FMCG B2B e-Commerce Market Expected to Reach $1220.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “FMCG B2B e-Commerce Market," The fmcg b2b e-commerce market was valued at $520.80 billion in 2021, and is estimated to reach $1220.5 billion by 2031, growing at a CAGR of 9% from 2022 to 2031.

An FMCG B2B e-commerce is an online platform that assists innumerable sellers and countless B2B buyers to e-commerce FMCG products. In addition, FMCG is one of the diverse industries driven by market shifts, price sensitivity, and consumer demand. Incorporating e-commerce in this industry has added value to the B2B business and is expected to have huge growth during the FMCG B2B e-Commerce market forecast period.

The FMCG B2B e-commerce industry has witnessed a notable growth in past few years, owing to increase in the trend of commerce through mobile phones. Surge in number of mobile users across the globe has boost FMCG B2B e-commerce market growth across various industries. Growth in the sales of FMCG products through B2B e-commerce is attributed to seamless trading experiences between businesses.

In addition, growth of digitization in the FMCG B2B e-commerce business leads to sustainability in the market and creates huge FMCG B2B e-commerce market opportunities across the globe. This is attributed to the reason that involvement of online practice across the globe in B2B business has promoted direct trading between buyers and sellers without the engagement of middlemen in the marketplace. Also, incorporating AI and IOT in B2B e-commerce is on of the FMCG B2B e-commerce market trends across the globe. Moreover, transaction through an online platform directly to product sellers and reduces the cost of the actual product, which aids to sustain business in the long run.

Shift in buying patterns of consumers have led to increase in demand for products in the personal care and cosmetic segment in the market. Associating voice search features in shopping help numerous B2B players to retain B2B customers in the market.

The FMCG B2B e-commerce market is segmented on the basis of product type, end user, and region. On the basis of product type, the market is categorized into home care, foods & beverages, personal care & cosmetics, healthcare, and others. On the basis of home care, the market is further divided into cleaning products, fragrance, and others. On the basis of food & beverages, it is segmented into bottled water, juices & drinks, tea & coffee, fresh food, frozen food, processed & packaged food, and others. By personal care & cosmetics, the market is divided into body care, hair care, oral care, skincare, and baby care. On the basis of healthcare, it is bifurcated into over-the-counter (OTC), vitamin & dietary supplements, feminine care, and others. The others segment is categorized into pet food and stationery.

On the basis of end user, the market is divided into offline retailers, distributers, food service, specialty stores, hypermarkets/supermarkets, and others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, the Netherlands, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, the UAE, Argentina, and Rest of LAMEA).

On the basis of product type, the personal care and cosmetic segment was valued at $141.5 billion in 2021, and is expected to reach $351.6 billion by 2031 at a CAGR of 9.6%. This is majorly attributed to factors such as associating personalized experience in a wide range of cosmetic products such as eye liners, lipsticks, and nail paints through digital innovation, which boosts demand for market.

On the basis of end users, the FMCG B2B e-commerce for offline retailers is expected to grow at a CAGR of 9.7% during the forecast period. The offline retailers segment shares largest revenue in this segment, owing to increase in prevalence of digitalization in B2B business making the commerce of products a seamless experience likely to propel the demand in the market.

Asia-Pacific dominated the FMCG B2B e-commerce market share and is projected to continue this trend during the forecast period. This is majorly attributed to rapid development toward technology and digitalization to enhance business in the FMCG B2B e-commerce market. Moreover, Asia-Pacific is predicted to have the most promising growth rate, owing to enormous untapped opportunity for businesses in the market.

During the COVID-19 pandemic, supply chain disruption was a major issue for manufacturers, as countries closed their borders or raised trade barriers. As a result, manufacturers and exporters faced fierce competition to sell their products abroad. Meanwhile, adoption of e-commerce by B2B players in FMCG has gained high traction during the period. Furthermore, the pandemic across the globe has a positive impact on the market, owing to various factors such as home delivery facilities, huge offers, and discounts on the online platform.

Key market strategies implemented by market players include product launches and geographic expansion aids in FMCG B2B e-commerce market analysis. Product innovation is being prioritized by prominent market players to provide consumers with more innovative products. Key players in the global FMCG B2B e-commerce market include Alibaba Group, Amazon, Americanas, Ebay, Global Sources, Indiamart, kroger Co., Quill, Rakuten, and Walmart. Other prominent players in the market are EC21, Exporters india, Costco Wholesale Corporation, The Home Depot, Chewy inc, and Animal supply company.

Key findings of the study

• The global FMCG B2B e-Commerce market size was valued at $520.8 billion in 2021, and is projected to reach $1,220.5 billion by 2031, registering a CAGR of 9.0% from 2021 to 2031.
• By product type, the personal care & cosmetic segment was the highest contributor to the market, with $298.1 billion in 2021, and is estimated to reach $492.7 billion by 2031, at a CAGR of 5.2% during the forecast period.
• By end user, the offline retailer segment was the highest contributor to the market, with $147.4 billion in 2021, and is estimated to reach $371.2 billion by 2031, at a CAGR of 9.7% during the forecast period.
• By region, Asia-Pacific was the highest revenue contributor, accounting for $192.7 billion in 2021, and is estimated to reach $477.2 billion by 2031, with a CAGR of 9.6%.