Adapt or fail is one message food and drink makers can take from the increasingly booming food ‘last-mile’ grocery delivery trend.
Unlike the rapid delivery movement, which barely survived the end of the Covid-19 pandemic, standard delivery for FMCG has continued to gain strength.
The global FMCG logistics market was been valued at €99.8bn ($111bn) in 2023 and grew another €3bn in 12 months. By 2032, the market is predicted to balloon to €141bn ($157bn), according to Fortune Business Insights.
It’s this pace that Ricardo Amorim, chief revenue officer at white label delivery firm Stuart, says manufacturers should mind when developing future business plans.
A world of food delivery
“If we take a step back and think about new restaurants opening, one of the things they have to think about now is delivery,” he explains.
“For grocers and FMCG, I think it’s the same. The end delivery element should be considered, especially when you think about the future of a business – you need to have that in mind because a business in the future isn’t going to work without delivery."
Within this, packaging, including its makeup and structure will be vital. Food and drink makers will have to make sure their products take in mind consumers’ sustainability needs, as well as brand expectations.
“If the experience is bad because the packaging doesn’t take care of the product, then the experience won’t be good,” he explains.
More growth in delivery
Amorim also believes there is significantly more growth left in last-mile delivery, meaning retailers must begin planning to incorporate delivery more deeply into operations.
Many big grocers had already moved fast on the concept, employing various ways of feeding consumers’ delivery needs. However, others hadn’t and that was putting the future at risk as more consumers turn to delivery.
“The market is very different now to what it was a couple of years ago and grocers know what needs to happen and they need to be in the space, but also in a sustainable way. It is – or should be – in their business plans," argues Amorim.
“It’s almost double-digit growth and delivery will be there in the future, it needs to work for retailers because it’s going to bring a lot of positive things for them, but also their customers, the consumer.”
