CPG Killed it in E-Commerce in 2015

Vice President, Consumer Insights Products

Mall

2015 was a massive growth year for most consumer packaged goods (CPG) categories online. According to estimates from 1010data, retail e-commerce sales grew by 30% over 2014. In store sales for most categories remained nearly flat (U.S. Census Dep’t).

While total e-commerce grew by 30%, CPG grew at an even faster pace of 42% year over year. Much of the growth was fueled by Amazon’s Subscribe and Save feature (SNS) being the default selection for many Amazon users as they check out. Over 20% of all growth in CPG came from SNS.

Amazon SNS revenue for the 50 CPG categories we measured grew by a whopping 214% - that’s the beauty of the compounding nature of subscription sales. The 3 largest SNS categories were baby diapers, pet food, and coffee. The fastest growing were hair care, baby wipes, and deodorant.

The fastest growing CPG category across total e-commerce we measured was Laundry Detergent with 85% YOY growth. Laundry Detergent is dominated online by Tide, who had 48% percent market share.

The category that came in second place for growth was Toothpaste with 75% YOY growth, with Crest leading the way in terms of market share. Colgate Palmolive owns both the Colgate brand and Tom’s of Maine. When you combine both those brands, as a manufacturer, Colgate Palmolive is the leading seller online toothpaste seller with 26% market share.

The largest category in CPG, according to 1010data estimates, is pet food, which did $760M in e-commerce sales in the U.S. in 2015, up 55% from $490M the prior year. The next largest categories were Facial Moisturizers and Fragrances with $450M and $330M in revenue respectively and 25% and 11% growth respectively.

The CPG brand that sold the most in 2015 was Pampers followed at a distant second by the protein brand Optimum Nutrition.

 

The fastest growing brand that did more than $5M in annual sales in 2015 was Amazon’s own CPG brand (Amazon Elements) that sells parenting staples such as Amazon Elements Baby Wipes. Amazon Elements grew by over 4000% in CPG sales. Not big dollars yet, but they are well on their way.

Bai energy drinks grew by 625% and took the second place in growth for $5M+ brands.

The fastest growing brand that did more than $20M in online sales in 2015 was Dove with 136% YOY growth. There were only 40 brands in the CPG categories we measured that did over $20M in annual sales in 2015.

The #2 and #3 growth winners amongst the larger brands were pet food with Hill’s Pet Nutrition growing 126% and Purina growing 123%.

Four of the top ten fastest growing large brands were pet food.

E-commerce is still less than 10% of total sales and often less than 5% for major CPG manufacturers such as P&G, J&J, Unilever, Mondelez, Coca-Cola, and Pepsi. However, the majority of their sales growth in the U.S. is coming from e-commerce in many categories.

Over the past 12 months, we at 1010data have experienced a surge in interest in online insights from major CPG companies given these growth statistics. We will be presenting at both NRF at the end of this month and at eTail West in February if you want to talk in more depth over a cup of coffee or a cold beer. Reach out to us at sales@1010data.com.

Methodology

1010data’s Ecom Insights opt-in panel anonymously measures where consumers shop online, the purchase path they take and which items they ultimately purchase. The panel data comprises analysis of the top 100 online retailers in the US, covering approximately 95% of total retail purchases as defined by 1010data.