Apr 4, 20253 min read

By: Tom Duffy, Senior Advisor, Nonfoods Community Development, FMI

Mother and baby

The grocery industry's digital transformation is not just driven by food, but also nonfood categories like Health & Beauty and Baby Care.

According to the Digital Engagement Transforms Grocery Shopping study from FMI and NIQ, U.S. online sales of grocery items are projected to reach $388 billion by 2027, with nonfoods leading the charge. Health & Beauty, Baby Care, Pet Care, and Household Goods are among the top drivers of this growth. These categories align perfectly with what makes ecommerce thrive: convenience, consistency, and the ability to compare brands and read reviews easily.

Remarking on the research, Steve Markenson, FMI vice president of research & insights, highlights that there is a difference in fulfillment patterns between food and nonfoods, with nonfoods being more commonly shipped, and that mass merchandiser retailers sell a larger number of general merchandise nonfood products that are more conducive to online sales.

Health & Wellness Categories Embrace Omnichannel

Health & Beauty products, such as skin care, vitamins and personal hygiene items, are often purchased routinely, making them ideal for digital shopping lists and auto-replenishment features. Meanwhile, Baby Care is where busy parents are especially grateful for the time saved by skipping the store trip and buying diapers, wipes and formula online.

Looking further into the Digital Engagement Transforms Grocery Shopping, given that online grocery penetration is still growing (on track to comprise one-quarter of grocery sales by 2027) we can expect continued strong growth in online purchasing of health & wellness categories. Both the data and industry efforts point toward a future where picking up your vitamins or protein supplements via a quick online order is as commonplace as adding pantry staples to your digital cart.

Don't Overlook the Nonfoods Blend and Opportunity

FMI's research shows shoppers are becoming more digitally engaged, even if they still prefer to shop in-store for fresh items. Retailers must be ready to support nonfoods discovery and purchase across digital and physical shelves.

Manufacturers in the wellness space are doubling down on omnichannel. As Aileen Stocks, president of vitamins, minerals and herbal supplements at Nestlé Health Science, noted in the Power of Nonfoods interview blog series, brands recognize the "increasing importance of digital channels" and strive to provide a seamless omnichannel experience for consumers' wellness journeys. In practice, this means ensuring products are available across online marketplaces, grocery pickup/delivery, and in-store – meeting shoppers wherever they shop.

For retailers and suppliers, nonfoods are important in omnichannel strategies. As shoppers increasingly turn to online channels for routine essentials, nonfood categories will drive basket size, build loyalty, and grow market share.

To dive into this topic further, join us for two exclusive events to help you maximize the role of nonfoods in driving sales, customer engagement and total store performance.

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