Global Grocery Retail Market - 2021-2028
Retail sales refer to the sale of goods directly to end consumers and the businesses involved in retail are called as 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 out in big cities of a country. These stores in USA are called ethnic markets and may also act as gathering places for immigrants. The total retail industry is a multi-trillion industry, in which grocery has the biggest share as it is deemed as necessary for consumers.
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. Transparency is the main focus of consumers at present concerning ingredients, price and certification. Consumers can easily compare all these features from different brands of the same product available in supermarkets independently which attracts them to buy products from grocery retails. The new trends that are shaping the market and will have long-term effects in the retail market are the rising of online grocery platforms, value of products and change in consumer lifestyle agendas drive demand through a focus on health, sustainability, and convenience food. Supermarkets and hypermarkets are more favored in big cities for grocery shopping due to the availability of personalized and commoditized products in the number of formats and channels, with an overabundance of choice.
Additionally, rapid economic growth of emerging markets such as China, India, Brazil and South Africa is driving the growth of the global grocery retail market due to the growth of middle-class consumers, increase in the number of working women, emerging rural market, entry of leading corporate sectors and technological impact. According to the Organization for Economic Co-operation and Development, more than half of the world's middle class are in Asia and Asian consumers account for more than 40 percent of global middle-class consumption. Grocery-organized retailers provide quality products at reasonable prices. For example, Walmart, Big Bazaar, etc. organize mega sales and provide various discounts to the consumers on regular basis. At present, the rural markets in emerging countries are facing intense competition in the retail sector also. For instance, in India, the retail industry is giving the country's biggest source of employment after agriculture and has the deepest penetration into rural India. Local corporate sectors have also penetrated the grocery retail industry considerably by opening retail stores in various local cities of emerging countries. For example, leading conglomerates in India such as Tata Group, Aditya Birla Group, and Reliance Industries have entered the retail sector.
In terms of the type of stores segment, the global grocery retail market is classified into supermarket & hypermarket, mom-and-pop groceries, convenience stores, greengrocers, online retail and others. The supermarkets and hypermarkets held the largest share of over XX% in 2020 due to the convenience of shopping under a single roof. Other factors, such as price discounts, convenience in shopping and availability of quality products are driving the growth of supermarkets. Furthermore, e-commerce retail is expected to have the highest growth rate due to growing smartphone adoption, convenience in ordering from home and recent necessity due to the Covid-19 pandemic.
Asia-Pacific is the largest market for grocery retail, with nearly XX% of the global sales revenue in 2020, due to the presence of a huge consumer base mainly in China and India, rapid economic advancement, rise in per capita income and investment from leading local and foreign retail companies. China and India are the 2nd and 3rd largest grocery retail markets globally owing to their huge population base and demand for various food products. According to industry insiders, China is expected to overtake the US to become the largest grocery market by 2023 in terms of value. The country's total market size is over XX billion.
North America is the second dominating region in terms of value in the global grocery retail market due to the presence of leading international retail market players, the dependence of consumers on supermarkets and overall economic development as well as technological innovation.
The global grocery retail market is moderately fragmented with large number of players present in North America and trying to expand their market in to emerging countries of Asia-Pacific countries. For instance, Walmart's acquisition of Indian e-commerce retail platform Flipkart and aggressive investment from Amazon in Indian retail market are some of the examples of this trend. The market competition is intense owing to the merger & acquisition as well as adoption of e-commerce platforms. Walmart Inc., Carrefour Group, Koninklijke Ahold N.V., Metro AG, Kroger Co., Tesco Plc., Rewe, Costco Wholesale Corporation, Aldi Stores Limited and ITM enterprises are some of the largest retail grocers in the global market
Whole Foods Market is opening 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.
Dollar General said it is going to expand its stores up to 10,000 over the next several years, up from 1,300 stores at present, as it moves closer to operate as a grocer in more of the communities where it operates.
As the French multinational's biggest market outside France, Carrefour Brazil sells over 25 million units per year in 817 storefronts. The forward-thinking company is expected to become the major e-commerce grocery provider in France as part of its digital transformation strategy.
The Covid-19 pandemic had forced many retail enterprises to apply technologies into the grocery retail industry due to the strict lockdown situation in many countries worldwide. The Covid-19 pandemic has changed the consumer's behavior from going personally to retail stores, to shopping online. This has generated new types of consumers which is forcing many retail companies to focus on e-commerce platforms. For instance, according to the industry experts, while online sales had 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.
The global grocery retail market report would provide an access to approximately 45 market data tables, 45 figures and 180 pages.