Food and drink e-commerce received a fuel injection from the 2020 lockdowns and is continuing to register healthy value sales. Grocery retailers have upped their game and are continually developing the online infrastructure.
Leading supermarkets chains are investing in distribution centres, as rapid delivery is a key way of improving the customer experience. At the end of 2020, Dia opened two distribution centres and also offers delivery through the Glovo and OrdensYa delivery platforms.
The supermarket shelves law was enacted in 2020 in physical stores, with among other regulations, that there must be at least five different suppliers for each product and no one product can exceed 30% of the display space. In September 2021, the government also introduced measures for online display with stipulations such as that the cheaper product must be listed first, in price per unit.
Although food and drink e-commerce has seen some of the strongest online growths in recent years, before the onset of the pandemic, food and drink e-commerce was still in a relatively early stage of development, with many local consumers preferring to visit physical stores for these products. In addition, food and drink delivery, notably dairy, frozen or refrigerated products, is much more complex than for other products, and hypermarkets and supermarkets offered delivery options in very limited areas.
Food and drink e-commerce will continue expanding over the forecast period, with new players and new apps. One new player that is eagerly anticipated is Speed 365 from Cencosud, with the company investing US$160 million in the new operation.
Mercado Libre has a finger in many pies such as payments and e-commerce through its online marketplace and in 2020, it also launched Supermercado Libre, an online marketplace for groceries. The online supermarket offers generous discounts and rapid delivery.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).See All of Our Definitions
This report originates from Passport, our Food and Drink Internet Retailing research and analysis database.
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