Recent analysis by market research firm Insider Intelligence has revealed that the fastest-growing sales category in e-commerce is foods and drinks. The market researcher predicts that the food and drink e-commerce segment will expand by 20% in 2023 to reach $99.70 billion in sales and account for 8.8% of total e-commerce sales in the United States.
According to Insider Intelligence, the food and drinks segment will comprise up to 10% of America’s total e-commerce sales by the year 2026. Insider Intelligence forecasting analyst Whitney Birdsall explains that inflation is partly responsible for the growth of the food and drinks sales category from mid-2022.
But while sales in the food and beverages segment are still strong, Birdsall says, easing inflation coupled with the exhaustion of emergency SNAP allotments will likely dampen the segment’s growth.
Food and beverages are also facing stiff competition from the health, beauty and personal care segment, which is poised to become the fastest-growing e-commerce segment in the country. Currently ranked as the second-fastest growing, this segment comprises over-the-counter goods including vitamins, supplements, medicines, pet products, baby products, toiletries, and personal care and hygiene products.
Insider Intelligence predicts that e-commerce sales in the health, beauty, and personal care segment will grow by 18% to reach $130.5 billion in sales this year. Furthermore, the segment will eventually surpass food and beverages as the fastest-growing e-commerce segment in 2024, Industry Intelligence says, growing by another 17.5% while food and drinks grow by 17.0%.
The research firm adds that the segment can expect double-digit growth until it achieves $200 billion in e-commerce sales in 2026, mostly thanks to increased consumer demand for online shopping because of the ease and convenience it offers.
E-commerce has been a major component of trade in the U.S. and across the globe for decades, allowing businesses to reach a significantly larger market while giving consumers access to goods and services they normally couldn’t obtain.
The coronavirus pandemic was a boon for online trade as it forced many industries to either shut down or adopt commerce features such as online orders and home deliveries to remain profitable. Even though the U.S. long abandoned strict lockdown orders, millions of consumers across the country have become accustomed to the convenience of online shopping.
Insider Intelligence expects total e-commerce sales in America to increase by 9.3% in 2023 to $1.137 trillion and account for 15.6% of overall retail sales in the country by the end of the year.
For companies that have a presence in the healthcare e-commerce space, such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW), the projected growth could enable them to deliver greater value to their shareholders.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL) are available in the company’s newsroom at https://ibn.fm/NXPL
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