Grocery Retail Market Size
Global Grocery Retail Market reached USD 8,695 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 14,772 billion by 2031. The market is growing at a CAGR of 6.9% during the forecast period (2024-2031). Retail sales refer to the sales of goods directly to end consumers and the businesses involved in retail are called retailers.
Retail grocery includes stores such as Mom-and-Pop stores, supermarkets, hypermarkets, specialty fruit and vegetable stores, and online grocery platforms. Supermarkets and hypermarkets generally stock substantial amounts of non-food products, such as clothing and household items, which also attracts many consumers to spend time within the store.
Small grocery stores mainly focused on selling fruits and vegetables are known as greengrocers. Some groceries focus on the foods of certain countries or regions such as Chinese, Italian, Middle Eastern, or Polish, and are mainly found in big cities of a country. These stores in the USA are called ethnic markets and may also act as gathering places for immigrants.
Market Summary
| Metrics | Details |
| CAGR | 6.9% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Type of Store, Product, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | Asia Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Convenience is The Key Factor Driving Consumers Toward Retail Grocers
Various consumer-oriented features of grocery retail stores such as fair price, quality, and variety of products as well as convenience are driving the attractiveness of grocery retail among consumers, which drives the growth of the global grocery retail market. According to a survey conducted by the National Retail Federation in 2021, 35% of consumers reported that they had used curbside pickup for groceries in the past year, up from 13% in 2019. Additionally, the same survey found that 23% of consumers had used home delivery services for groceries, up from 16% in 2019.
Market Segment Analysis
The global grocery retail market is segmented based on type of store, product, and region.
Supermarkets And Hypermarkets Segment Is Expected To Dominate The Type Of Store Segment Owing To The Attractive Shopping Experience
The supermarket and hypermarket segment is expected to hold the largest market share in the grocery retail market due to several factors, including their established presence, wide product range, and ability to offer competitive prices. One indicator of the importance of supermarkets and hypermarkets in the grocery retail market is their revenue. According to Statista, in 2022, global revenue from supermarkets and hypermarkets was approximately D 27.34 trillion. This represents a significant portion of the total grocery retail market, indicating the dominance of this segment.
Market Geographical Share
Asia-Pacific is the Largest Market In Grocery Retail Market
The Asia Pacific region holds the largest market share in the grocery retail market due to several factors, including its large population, growing middle class, and increasing urbanization. One of the main factors contributing to the dominance of the Asia Pacific region in the grocery retail market is its large population. According to the United Nations, the population of Asia was approximately 4.6 billion in 2020, accounting for more than 60% of the world's population. This large consumer base provides a significant market opportunity for grocery retailers operating in the region.
Companies and Competitive Landscape
The major global players include the Grocery Retail market are Walmart Inc., Carrefour Group, Koninklijke Ahold N.V., Metro AG, Kroger Co., Tesco Plc., Rewe, Costco Wholesale Corporation, Aldi Stores Limited, and ITM enterprises.
COVID-19 Impact on Market
The Covid-19 pandemic had forced many retail enterprises to apply technologies to the grocery retail industry due to the strict lockdown situation in many countries worldwide. For instance, according to industry experts, while online sales accounted for only 3 to 4 percent of the USA grocery market in 2019, the share could be increased up to 10 percent by 2025, as leading retailers, including well-funded enterprises from outside the sector, invest in automation and innovative operating models to solve challenges in fulfillment and last-mile delivery.
AI Impact
Artificial Intelligence (AI) is having a significant impact on the grocery retail market, improving efficiency, personalization, and customer experience. AI is also being used to personalize the shopping experience for customers. By analyzing customer data such as purchase history and browsing behavior, AI algorithms can provide targeted product recommendations and promotions, improving customer engagement and loyalty. According to a survey by Salesforce, 51% of grocery retailers are currently using AI to personalize the customer experience.
Russia-Ukraine War Impact
The ongoing conflict between Russia and Ukraine has had an impact on the grocery retail market in both countries. The conflict has resulted in economic sanctions, trade restrictions, and geopolitical tensions that have affected the grocery retail industry in various ways. According to a report by Euromonitor International, the Russian grocery retail market experienced supply chain disruptions and shortages of imported products, including fresh fruits and vegetables, in the aftermath of the conflict.
Key Developments
- In May 2022, Hero Bread announced the nationwide retail debut of their ground-breaking, healthier bread and baked items. Hero Bread is increasing distribution from 23 to 2,300 grocery retail shops, with more growth anticipated in the second half of the year. This expansion is being driven by a tremendous 54% consumer repeat purchase rate in the first five months on grocery shelves.
- 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.
- In June 2021, Whole Foods Market opened a hyper-local flagship store in Tampa, Florida, USA, as the company accelerates its expansion plans into 2022. It is planning to open a new 48,000-square-foot store at the intersection of Dale Mabry Highway and Midtown Drive, 3740 Midtown Drive, in Tampa.
Why Purchase the Report?
- To visualize the global grocery retail market segmentation based on the type of store, and product type and understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous grocery retail market-level data points all for segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global grocery retail market report would provide approximately 53 tables, 51 figures, and 102 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
