Food & Grocery Retail Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Food & Grocery Retail Market size is projected to reach a CAGR of 5.2% from 2023-2030.

A Food and Grocery Retail Market is a store that sells food and other small household items including meat, fresh dairy products, fresh dairy produce, bakery items, baby foods, cleaning products, beverages, vegetables, and fruits, cooking oil, frozen foods, and more. Food and groceries are necessities, and Food and Grocery Retailers facilitate all of these necessities in a single place with suitable price discounts and numerous other offers.

The demand for groceries is rising rapidly in response to the increasing demand for daily needs. This is one of the main factors driving the Food and Grocery Retail industry. Moreover, with the world’s population increasing, most people require regular groceries for basic survival. The global Food And Grocery Retail industry is expanding rapidly grow as a result of factors including rapid urbanization and industrialization. As people’s standard of living enhances, they demand higher-quality food. Moreover, because groceries are vital foods for the general public, the Food and Grocery Retail industry is growing. Price and convenience have a substantial impact on a consumer’s decision because these are the 2 primary concerns of customers when buying grocery products. As an outcome, price parity in-store or online has a beneficial impact on customer development.

Even though it has many drivers, a few restraints can affect the growth of this market. The industry can face challenges in the form of an ineffective supply chain and challenges from unrecognized players in the market.

The growth can be primarily attributed to COVID-19 lockdown-induced higher spending on groceries, increased online-grocery sales volume, and consumer polarization. The pandemic resulted in the emergence of consumer polarization where some consumers scaled up to purchase expensive products. Furthermore, the pandemic-induced increased cooking at home has been a major growth driver for the market growth. The COVID-19 pandemic has altered the food and grocery retail industry.

Delvens Industry Expert's Standpoint

The growth of the grocery market is a direct result of the increasing demand for daily necessities. The population factor is a significant contributing factor, as people have raised their standard of living, leading to an increased demand for high-quality food and grocery items. Food and groceries are essential goods, and food and grocery retailers provide all these necessary items in one convenient location, offering suitable price discounts and a multitude of other offers to further entice customers. As a result, the grocery market has seen significant expansion, and the competition among retailers has intensified, benefiting consumers with better deals and more options.

Market Portfolio

Key Findings

• Food And Grocery Retail Market is a store that sells food and other small household items including meat, fresh dairy products, fresh dairy produce, bakery items, baby foods, cleaning products, beverages, vegetables, and fruits, cooking oil, frozen foods, and more. Food and groceries are necessities, and Food and Grocery Retailers facilitate all of these necessities in a single place with suitable price discounts and numerous other offers.
   
• The product segment is further fragmented into Fresh Food, Frozen Food, Food Cupboards, Beverages, Cleaning & Household, and Others. The food cupboard segment held the largest market share and is anticipated to dominate the market during the forecast period. The surge in cooking and baking activities, predominantly noticed among Generation Z consumers has led to an increased demand for the food cupboard segment in recent years. Nutrition and provenance have become increasingly important in the fine food industry in recent years, but the demand for high-quality, long-lasting food cupboard ingredients is expected to increase over the coming years, as more customers shop locally and less frequently.
   

• The distribution channel segment is further fragmented into Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores & Clubs, and Online. The supermarkets & hypermarkets segment led the market and is anticipated to dominate the market during the forecast period. The high number of supermarkets and hypermarkets across the globe is the primary factor for its large market share. The convenient shopping experience of having a plethora of food and beverage items in a single place is one of the key factors that drive consumers to visit their nearby supermarkets and hypermarkets.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific accounted for the maximum share with the largest revenue share and is anticipated to maintain its dominance during the forecast period. The proliferation of supermarkets in developing countries in this region is the main factor leading to the dominance of this region. This rise of supermarkets in the Asia Pacific has been brought about by factors, which include urbanization and rising disposable incomes on the demand side, Foreign Direct Investment (FDI), format diversification, domestic investments, and modernization of procurement systems to reduce costs on the supply side. Increases in mobile usage and broadband penetration, particularly in developing countries, have also aided in the growth of online food purchases.

Regional Analysis

North America to Dominate the Market

• Asia Pacific accounted for the maximum share with the largest revenue share and is anticipated to maintain its dominance during the forecast period.
   
• The proliferation of supermarkets in developing countries in this region is the main factor leading to the dominance of this region. This rise of supermarkets in the Asia Pacific has been brought about by factors, which include urbanization and rising disposable incomes on the demand side, Foreign Direct Investment (FDI), format diversification, domestic investments, and modernization of procurement systems to reduce costs on the supply side. Increases in mobile usage and broadband penetration, particularly in developing countries, have also aided in the growth of online food purchases.

Competitive Landscape

Competitive landscape

• Walmart
• Costco Wholesale Corporation
• 7-ELEVEN, Inc.
• Amazon.com Inc
• The Kroger Co.
• Target Brands, Inc.
• ALDI
• AEON Co Ltd
• Carrefour CA
• Schwarz Gruppe

Recent Developments

• In January 2021, Alimentation Couche-Tard Inc., a Canadian convenience store company acquired Carrefour S.A., a French multinational retail company to launch its 26,000 food and grocery stores in U.S. and Canada.
   
• October 18, 2022 — Walmart announced the launch of a new platform designed around creators. The program is called Walmart Creator and it is a one-stop portal that makes it easy for creators to monetize shoppable products from the retailer. Walmart believes anyone can be a creator, and the product democratizes the tools and resources needed to do so.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for Food & Grocery Retail Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope