 35.4 percent from the prior 52-week period. This only accounted for 11 percent of total CPG retail sales, but e-commerce represented 64 percent of omnichannel growth in the CPG sector.
IRI E-Market Insights reports that vitamins, pet food and supplies, and skin care products are the top-selling online CPG items. IRI E-Market Insights also finds that gastrointestinal and adult incontinence products are among the largest e-commerce growth categories. While fresh and frozen items rank among the bottom of e-commerce CPG sales categories, IRI analysis finds signs of significant growth.
To read survey results, click here.