In 2024, the Italian online Food & Grocery market reached a value of 4.6 billion euros, marking a 6.2% growth compared to the previous year. This highlights how e-commerce is assuming an increasingly central role in the food distribution sector, thanks also to a growing number of e-shoppers who choose to buy food and beverages online. In 2024, 27.1% of Italians made online purchases, showing an 8.8% growth compared to the previous year (source: Netcomm NetRetail Focus Food research).
Driving Factors of Online Purchases
The data shows that Italian digital consumers are particularly attracted to convenience and ease in the online shopping experience.
It should be noted that Food is the only product category where price is not among the top five purchase drivers for digital consumers: it is therefore not “convenience” understood as cost reduction that is the key factor, but rather efficiency, and therefore savings in terms of timing and the variety of options and services related to delivery. Other important factors are economical delivery, assortment, and habit.
Among the main purchase drivers for the Food & Grocery sector in 2024, we find:
- Reduced delivery costs (30.8%): The containment of shipping costs continues to be a determining element for choosing the e-commerce channel.
- Efficiency in delivery services (25.4%): Speed and reliability in delivery are fundamental to ensuring customer satisfaction.
- Simplicity and agility in the shopping experience (25.1%): The ease of use of e-commerce platforms is essential for conquering and maintaining customer loyalty.
Overview of the Spice and Herb Extracts Sector
Source: https://www.mordorintelligence.it/industry-reports/spice-and-herb-extracts-market
Within the Food & Grocery sector, the spice and herb extracts and seasonings segment presents itself as very competitive, with a significant presence of numerous global and regional players. The main players in the global spice and herb extracts market are investing in research and development and initiating mergers and acquisitions to improve their product portfolios to provide consumers with a complete range of bold, authentic, and natural flavors and aromas with end-to-end traceability and sustainability.
Europe Holds a Significant Market Share
Europe is the largest global market for spice and herb extracts. Despite low production, Europe is very inclined to import spices, herbs, and their extracts from developing regions such as Asia-Pacific, the Middle East, and Africa. The growing propensity towards healthy foods, organic food ingredients, foods with greater transparency, and a lower amount of sodium in salts is expected to create opportunities for spice and seasoning manufacturing companies.
In Italy, at the time of analysis, specific data on the segment’s turnover for 2024 are not yet available, but the 2023 data shows a turnover of approximately 42 million euros in the GDO (Large-Scale Distribution), with a 7% growth compared to the previous year.
The increase in demand for spices and seasonings, associated with the growth of food e-commerce, suggests a confirmation of the positive trend and offers companies interesting investment opportunities.
Companies can capitalize on this trend by developing online platforms dedicated to selling spices and seasonings, expanding the range of products available and offering customized services to appeal to an increasingly discerning customer base.
To respond to this trend, dedicated e-shops have flourished online and speculatively amazon has expanded its range of brands and products available: from more than 20,000 references for the generic kw “spices” and as many for “seasoning powder (!) up to ca 600 for a vertical ”seasonings”; not counting then the vertical kw for individual spices: > 1000 for cumin, > 2,000 for paprika, 3500 for ginger, offered in different formats and packaging to meet consumers’ needs and preferences.
Product visibility is aided by platform adv formulas that embrace all formats available on the platform with a special focus on video solutions, which allow for the telling of scents and flavors and different recipe formulas.
Roberto Botto
CEO of Inthezon, Libera Brand Building Group company
Note: The contents of this column are the result of independent evaluations by Inthezon and not by Amazon or brands attributable to it.