The global Grocery Retail market size was valued at USD 9.8 trillion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 4.1% during the forecast period, reaching a value of USD 17.8 trillion by 2030.
Grocery Retail market research report by Future Data Stats, offers a comprehensive view of the market's historical data from 2018 to 2021, capturing trends, growth patterns, and key drivers. It establishes 2022 as the base year, analyzing the market landscape, consumer behavior, competition, and regulations. Additionally, the report presents a well-researched forecast period from 2023 to 2030, leveraging data analysis techniques to project the market's growth trajectory, emerging opportunities, and anticipated challenges.
MARKET OVERVIEW:
Grocery retail refers to the business of selling food and non-food consumer products directly to consumers for their everyday consumption and use. It encompasses a wide range of products, including fresh produce, packaged foods, beverages, dairy products, household essentials, and more. Grocery retail is a vital component of the retail industry, serving as an essential source of sustenance and convenience for consumers worldwide. It encompasses various store formats, from supermarkets and hypermarkets to convenience stores and online platforms, offering diverse options for shoppers to purchase their groceries according to their preferences and needs. The grocery retail sector plays a pivotal role in the supply chain, ensuring the availability of essential goods and fostering competition among retailers to provide quality products and competitive prices to consumers.
The grocery retail industry is characterized by its dynamic nature, with constantly evolving consumer preferences and technological advancements. It operates in both physical and digital spaces, with e-commerce and online grocery shopping experiencing significant growth in recent years. As consumer lifestyles and shopping behaviors change, grocery retailers adapt by offering innovative services such as home delivery, curbside pickup, and personalized shopping experiences. Sustainability and ethical considerations also play an increasingly important role, with consumers seeking eco-friendly and locally sourced products.
MARKET DYNAMICS:
The key drivers propelling the market is the consistent demand for essential goods and everyday consumer products. The necessity for food, beverages, and household essentials ensures a steady market demand, fostering the continuous growth of grocery retail businesses. Additionally, technological advancements and the rise of e-commerce platforms have opened up new avenues for retailers, providing convenient options like online ordering, home delivery, and mobile apps, thereby enhancing the overall shopping experience for consumers and driving market expansion.
However, the grocery retail sector is not without its challenges. Intense competition among retailers can lead to thin profit margins, prompting a constant need for innovation and cost-effective strategies to stay competitive. Supply chain complexities, including logistics and inventory management, also pose challenges, particularly in ensuring the availability of fresh and perishable goods. Additionally, the industry faces restraints related to changing consumer preferences and economic fluctuations, influencing buying patterns and consumer spending in the market.
Amidst these challenges, numerous opportunities are emerging in the grocery retail landscape. One significant opportunity lies in the growing trend toward health and wellness, with consumers increasingly seeking organic, locally sourced, and sustainable products. Retailers can capitalize on this trend by diversifying their product offerings and emphasizing transparency in the sourcing and quality of goods. Moreover, the digital transformation of the industry provides opportunities for data-driven insights, personalized marketing, and improved customer engagement. Additionally, strategic partnerships and collaborations, both within the industry and with technology providers, offer avenues for innovation and enhanced operational efficiency, positioning grocery retailers to adapt and thrive in a rapidly changing market.
GROCERY RETAIL MARKET SEGMENTAL ANALYSIS
BY STORE TYPE:
Supermarkets remain a cornerstone of the grocery retail sector. Dominant factors associated with supermarkets include their extensive product variety, offering a wide range of fresh produce, packaged foods, and household essentials under one roof. Supermarkets excel in providing a convenient shopping experience, often featuring organized layouts, ample parking, and extended operating hours. They also frequently implement loyalty programs and promotions to attract and retain customers. Moreover, supermarkets have been quick to adapt to digital trends, offering online shopping and home delivery services, thereby expanding their reach in an increasingly competitive market.
Hypermarkets are another dominant factor in the Grocery Retail market. They combine the features of supermarkets with non-food retail, offering not only groceries but also clothing, electronics, and other consumer goods. The dominant factors related to hypermarkets include their vast retail space, which allows for extensive product offerings, competitive pricing, and one-stop shopping convenience. Additionally, hypermarkets leverage economies of scale to provide a wide array of products at competitive prices. Their ability to attract a large customer base with diverse shopping needs positions hypermarkets as significant players in the grocery retail landscape.
Convenience Stores play a dominant role, particularly in catering to on-the-go shoppers. Dominant factors associated with convenience stores include their strategic locations, often in high-traffic areas, which make them easily accessible for quick purchases. These stores typically offer a selection of essential groceries, snacks, and beverages, emphasizing convenience and speedy transactions. With the rise of urbanization and busy lifestyles, convenience stores continue to evolve by expanding their product range and embracing digital payment options, ensuring they remain a vital component of the grocery retail market.
Discounters, characterized by their focus on offering low prices, are dominant factors known for their competitive pricing strategies. These retailers typically carry a select range of products and emphasize cost-effective shopping experiences. Dominant factors include their ability to attract price-conscious shoppers, efficient supply chain management, and a lean store format. Discounters often appeal to budget-conscious consumers and have been successful in capturing market share by focusing on essential products at reduced prices.
Online Grocery Retail is a rapidly growing dominant factor in the grocery retail market. It offers the convenience of shopping from home, with a wide range of products available for delivery or pickup. Dominant factors in this segment include the convenience of 24/7 shopping, access to a vast product assortment, and personalized recommendations based on customer data. Online grocery retailers leverage digital platforms and mobile apps to streamline the shopping process, making it increasingly convenient for consumers.
BY PRODUCT CATEGORY:
Fresh Produce is a vital category with dominant factors related to consumer health consciousness and demand for organic and locally sourced items. Factors such as quality, freshness, and variety play significant roles in attracting shoppers to the fresh produce section of grocery stores. Retailers often focus on innovative displays, refrigeration systems, and supply chain management to maintain the quality and shelf life of fresh produce, meeting the high standards of consumers.
Packaged Foods represent a dominant factor in the Grocery Retail market, driven by factors such as convenience and shelf life. Consumers seek ready-to-eat and easy-to-prepare options in packaged foods, and retailers respond by offering a wide variety of choices. Dominant factors in this category include branding, packaging design, and product innovation to cater to changing dietary preferences, such as gluten-free, organic, and vegan options.
Beverages, encompassing everything from water and soft drinks to alcoholic beverages, are dominant factors due to their widespread appeal and consumer preferences. Factors such as marketing, brand recognition, and the demand for healthier beverage choices influence consumer purchasing decisions. Retailers often highlight beverage sections with promotional offers and unique displays to attract and engage shoppers.
Dairy Products represent a vital category with dominant factors related to freshness, quality, and health considerations. Dairy aisles in grocery stores emphasize factors like expiration dates, nutritional value, and taste to appeal to consumers. Dairy alternatives, including plant-based options, have gained traction due to changing dietary preferences, contributing to the dynamic nature of this category.
Frozen Foods offer convenience and long shelf life, making them a dominant factor in the grocery retail sector. Dominant factors in this category include innovations in frozen food technology, such as healthier and gourmet options, as well as packaging designed for portion control and easy preparation. Retailers often promote frozen food sections with sales and promotions to attract shoppers.
Non-food Items, including household essentials, cleaning supplies, and personal care products, play a critical role in the Grocery Retail market. Dominant factors in this category include demand for eco-friendly and sustainable products, convenience, and brand loyalty. Retailers focus on providing a comprehensive range of non-food items to meet the diverse needs of consumers, often incorporating them into loyalty programs and promotional bundles to drive sales.
REGIONAL ANALYSIS:
North America boasts a well-established and competitive Grocery Retail landscape, with dominant factors such as consumer preferences for convenience and extensive product choices. Supermarkets, hypermarkets, and convenience stores cater to a diverse customer base, offering a wide range of products, including organic and specialty items. Online grocery retail has also witnessed substantial growth, driven by the desire for contactless shopping and time-saving solutions. In North America, sustainability and ethical considerations play a crucial role, with consumers demanding eco-friendly and locally sourced products. Moreover, the region's regulatory environment and competitive landscape foster innovation in areas like digital payment solutions and loyalty programs.
Europe presents a dynamic Grocery Retail market characterized by a strong focus on sustainability, quality, and cultural diversity. Dominant factors include the prevalence of hypermarkets offering a wide variety of products under one roof, as well as the growth of online grocery retail. The region's commitment to reducing food waste has led to initiatives like packaging reduction and promoting the sale of imperfect produce. Furthermore, Europe has seen a rise in specialty and organic grocery stores, aligning with consumer preferences for healthier and ethically sourced products. The diversity in consumer tastes and preferences across European countries continues to drive innovation and adaptation in the grocery retail sector.
The Asia Pacific region exhibits a rapidly evolving Grocery Retail market influenced by factors such as population growth, urbanization, and changing consumer habits. Dominant factors include the prevalence of convenience stores in densely populated urban areas, catering to busy lifestyles. Additionally, online grocery retail has gained momentum, offering a wide range of products and delivery options. The region's diversity is reflected in the variety of products available, with a strong emphasis on fresh produce and local specialties. Asia Pacific also witnesses trends related to mobile payment systems, digital wallets, and the integration of technology to enhance the shopping experience.
COVID-19 IMPACT:
As lockdowns and social distancing measures were enforced, consumers flocked to grocery stores, leading to a surge in demand for essential goods. Retailers experienced unprecedented challenges in maintaining stock levels, leading to supply chain disruptions and temporary shortages of certain products.
Online grocery retail witnessed a significant uptick in popularity as consumers sought contactless shopping options to reduce the risk of exposure to the virus. Retailers and e-commerce platforms rapidly expanded their online grocery offerings, introducing new delivery and pickup services to accommodate the increased demand. As a result, the pandemic accelerated the adoption of digital shopping and prompted retailers to invest in technology to enhance the online shopping experience.
Safety measures within physical stores, including the implementation of social distancing protocols, mask mandates, and sanitization efforts, became paramount. Consumers also showed a heightened interest in hygiene-related products, further impacting sales within the non-food categories.
INDUSTRY ANALYSIS:
Mergers & Acquisitions:
- Albertsons Companies, Inc. and Kroger Co. to merge in $24.6 billion deal: The two largest grocery chains in the United States announced in October 2022 that they would merge in a $24.6 billion deal. The merger is expected to create a new company with over 5,000 stores and $200 billion in annual revenue.
Product New Launches:
- Meal kits: Meal kits continue to be a popular trend in the grocery industry, with new companies launching and existing companies expanding their offerings. In 2023, meal kit company HelloFresh launched a new line of plant-based meals.
- Plant-based products: Plant-based products are another growing trend in the grocery industry. In 2023, Beyond Meat launched a new plant-based burger that is designed to taste and cook like a traditional beef burger.
- E-commerce: Many grocery retailers are investing in e-commerce in order to meet the growing demand for online grocery shopping. In 2023, Walmart announced that it would be expanding its online grocery delivery service to more markets.
KEY MARKET PLAYERS:
- Walmart Inc.
- Amazon.com, Inc.
- The Kroger Co.
- Costco Wholesale Corporation
- Ahold Delhaize
- Tesco PLC
- Carrefour S.A.
- Metro AG
- Albertsons Companies, Inc.
- Target Corporation
- Lidl Stiftung & Co. KG
- Aldi Einkauf GmbH & Co. oHG
- CVS Health Corporation
- Walgreens Boots Alliance, Inc.
- Sainsbury's
- Publix Super Markets, Inc.
- EDEKA Group
- BJ's Wholesale Club Holdings, Inc.
- Woolworths Group Ltd.
- Coles Group Ltd.
- ICA Gruppen AB
- Seven & i Holdings Co., Ltd.
- Rewe Group
- Wakefern Food Corp.
- SpartanNash Company
- others
Table of Contents
- Introduction
- Executive Summary
- Market Overview
- Market Segmentation
- By Store Type
- By Product Category
- By Shopper Demographics
- By Region
- Key Players in the Grocery Retail Market
- Competitive Landscape
- Market Share Analysis
- Recent Developments and Trends
- Technological Advancements
- Online Grocery Retail
- Regulatory Environment
- Sustainability Initiatives
- Supply Chain and Distribution
- Consumer Behavior and Preferences
- Market Challenges
- Case Studies
- Future Outlook
- Conclusion
- Appendix
- Glossary of Terms
- Methodology
- About the Author/Company
Grocery Retail Market Segmentation
By Store Type:
- Supermarkets
- Hypermarkets
- Convenience Stores
- Discounters
- Online Grocery Retail
By Product Category:
- Fresh Produce
- Packaged Foods
- Beverages
- Dairy Products
- Frozen Foods
- Non-food Items
By Geography:
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
- Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
- South America (Brazil, Argentina, Columbia, Rest of South America)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)
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RESEARCH METHODOLOGY
With a collective industry experience of about 70 years of analysts and experts, Future Data Stats encompasses the most infallible research methodology for its market intelligence and industry analysis. Not only does the company dig deep into the innermost levels of the market, but also examines the minutest details for its market estimates and forecasts.
This approach helps build a greater market-specific view of size, shape, and industry trends within each industry segment. Various industry trends and real-time developments are factored into identifying key growth factors and the future course of the market. The research proceeds are the results of high-quality data, expert views & analysis, and valuable independent opinions. The research process is designed to deliver a balanced view of the global markets and allows stakeholders to make informed decisions, to attain their highest growth objectives.
Future Data Stats offers its clients exhaustive research and analysis, based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models distill the data & statistics and enhance the accuracy of our recommendations and advice.
With Future Data Stats calibrated research process and 360° data-evaluation methodology, the clients receive:
- Consistent, valuable, robust, and actionable data & analysis that can easily be referenced for strategic business planning
- Technologically sophisticated and reliable insights through a well-audited and veracious research methodology
- Sovereign research proceeds that present a tangible depiction of the marketplace
With this strong methodology, Future Data Stats ensures that its research and analysis is most reliable and guarantees sound business planning.
The research methodology of the global market involves extensive primary and secondary research. Primary research includes about 24 hours of interviews and discussions with a wide range of stakeholders that include upstream and downstream participants. Primary research typically is a bulk of our research efforts, coherently supported by extensive secondary research. Over 3000 product literature, industry releases, annual reports, and other such documents of key industry participants have been reviewed to obtain a better market understanding and gain enhanced competitive intelligence. In addition, authentic industry journals, trade associations’ releases, and government websites have also been reviewed to generate high-value industry insights.
Primary Research:
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Primary Research
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Desk Research
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Company Analysis
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• Identify key opinion leaders • Questionnaire design • In-depth Interviews • Coverage across the value chain
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• Company Website • Company Annual Reports • Paid Databases • Financial Reports
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• Market Participants • Key Strengths • Product Portfolio • Mapping as per Value Chain • Key focus segment
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Primary research efforts include reaching out to participants through emails, telephonic conversations, referrals, and professional corporate relations with various companies that make way for greater flexibility in reaching out to industry participants and commentators for interviews and discussions.
The aforementioned helps to:
- Validate and improve data quality and strengthen the research proceeds
- Develop a market understanding and expertise
- Supply authentic information about the market size, share, growth, and forecasts
The primary research interview and discussion panels comprise experienced industry personnel.
These participants include, but are not limited to:
- Chief executives and VPs of leading corporations specific to an industry
- Product and sales managers or country heads; channel partners & top-level distributors; banking, investments, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research:
A broad array of industry sources for the secondary research typically includes, but is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for a competitive scenario and shape of the industry
- Patent and regulatory databases to understand technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles, web-casts, and other related releases to evaluate the market
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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PRIMARY SOURCES |
DATA SOURCES |
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• Top executives of end-use industries • C-level executives of the leading Parenteral Nutrition companies • Sales manager and regional sales manager of the Parenteral Nutrition companies • Industry Consultants • Distributors/Suppliers
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• Annual Reports • Presentations • Company Websites • Press Releases • News Articles • Government Agencies’ Publications • Industry Publications • Paid Databases
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Analyst Tools and Models:
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BOTTOM-UP APPROACH |
TOP-DOWN APPROACH |
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· Arriving at · Arriving at · Market Share · Key Market Players |
· Key Market Players · Market Share · Arriving at · Arriving at |
Grocery Retail Market Dynamic Factors
Drivers:
- High demand for essential goods.
- Growth of online grocery retail.
- Consumer preference for convenience.
- Sustainability and ethical considerations.
- Technological advancements in retail.
Restraints:
- Intense competition among retailers.
- Thin profit margins.
- Supply chain complexities.
- Changing consumer preferences.
- Economic fluctuations.
Opportunities:
- Health and wellness trends.
- Expansion into emerging markets.
- Digital transformation of the industry.
- Sustainability initiatives.
- Strategic partnerships and collaborations.
Challenges:
- Supply chain disruptions.
- Inventory management.
- Regulatory compliance.
- Online security and data privacy.
- Adaptation to changing consumer behaviors.
Frequently Asked Questions
