US: 1.646.568.9797 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
Report Overview: Global Food & Grocery Retail MarketThe global food and grocery retail market size was valued at USD 10.6 trillion in 2019 and looks set to grow at a compound annual growth rate (CAGR) of 4.9% from 2021 to 2027. Increased disposable income as a result of economic growth has fueled the spending on consumables. Furthermore, an increasing number of middle-class consumers and rising brand consciousness among them have been driving the market for food and grocery retail in developing countries, including India and China. With the increasing use of online shopping platforms, several players in the industry are entering into e-grocery and improving their presence. For instance, Walmart has expanded its online distribution channel and started same-day delivery in 2019. Similarly, Kroger Co has increased its pickup sites for online orders. Additionally, in June 2017, Amazon declared its acquisition of Whole Foods Market Inc. This acquisition has enhanced Amazon’s fresh grocery retail services in new markets. Such initiatives to strengthen the online presence of the competitors have been shaping the buying behavior of the consumers. Price and convenience have a significant impact on a consumer’s choice as these are the two primary concerns of the consumers while purchasing grocery products. As a result, in-store or online price parity influence market growth positively. Furthermore, supermarkets have been arranging special events, such as cookery classes, to increase the footfall and boost consumer engagement. Retail suppliers often partner with brands for such initiatives. For instance, Target Brands, Inc. partnered with Chobani, a Greek yogurt manufacturer, to arrange a yogurt bar inside its retail stores. As a result of the COVID 19 outbreak, the food and grocery retail market is witnessing a significant rise in demand globally. The lockdown in several nations has been causing disruption in the supply chain. Both brick-and-mortar and online merchants are facing difficulties to meet the intensified demand for food and grocery products. Furthermore, the revenue of vendors has jumped up remarkably in the first quarter of 2020. The Kroger Co has announced a 30% increase in identical-store sales in March. The panicked shoppers have been emptying the shelves and putting pressure on the available store staff. As a result, key retail suppliers have started hiring workers to keep up with the demand. For instance, Walmart, Amazon, Dollar General, CVS, and Albertsons are hiring 150,000, 100,000, 50,000, 50,000, and 30,000 employees respectively to serve the consumers.
Product Insights: Global Food & Grocery Retail MarketPackaged food lead the market for food and grocery retail with more than 40% share of the total revenue in 2019. High consumption of the packaged foods and grocery products, such as bread, butter, cheese, desserts, frozen groceries, edible oil, processed meat, savory snacks, and yogurt, has fueled the growth of the packaged food segment. Factors including effortless cooking and consumption, easy handling, and better protection from external tampering have been driving the demand for these grocery products among the consumers. Furthermore, the busy schedule of the consumers is encouraging them to opt for convenient foodstuffs and other grocery items. In addition, packaged food products are poised to gain popularity over the coming years owing to the widening base of the working population. Over the past few years, demand for ready-to-eat, ready-to-cook, and bakery products has been witnessing significant growth across the globe. This has been accelerating the growth of the packaged food segment. Manufacturers have been innovating and internationalizing their packaged food and grocery products to expand their consumer base.
Distribution Channel Insights: Global Food & Grocery Retail MarketThe supermarkets and hypermarkets held the largest share of over 55% in 2019. The majority of consumers prefer to handpick things themselves. Consumers feel more comfortable with selecting their own grocery items, especially with fresh products. Generally, consumers have very specific preferences for fruits and vegetables. For example, they prefer some products green and some ripe. Other factors driving this distribution channel include price discounts, shopping experience, immediate purchase of grocery products, and availability of a wide range of products in a single shop. Furthermore, enhanced services such as click and collect have fueled the sales of grocery products through this channel. Online distribution channel is projected to witness the fastest growth in the upcoming years. Retail giants including Walmart, Kroger, and Target have been investing in online ordering and distribution capabilities in order to compete with large e-commerce platforms, such as Amazon. Constant increase in smartphone and broadband adoption, especially in the developing nations, has been boosting online retail sales. Flexible retail option is the key factor fueling the growth of the online distribution channel. Online sales of several food products, such as liquid milk, chocolate, chips/crisps, cookies, have increased notably over the world. Furthermore, rising enthusiasm and comfort for digital shopping among the millennials and Generation Z consumers have been boosting the growth of the segment in the food and grocery retail industry.
Regional Insights: Global Food & Grocery Retail MarketAsia Pacific lead the market for food and grocery retail in 2019 with more than 45% share of the global revenue. China, India, Japan, and Indonesia are the key markets in the region. The growth of e-commerce and online retail has positively impacted the China’s market. vendors have been shifting their focus towards second and third tier cities as first-tier cities have become saturated. Similarly, India has huge potential in the region. The Indian market is majorly lead by traditional retail and other grocery stores. However, modern retail chains are also expanding significantly in the key cities and urban centers. Middle East and Africa is anticipated to witness the fastest growth over the forecast period 2021-2027. The region presents a wide scope for the development of food and grocery retail in the upcoming years. The transition from traditional retail to modern retail format is expected to fuel the growth in the region. Furthermore, the growing middle-class population, along with increasing affordability in South Africa and UAE, will boost the expansion of the food and grocery retail industry over the forecast period.
Key Companies & Market Share Insights: Global Food & Grocery Retail MarketParticipating companies have been expanding their geographic presence across the globe in order to increase their consumer base. For instance, in April 2019, Walmart announced to invest more than USD 800 million in Texas, California, Florida, and other states of U.S. to open new retail stores and renovate. Some of the prominent players in the food and grocery retail market include:
Key companies Profiled: Global Food & Grocery Retail Market Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global food and grocery retail market report based on the product, distribution channel, and region:
- Costco Wholesale Corporation
- 7-Eleven, Inc.
- The Kroger Co
- Schwarz Gruppe
- ALDI Purchasing GmbH & Co. oHG
- Carrefour; Tesco PLC
- Target Brands, Inc.
- Ahold Delhaize
- Albertsons Companies
Product Outlook (Revenue, USD Billion, 2016 - 2027)Packaged Food Unpackaged Food Drinks Tobacco Household Products
Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2027)Supermarkets & Hypermarkets Convenience Store Online
Table of Contents Chapter 1. Methodology and Scope 1.1. Market Segmentation & Scope 1.2. Market Definition 1.3. Information Procurement 1.3.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2. IFF Internal Database 1.3.3. Secondary Sources & Third-Party Perspectives 1.3.4. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1 | read more...