Food & Grocery Retail Market Size, Share & Industry Analysis, By Product Type (Food, Grocery), By Category (Packed, Unpacked), By Distribution Channel (Hypermarkets & Supermarkets, Convenience Stores, Online Stores, Others) And Regional Forecast, 2024-2032

People commonly consume a variety of food & grocery items for their daily living needs. Such items are of different categories such as fresh food, frozen foods, cosmetics, personal care & home care products, beverages, and others. Implementation of an adequate price-product mix by the food and grocery retailers helps them achieve the revenues from such items.

Nowadays, businesses associated with food and grocery retailing focus on managing their inventories to generate required revenues from such products. Additionally, they implement various analytical measures to track the consumer behavior towards buying such items from their shops. For instance, in January 2020, The Kroger Company, a prominent food and grocery retailer company, partnered with Microsoft Inc. to develop a digital ecosystem that can track the customers' real-time buying behavior at their shops.

Nowadays, retail companies are conducting different kinds of classes, discount pop-ups and events related to the grocery items in their retail outlets. This helps them build the customers' confidence towards buying grocery items from their retail outlets, thereby driving the market growth. For instance, in October 2020, Walmart Inc. implemented the three 'Black Friday' events at its U.S. stores to provide discounted grocery items to U.S. consumers. Growing trends of consuming dietary and frozen food items among the global population are further likely to drive such products' revenues.

Moreover, the rising trend of online shopping among the global population is expected to provide newer opportunities for the retailing industry's growth. Besides this, consumers started restocking the variety of food and grocery items in the households to avoid the unavailability of such products during the COVID-19 lockdown period. This resulted in a spike in the revenues from such items. According to the data presented by the USDA Foreign Agricultural Services, from 1^st January 2020 to 17^th May 2020, the U.K. supermarket's grocery sales spiked by 63% over to that of 2019. 

However, Huge competition from the unorganized and local industry players is anticipated to restrain the market growth. Additionally, disruption in the food and grocery supply chain due to several unforeseen factors such as military war, tornados, and others is expected to pose challenges to the industry growth.

Key Market Driver -

Introduction of the in-store pop-ups and events by the retail companies is expected to drive the market growth.

Key Market Restraint -

Huge competition from the local industry players is anticipated to restrain the market growth.

Key Players Covered:

The prominent players associated with the global food & grocery retail market are Walmart Inc., The Kroger Company, Amazon.com Inc., Costco Wholesale Corporation, 7-Eleven Inc., ALDI Einkauf GmbH & Co. oHG, Target Corporation, The Schwarz Group, Tecso Plc., AFK Sistema PAO, and others.

The global food & grocery retail market is segmented based on product type, category, distribution channel, and geography.

By product type, the global market is segmented into food and grocery. The largest share of the food segment is attributed to the large consumption of packed and unpacked food items by the people for their daily consumption needs. Additionally, changing consumer tastes and eating habits are further likely to support segmental growth. 

By category, the global market is segmented into packed and unpacked. Retailers largely prefer to stock packed grocery items to maintain such products' life span for a longer time duration. This makes the packed segment hold a major share of the market. Additionally, by consuming packed food items, people can save their time & effort for cooking the food items. This largely drives the revenues from the packed food items.

By distribution channel, the global food & grocery retail market is segmented into hypermarkets and supermarkets, convenience stores, online stores, and others. The hypermarkets & supermarkets segment is expected to exhibit a significant share of the market as users can shop a wide variety of grocery and food items at a single place in these stores. Additionally, the supermarket stores' discounted sale offers are likely to attract people towards visiting such stores, thereby supporting segmental growth.

Regional Analysis:

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By geography, the global food & grocery retail market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

The significant share of the Asia Pacific region is attributed to the large revenues from the food and grocery items in the countries such as China and India, resulting in the larger revenues from the Asia Pacific region. According to the data presented by the Food Export Association of the MidWest USA and Food Export USA, in 2019, retail sales of the packed food items in China reached USD 280.9 billion. Additionally, growing awareness regarding the availability of the different kinds of grocery and food items such as cosmetics products, bath and shower products, and others among the population is further driving the market growth in the region.

The Middle East and Africa region are anticipated to showcase considerable growth for the global market owing to the growing expansion of the prominent supermarket stores' companies such as LuLu Group International, AL Safeer International, Panda Retail Company, and others in the countries such as UAE, Saudi Arabia and South Africa. This is likely to support the consumption rate of such items in the region. For instance, Grandiose Supermarket LLC, a UAE-based supermarket chain, expanded its presence by introducing a new store in Masdar, Abu Dhabi. Moreover, the growing number of middle-class populations is further driving the growth of the market in the region.

Segmentation

Key Industry 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 number of food and grocery stores in U.S. and Canada.


• In June 2020, Instacart, an American retail company partnered with C&S Wholesale Grocers to offer e-commerce solution to the 3,000 independent C&S wholesale retailers in the U.S. This enabled partner company to expand its online presence in the U.S. market.