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FINEST FOOD STORIES



THE RISE OF GOURMET E-COMMERCE: WHAT YOU NEED TO KNOW TO STAY AHEAD

The future of gourmet, artisan, and fine foods retail lies in balancing
tradition and innovation - consumers still love the traditional feel of artisan
food and drink, but their shopping patterns have changed significantly

Since Covid-19 first hit, the global e-commerce market has broken record after
record – it is no longer necessary for consumers to touch and feel their
groceries before purchasing them. The e-commerce F&B industry is experiencing
rapid growth, with research estimating it to reach US$ 71.62 billion by 2028,
with a compound annual growth rate of 17.8%. In MENA alone, food delivery is one
of the leading categories in the e-commerce market with annual market size of
US$ 834 million. Several factors are driving this steep upward trajectory,
including a sweeping shift in consumer habits towards online grocery shopping,
ready-to-eat food delivery, and a growing interest in healthy sustainable food.

A growing opportunity exists for niche, gourmet, and novelty food ingredients,
according to Fi Global Insights, as online meal kit services such as HelloFresh,
Marley Spoon, and Gousto are delivering meal plans, recipe guidance, and
ingredients directly to consumers. It is estimated that the global specialty
foods market will reach $224.88 billion in 2026 at a compound annual growth rate
of 7.2%.

 

Indeed, these types of services are among the e-commerce companies that have
attracted investors recently. For example, a leading online grocery marketplace
operating in the UAE, elGrocer, has been acquired by Etisalat Group, an Emirates
Telecommunications Group Company. With more than 500 stores and 120,000 products
listed, the platform combines major retailers and specialty stores.

By 2025, the e-commerce sector is expected to be the new source of growth in
retail, exceeding $50 billion in sales. According to Mintel's David Browne,
senior analyst at the Winter Fancy Food Show held last year, e-commerce, which
represents 2% of the specialty food retail market at $3 billion in sales, is a
significant contributor to this industry


LONG-TERM CONSEQUENCES OF COVID-19

In the wake of the pandemic, consumers around the world turned to their smart
devices for everything from groceries to clothing, causing a seismic shift in
consumer spending habits.

In the Middle East specifically, there were promising indications that the shift
to online has had a prodigious effect: Instashop has seen a 70% increase in app
downloads, a 53% increase in orders, and an average basket value increase of
70%.

According to Noon, 2,500 retailers are actively pursuing e-commerce
capabilities, making the future promising.

Similarly, elGrocer, a Dubai-based grocery delivery company, researched to prove
that consumers continue to shop online due to a fear of contracting Covid-19 and
for time efficiency purposes. This is still evident two years later that
e-commerce is continuing to gain traction despite Covid-19 being under control.


THESE ARE SOME E-COMMERCE TRENDS AND OPPORTUNITIES GOURMET & FINE FOOD RETAILERS
CAN LEVERAGE:

Sustainability, Ethics, and Transparency

Consumers are more conscious of the impact of their purchasing habits than ever
before. There is a growing awareness of sustainability when shopping online and
many consumers are looking for ways to conserve the planet’s resources.
According to a study done by Mintel 2021, when it comes to shopping online, up
to 84% of respondents said they would more likely to shop with an online
retailer that has made a clear commitment to sustainability.

Because of the long-lasting legacy created by the pandemic, retailers may be
able to meet the growing customer desire for sustainable shopping if they source
food locally to support regional producers and minimize food transport miles.

Transparency and ethical selling can take many forms in this industry. It
requires providing a full and detailed list of ingredients and information on
where they are sourced from.

A great example of this is Sasha’s Fine Food company, Singapore's gourmet online
grocer which helps customers make better sustainable food choices. Pioneering in
sourcing food closest to its natural state, Sasha's Fine Foods ensures the
end-to-end supply chain is as eco-friendly as possible.

Being sustainable, ethical, and transparent provides differentiation and can
lead to higher margin product ranges. Additionally, retailers would benefit from
reduced supply chain risk and costs by shortening the supply chain.

Subscription and Fast Shipping Deliveries

Having a super-fast delivery service is a must for any online business,
especially when selling gourmet and fine foods. Same-day delivery methods like
Talabat, UberEats, Deliveroo, and Instacart have raised customer expectations
for seamless delivery.

Likewise, there is a growing trend in the F&B industry to offer curated or
replenishment subscriptions - in fact, subscription enrollment jumped 48% in
2020, with a 25% increase in food and beverage subscriptions alone. A
significant change in consumer behavior has emerged with the rise of food
subscriptions, with shoppers looking for convenient, reliable, and most
importantly safe ways to restock their pantries and try new products and brands.

Telling A Story

In today's F&B marketplace, consumers are dissecting the story behind their
purchases more than ever, so much so that the journey an item takes before it
reaches them is even more important than its actual content. Leveraging on this
is crucial for any business trying to convey a positive story to the customer
and there’s never been an easier way to do so than different formats given by
e-commerce tools.

For instance, Christophe Barrett, CEO of Classic Fine Foods (CFF) and food
sourcing specialist, says that provenance is everything for their products. CFF
helps food industry operators tell their stories to customers. A great way for
those in the gourmet and fine food industry to spread the word about their
brand, build relationships, and develop loyal customers is indeed through online
tools.

While it is difficult to predict with any certainty what future twists and turns
will await the market, e-commerce is likely to remain high, albeit at lower
levels than at the peak of the pandemic. According to Ciaran Bollard, CEO of
e-commerce platform Kooomo, online sales will indeed dip, but "e-commerce is
undoubtedly here to stay.".

An underlying theme linking all of these trends and aspects is one of the most
compelling recent phenomena: the rapid rise of digital technology and the dawn
of a new era in which multi-channel systems and presences on social media have
become increasingly essential to business today. A hybrid environment that
combines physical and digital environments, i.e. an in-store experience along
with online sales through e-commerce platforms, has also become increasingly
commonplace.

With the growth in this market comes an increase in competition, which means
that companies need to be sure their products stand out from the crowd. Stay
ahead of the curve. Attend The Speciality Food Festival on November 8-10 at
Dubai World Trade Centre to discover the latest trends, innovations, and
solutions in the industry.

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Tuesday 08 November 2022: 10am - 6pm

Wednesday 09 November 2022: 10am - 6pm

Thursday 10 November 2022: 10am - 5pm

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