While e-commerce on the rise globally, Philippines still growing in traditional trade

Kantar Worldpanel’s Winning Omnichannel – an annual report on FMCG trade channels – was published recently, revealing the shrinking market share of supermarkets and hypermarkets across the globe. 2016 hypermarket and supermarket FMCG value sales grew by just 0.7%, while online spending grew by 26%; discounters by 5.1% and cash and carry by 4.1%.

Table 1: Global FMCG value share and 2016 value growth, per channel

Channel Global value share 2015 Global value share 2016 Percentage value increase (yoy)
E-commerce 3.8% 4.6% 26%
Discounters 5.5% 5.6% 5.1%
Convenience 4.6% 4.6% 4.1%
Cash and carry 1.1% 1.4% 4.1%
Hypermarkets and supermarkets 53.2% 52% 0.7%
Traditional 26.1% 26.1% 3.2%
Door to door 0.8% 0.8% 0.7%
Drugstore and pharma 0.6% 0.6% 0.9%

The share of hypermarkets and supermarkets is predicted to reduce further, to just 48% of global FMCG spend by 2021, with e-commerce set to grow to 7.5% and discounters 6.5%.


The share of grocery shopping conducted online continues to rise, particularly in the world’s most advanced e-commerce markets, such as South Korea, China and the UK. In the UK, online sales grew from 6.7% to 7.3% value share in the last year alone. British shoppers are second only to South Koreans in the proportion of groceries they buy online.

Meanwhile, the countries with the slowest growing e-commerce include France, Argentina, Japan, and surprisingly, the U.S.


Discounters are the second-fastest growing channel in 2016 with 5.1% value growth. Discounters saw the highest value growth in Colombia –124% – where over 600 stores were opened in 2016. Following Colombia are Argentina, Brazil, the U.K., and Ecuador.

Countries where discounters experience slow growth include Japan, Spain, Chile, Portugal, and France.

Traditional trade

In developing regions where modern trade would be the next practical step, traditional and other formats (comprising door-to-door, cash and carry and pharmacies) are still performing well. In Africa, for example, where price and connectivity are key factors, traditional trade accounts for an average of 69.4% value share).

FMCG spend through this channel is growing faster than total FMCG in 50% of regions across the globe.

Argentina, Brazil, Ghana, Taiwan, Vietnam, and the Philippines are the countries where traditional trade is still growing strong.

Stéphane Roger, global shopper and retail director, Kantar Worldpanel, said: “Channels which traditionally dominated the field – supermarkets, hypermarkets, drugstores – are in steady decline worldwide. Step forward the ‘new order’: e-commerce and discounters, cannibalising the big retailers with their promise of convenience and lower prices.

“Technology is fast changing the way people shop and, with e-commerce and discounters set to continue their march at the expense of large format retailers, there is an urgent need for retail reconfiguration across the world.”