SberIndex: e-grocery and foodtech markets booming and showing great potential
SberIndex analysts have released an online market review covering e-grocery and foodtech spending. These markets saw considerable growth during the first wave of the pandemic, and after that buyers kept using online channels, having appreciated their upsides. Growth was spotted in big cities, outside of which the potential is just being unlocked.
SberIndex analysts are highlighting the fact that the companies with online sales in their business model had gone through the pandemic much better. This channel secured some 10% of additional revenue, whereas offline businesses suffered the pandemic blow even in the food segment, which survived the barrier gestures relatively well.
In 1Q21, e-grocery and foodtech markets in Russia surged by 78% y-o-y to reach RUB 155 bn.
The growth rate of online spending across food stores equaled that of restaurants, but the turnover measured in food products was nearly 2.5x higher, standing at RUB 108.9 bn vs. RUB 46.1 bn in 1Q21.
The quick adaptation of business models and the opening of online sales channels during the pandemic resulted in approximately 10% additional revenue for food service providers and food retailers.
The share of online purchases is climbing fast in all parts of Russia. In 1Q21, online orders in restaurants grew to 11.9% from 6.6%; in grocery stores the metric rose to 2.9% from 1.7%.
SberIndex analysts claim the Grocery Stores category saw online purchases booming only in 2H20 rather than during the first wave of COVID-19 in April and May 2020.
Moscow and St. Petersburg unsurprisingly emerged as 1Q21 leaders with the highest share of online spending across restaurants and grocery stores, with Moscow accounting for nearly 60% of online purchases.
Nizhny Novgorod Region has the third biggest share of online purchases in restaurants (12.9%), while the Republic of Tatarstan ranked third by the share of funds people spent on groceries online (3.4%).
Despite the fast general increase, online spending on food is above the country’s average in only eight parts of Russia, while in three regions online spending is higher in grocery stores. The high density of such services in a limited number of cities suggests online sales have a great growth potential across Russia’s regional markets.
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