Food and Drink E-Commerce in New Zealand

2020 IMPACT

Online grocery shopping helps register significant growth for channel

Food and drink e-commerce registered double-digit growth in 2020, especially since COVID-19 was a significant trial driver for new consumers who had not made purchases online before. In the early phases of 2020, with strict lockdown restrictions and consumer fears of contracting the virus, consumers flocked to stockpile pantry essentials in preparation of potential lockdowns due to uncertainty surrounding the pandemic.

Limited capacity and capabilities create challenges, as players invest in building their services to better suit consumer needs

Food and drink e-commerce recorded a strong growth in 2020, which helped boost sales significantly following the effects of the pandemic on consumer lifestyles and shopping preferences. Despite the strong surge in sales, the unprecedented demand made it challenging for businesses to deliver to consumers due to limited capacities and capabilities.

COVID-19 pushes retailers to build omnichannel strategies and capabilities

The surge in e-commerce and increase in New Zealanders shopping online has led to significant growth in the category, with COVID-19 being the driver pushing consumers to try this new way of making purchases from the comfort and safety of their own homes. Food and drinks e-commerce is expected to grow strongly over the forecast period, as supermarket chains such as Countdown and Foodstuffs have experienced massive spikes in new customers doing their shopping online, and this shift in channel preference is expected to bring about a longer-term change in consumer shopping behaviour.

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