Food Ecommerce in 2025: How CPG Brands Can Win in a $100B Market

Food ecommerce isn’t slowing down—it’s transforming. 

Food and beverage sales as a percentage of total retail e-commerce sales is growing quickly, increasing from 9.3 percent in 2017 to almost 16 percent in 2023, and is projected to reach 21.5 percent by 2027 according to Statista.

From CPG branding strategies to CPG marketing innovations, companies must embrace data-driven decision-making, sustainability, and omnichannel retail to capture market share. The question isn’t whether food ecommerce will dominate—it’s which brands will lead the charge.

What is food ecommerce?

Food ecommerce refers to the buying and selling of food and beverage products through digital platforms. This includes major grocery retailers, CPG business giants, specialty food brands, meal kit providers, and direct-to-consumer (DTC) companies. The sector has exploded in recent years. In December 2024, U.S. online grocery sales reached $9.6 billion, marking a 19% increase compared to December 2023.

As demand for convenience grows, food trends such as sustainable sourcing, hyper-personalization, and rapid delivery are shaping the future of food ecommerce. But with opportunity comes competition—brands must embrace innovation and execution speed to succeed.

Top trends shaping food ecommerce in 2025

The industry is shifting fast, with multiple trends reshaping CPG marketing strategies and consumer expectations:

1. The rise of direct-to-consumer (DTC) food brands

DTC models are surging, with brands controlling their pricing, branding, and customer relationships more effectively. Emerging natural and functional food brands are using DTC to build niche audiences and drive brand loyalty.

2. Online grocery expansion

While the pandemic accelerated online grocery adoption, consumer habits have stuck. By 2026, online grocery is expected to account for 20% of total grocery sales.

3. Rapid delivery expectations

The battle for speed continues. Services like Instacart and Uber Eats have set a new standard, and even traditional retailers are ramping up same-day or two-hour delivery options.

4. Sustainability and ethical sourcing

More brands are integrating food trends like regenerative agriculture, carbon-neutral operations, and zero-waste packaging to appeal to eco-conscious shoppers.

5. Subscription-based models

Consumers are looking for convenience, and meal kits, curated snack boxes, and specialty food subscriptions are thriving. Brands that offer subscription options are seeing higher retention rates.

6. AI-driven personalization

AI-powered recommendations, smart shopping carts, and predictive analytics are enabling hyper-personalized shopping experiences. CPG ecommerce brands that leverage AI effectively are driving higher conversion rates.

7. Alternative proteins gaining traction

Plant-based and lab-grown proteins continue to expand. With 67% of global consumers willing to try plant-based alternatives, the category remains a hotbed for innovation.

8. Smart packaging and transparency

Consumers demand clear labeling on sourcing, allergens, and sustainability. QR codes and blockchain tracking are providing greater transparency.

9. Voice and chat commerce

Voice-activated shopping via Alexa and Google Assistant is growing, while AI chatbots streamline customer service and sales.

10. Omnichannel dominance

Seamless online-to-offline shopping experiences are essential. Successful CPG business players are integrating ecommerce with brick-and-mortar stores, offering BOPIS (Buy Online, Pick Up In-Store) and curbside pickup.

Challenges facing food ecommerce

While opportunities abound, food ecommerce comes with challenges:

• Logistics & delivery costs: Cold chain management, last-mile delivery, and rising freight costs can cut into margins.
• Customer trust & quality assurance: Consumers want freshness and safety guarantees, making packaging and handling crucial.
• Market saturation & competition: The space is crowded, requiring brands to stand out through differentiation.
• Regulatory compliance: Navigating food safety, labeling laws, and international regulations is complex.

Brands that solve these challenges through tech-driven solutions and streamlined operations will thrive.

Technological innovations driving growth

CPG ecommerce is undergoing a transformation powered by tech. Innovations include:

• AI-powered demand forecasting to reduce waste and optimize inventory.
• Automated fulfillment centers using robotics to increase efficiency.
• Smart contracts & blockchain to verify food origin and authenticity.
• Augmented reality (AR) shopping for immersive digital grocery experiences.

Marketing and branding strategies for food ecommerce success

To win in food ecommerce, brands must sharpen their CPG branding and CPG marketing strategies:

• Storytelling matters: Authentic brand stories create emotional connections and drive loyalty.
• Influencer partnerships: TikTok, Instagram, and YouTube influencers are driving sales for food brands.
• SEO & content marketing: Creating engaging, search-optimized content around food trends attracts organic traffic.
• Personalization & loyalty programs: AI-driven recommendations and tailored promotions boost retention.
• Social commerce: Facebook, Instagram, and TikTok Shopping are emerging as major sales channels.

Want to see how AI can transform your CPG business? Schedule a demo with Tastewise and discover how data-driven insights drive revenue faster.

What’s next for food ecommerce?

The future of food ecommerce is bright, but brands must adapt to stay ahead. By investing in AI, personalization, and seamless logistics, businesses can capitalize on evolving food trends and consumer expectations. CPG branding and CPG marketing will need to prioritize authenticity, transparency, and engagement to build lasting customer relationships.

For brands that execute well, 2025 presents unparalleled opportunities in CPG ecommerce. The time to act is now.