NEW YORK--(EON: Enhanced Online News)--1010data, Inc., the only integrated platform that combines self-service data management and analytics at scale with ready-to-use data, today announced the results of its 2016 Online Consumer Packaged Goods (CPG) Industry Report. For the first time since 1010data began tracking this market, online CPG sales across key categories surpassed $10 billion. Of the CPG categories tracked by 1010data, the largest ones were health supplements, pet care and cosmetics, each of which generated more than $1 billion in sales.
“All CPG brands need to understand how consumers are shopping in their categories and consider how ecommerce can help deliver a better experience and complement in-store sales.”
Total revenue for key CPG categories in 2016 was $10.4 billion, up from $7.6 billion in 2015. The 2016 data showed a nearly even split in revenue between the first and second halves of the year, implying that consumers are buying CPG products online year-round and not just during the holiday season. Key findings from 1010data’s report include:
- Health Supplements Was the Biggest Online CPG Category – With $2.6 billion in sales, health supplements represented 25 percent of total key CPG category sales and exceeded the size of the next biggest category by $1 billion.
- Pet Care Grew 67 Percent Year Over Year – Pet care was the fastest-growing category among categories with at least $500 million in sales. Driven by specialty pet care sites with brands like Chewy and Drs. Foster & Smith, “natural” products experienced the most growth.
- Laundry & Dish and Cleaners Continued Growing Due to Pantry Box and Subscription Models – Of categories with less than $500M in sales, laundry & dish and cleaners experienced the most growth, because pantry box and subscription options from companies like Amazon, Boxed and Jet have enabled customers to conveniently order and re-order products.
1010data’s report also notes that online CPG sales across key categories grew twice as fast as total ecommerce sales, which had a 16 percent year over year growth rate in 2016. Increasingly, more online retailers are offering two-day shipping and subscription services, which is driving the acceleration in CPG sales growth.
By analyzing top search terms, 1010data found that most consumers who buy CPG products online started their search on Amazon. The top search term on-site across all CPG ecommerce sites was “prime pantry,” powerfully demonstrating the mass appeal of subscription services online.
“With CPG sales hitting $10 billion in sales online across key categories, online ecommerce is clearly no longer an afterthought for brands,” said Jed Alpert, Senior Vice President of Marketing at 1010data. “All CPG brands need to understand how consumers are shopping in their categories and consider how ecommerce can help deliver a better experience and complement in-store sales.”
For a free download of the full report, please click here.
About the Study
Throughout 2016, 1010data tracked numerous sources of spending data, representing millions of consumers, to provide an accurate assessment of online and offline retail sales and market share. 1010data focused its research on key CPG categories: health supplements, pet care, facial care, cosmetics, drinks, snacks, baby, hair care, health over-the-counter (OTC), oral care, cleaners, shaving, hand body, laundry & dish, and sun care.
Gaining actionable insight requires the best analytical tools and access to all relevant data. 1010data is a complete solution that provides both. Ours is the only out-of-the-box, self-service, cross-enterprise insights platform. More than 850 of the world’s largest companies trust 1010data to manage, share and analyze over 34 trillion rows of data because of our proven ability to deliver results more quickly, easily and accurately than any other solution. Please visit www.1010data.com for more information.