Diminishing Shelf Space Drives CPG Companies To Try Online Innovation

Manufacturers of food, drink, beauty, and personal care products are losing store shelf space thanks to the rise of own-brand discount supermarket chains like Aldi and Lidl, and smaller stores that sell independent brands. To meet the challenge, manufacturers – Reckitt Benckiser, Nestlé, Diageo, Unilever, etc. – are increasingly focusing on e-commerce, selling through e-tail websites. But they are also experimenting with delivery-on-demand and subscription-based models. It’s a rising trend: online shoppers globally spent $87 billion on CPG items last year, nine percent of the total online spend. Twenty-five percent of people in 60 countries in 2015 ordered grocery products online for home delivery. Fifty-five percent said they would do so in the future.