UK’s Plant-Based Dairy Leads E-Commerce Growth
Source: DairyNews.today
The UK’s cost-of-living crisis has reshaped grocery retail dynamics, with price-conscious consumers driving significant gains for discounters and private label products. In contrast, higher-priced retailers have seen slowing sales, while brands face mounting pressure to stand out in a value-driven market.
Despite these challenges, plant-based dairy products—encompassing milk, yogurt, and cheese—have emerged as a notable success story, leveraging e-commerce to outpace conventional dairy. Online channels now account for 16% of plant-based dairy’s value sales in 2024, surpassing the 11% share for traditional dairy, according to industry data.
As discounters expand and offline competition intensifies, the online success of plant-based dairy offers valuable insights for grocery retailers seeking to unlock growth opportunities in e-commerce for similar and other FMCG categories.
The Power of Repeat Customers
Repeat customers are the cornerstone of plant-based dairy’s online growth. Data from Euromonitor International’s E-Commerce system highlights their critical role, with Tesco securing nearly 95% of its online plant-based dairy sales from repeat buyers. These loyal shoppers also represent 78% of Tesco’s customer base in the category.
Repeat customers not only provide consistent revenue streams but also contribute higher order values. On average, repeat shoppers spend 26% more per order compared to one-time buyers, underlining the importance of customer retention for driving profitability in this segment.
Strategic Insights for Retailers
The performance of plant-based dairy illustrates the potential of e-commerce for fostering customer loyalty and increasing sales in price-sensitive environments. By prioritizing strategies that enhance retention—such as personalized promotions, subscription models, and seamless user experiences—retailers can build resilient revenue streams.
As grocery retail continues to evolve, the plant-based dairy category serves as a blueprint for leveraging e-commerce to navigate price pressures, capture loyal customers, and drive sustainable growth.
As discounters expand and offline competition intensifies, the online success of plant-based dairy offers valuable insights for grocery retailers seeking to unlock growth opportunities in e-commerce for similar and other FMCG categories.
The Power of Repeat Customers
Repeat customers are the cornerstone of plant-based dairy’s online growth. Data from Euromonitor International’s E-Commerce system highlights their critical role, with Tesco securing nearly 95% of its online plant-based dairy sales from repeat buyers. These loyal shoppers also represent 78% of Tesco’s customer base in the category.
Repeat customers not only provide consistent revenue streams but also contribute higher order values. On average, repeat shoppers spend 26% more per order compared to one-time buyers, underlining the importance of customer retention for driving profitability in this segment.
Strategic Insights for Retailers
The performance of plant-based dairy illustrates the potential of e-commerce for fostering customer loyalty and increasing sales in price-sensitive environments. By prioritizing strategies that enhance retention—such as personalized promotions, subscription models, and seamless user experiences—retailers can build resilient revenue streams.
As grocery retail continues to evolve, the plant-based dairy category serves as a blueprint for leveraging e-commerce to navigate price pressures, capture loyal customers, and drive sustainable growth.
