The share of online grocery shopping is accelerating globally, and it is impacting consumer behaviour and expectations in terms of convenience, speed, experience and personalisation.
The high growth-rate makes the channel a priority for retailers and suppliers. For them, leveraging this retail channel efficiently will require a new set of skills and capabilities. This can include reconfiguring the brand, pack, product, differentiation, and distribution strategy for the online world.
The growth of online grocery retail will lead to greater packaging complexity in the channel, which will in turn stimulate packaging innovation. It is important to have different pack sizes and package features, as these will affect distribution efficiencies. The focus will be on driving efficiencies in the supply chain through package weight reduction, more efficient distribution solutions or pallet optimisation (just to mention some), to prevent loss and damages and reduce costs.
One key aspect of this channel is that the intensifying pressure on margins creates a critical need for retailers to differentiate their offerings. They also need to stand apart in-store and online. Packaging, particularly slimmer and taller packages, is one area in which they can achieve this differentiation. These types of packages immediately draw the eyes and create an elegant and attractive look on the shelf and on the website. They also provide a broad surface for brand expression, giving retailers ample opportunity to express their brands.