Data Analytics Leader Reveals Online Sales Increase 42 Percent in Key CPG Categories
NEW YORK – September 1, 2016 -- 1010data, Inc., offering the only integrated platform that combines self-service data management and analytics at scale with ready-to-use data, today announced results of its most recent study of the Consumer Packaged Goods (CPG) market, revealing strong online sales for key categories within the sector. Findings from 1010data Market Insights show that when compared to the first half of 2015, CPG online sales grew 42 percent across key categories in the first half of 2016. If present trends continue, 1010data estimates that online sales in the U.S. will surpass $10 billion for these categories for the first time in history.
Given recent high-profile events like Unilever’s $1 billion acquisition of Dollar Shave Club, 1010data wanted to learn more about how traditional CPG companies are coming to terms with new online competitors, as well as to examine how legacy manufacturers of consumer goods were faring in terms of in-store versus online sales. Overall, 1010data Market Insights points to a significant shift towards online shopping, from $5 billion in 2014 to $7 billion in 2015 and to this year’s projected $10 billion in e-commerce revenue for key categories in the CPG sector. 1010data further shows that consumers’ in-store spending is flat and nearly all of the modest 4% annual growth in consumer spending is happening from growth in e-commerce.
In terms of category sales and growth, 1010data’s results show that the Health Supplements and Pet Care categories are the largest in terms of overall revenue. The Health Supplements category has already surpassed $1 billion in online sales, and Pet Care is over $700 million. In addition, Pet Care is the fastest growing category in CPG among categories with at least $200 million in annual online sales. And while smaller at approximately $40 million, Laundry & Dish is the fastest growing category overall.
Analyzing individual brands’ sales and growth also provides insight into where and how traditional CPG companies are winning or losing online. In the Health Supplements category, 1010data Market Insights shows that protein supplement maker Optimum Nutrition leads in total single-brand sales. Evlution Nutrition, a newer and rapidly growing brand that sells a majority of its product via the bodybuilding.com website, is the fastest growing brand so far in 2016. Half of the top 20 best-selling online brands are in the Pet Care category, and Blue Buffalo leads the pack in online sales. Across the entire CPG sector, online upstarts are staking their claim. For example, in the online hair-loss shampoo market, Pura D’or owns a 17% percent market share, beating out household names like Rogaine, Nioxin, and Kirkland.
“Our data shows that online challengers are making a big impression in their market segments because e-commerce helps them achieve massive growth without the high up-front costs that traditional CPG companies must incur in marketing, distribution and product visibility at brick-and-mortar stores,” commented Natalie Seidman, SVP of Data Insights at 1010data. The findings indicate that CPGs that want to stay competitive need to get a sense of how consumers shop online, what levers a brand has to increase sales, and where marketing and product resources are best allocated. Seidman added, “Leveraging e-commerce insights can enable CPG brands to better compete in the rapidly evolving online shopping world, their primary opportunity for revenue growth in U.S.”
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Using 1010data’s E-commerce Insights data from a panel of millions of consumers, 1010data analyzed top product categories across the CPG sector, including: Health Supplements, Pet Care, Facial Care, Cosmetics, Drinks, Baby, Hair Care, Health OTC, Oral Care, Cleaners, Shaving, Hand Body, Laundry & Dish, and Sun Care. 1010data used its own technology to track consumer behavior by sourcing, cleansing and consolidating high-quality, granular datasets from a number of sources of consumer spending data representing millions of consumers in order to provide an accurate assessment of online and offline retail sales, market share and more.
Gaining actionable insight requires the best analytical tools and access to all relevant data. 1010data is a complete solution that provides both. We provide the only out-of-the-box, self-service, cross-enterprise insights platform. More than 750 of the world’s largest companies trust 1010data to manage, share and analyze over 27 trillion rows of data because of our proven ability to deliver results more quickly, easily and accurately than any other solution. Please visit www.1010data.com for more information.