A recent report by Allied Market Research projects that the FMCG B2B e-commerce market will reach a value of $1220.5 billion by 2031, growing at a compound annual growth rate (CAGR) of 9% from 2021 to 2031.
This forecast underscores the substantial growth potential within the FMCG sector as it increasingly incorporates e-commerce platforms.
The FMCG industry, known for its diversity and sensitivity to market shifts and consumer demand, is experiencing significant value addition through e-commerce integration. FMCG B2B e-commerce platforms facilitate direct transactions between sellers and buyers, eliminating middlemen and thereby reducing costs. The digitisation of the FMCG B2B business contributes to market sustainability and creates numerous opportunities globally.
The incorporation of technologies such as AI and IoT in B2B e-commerce is a notable trend, enhancing transaction efficiency as well as business longevity.
Supply Chain Optimisation and Digital Innovation
The offline retailers segment is expected to grow at a CAGR of 9.7% during the forecast period, driven by increased digitalisation in B2B commerce, which simplifies the transaction process and propels market demand. In 2021, Asia-Pacific held the largest market share, accounting for nearly two-fifths of the global FMCG B2B e-commerce market.
This region is also anticipated to witness the fastest CAGR of 9.6% from 2022 to 2031, attributed to rising spending capabilities, widespread manufacturing units, and the prevalence of various B2B e-commerce sites offering diverse products. The expansion of enterprises and technological development in developing economies is also bolstering this growth.
Optimising supply chains and utilising cost-effective resources and tailored logistics are key factors driving development within the FMCG B2B e-commerce market. As the customer base evolves, there is an increasing need to meet FMCG product demand through B2B companies. Digital innovation will be playing a crucial role in the expansion of B2B businesses globally within the FMCG sector, facilitating a transition towards e-commerce that promises significant potential for market growth.
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