Global & Regional Food & Grocery Retailing, 2017-2022: Market Size, Forecasts, Trends, and Competitive Landscape
The global food & grocery sector reached US$8,045 billion in 2017 and it is forecast to grow at a CAGR of 6.8% over the next five years to reach US$11,204.5 billion by the end of 2022. Sales in the sector will be driven by positive economic factors globally, change in spending and consumption habits, inflation in grocery produce, improving disposable incomes, and investment by food & grocery retailers in modern and innovative retail formats - encouraging higher spend per head.
In 2017, APAC dominated the global food & grocery market, with a 48.1% share. A population of 3.4 billion (in 2017), growing urbanization, rising disposable incomes, declining unemployment levels, increasing double income households, and growing consumer confidence are the factors supporting growth of food & grocery sales in the APAC region over the next five years. The top five countries in the region - China, Japan, India, Indonesia, and South Korea - accounted for 90.9% of overall regional sector sales and are forecast to deliver combined growth of 62.9% between 2017 and 2022.
Convenience stores, including independents and gas stations, are the largest channel for food & grocery sales, skewed by its dominance in the APAC region. The channel is expected to grow at a CAGR of 8.7% during 2017-2022 to reach US$4,628.1 billion by 2022 - a 41.3% share. The rise in share is attributed to the continued change in consumers buying behavior, where in many markets shopping trips are becoming more frequent but smaller in value. Retailers with a core estate of larger format stores are expanding their presence by opening smaller convenience formats in urban areas to capitalize on the channel growth.
On the other hand, the emergence of e-commerce as a channel has widened product choices and increased accessibility to various local and international brands - impacting physical grocers that have been slow to grow their food ranges and promote them to customers. Though online penetration of the overall grocery market remained low at 1.6% (US$130.9 billion) in 2017, sales through the channel are forecast to almost triple over the next five years to reach a 3.1% share in 2022. This is being driven by retailer investment in the channel in response to increasing urbanization and the changing preferences of tech-savvy and time-poor consumers making their grocery purchases online due to its convenience and time saving qualities.
The "Global & Regional Food & Grocery Retailing, 2017-2022", report provides analysis of current and forecast market data for food and grocery retail sales globally.