Food & Grocery Retail Market Growth & Trends
The global food & grocery retail market size is expected to reach USD 14.78 trillion by 2030, registering a CAGR of 3.0% over the forecast period, according to a new report by Grand View Research, Inc. Shifting consumption expenditure from food service to food retail due to the COVID-19 pandemic-induced lockdowns, rising adoption of online channels for grocery purchases, and consumer polarization brought about by income changes are the primary factors leading to market growth. The COVID-19 pandemic resulted in unprecedented shifts in the food and beverage industry. With some restaurants closed and others were open only for takeaway or delivery, the majority of meals were consumed at home, particularly in locations where strict lockdown regulations were in place.
This resulted in unexpected fluctuations in grocery sales, and changing consumer preferences were visible in real-time through empty supermarket shelves. The recessionary pantry-stocking, nostalgic and decadent foods like confectionery, desserts, and salty snacks saw a surge in sales. Customers were willing to forego national brands in favor of retail brands and private label alternatives. The global market for beverages is expected to become the fastest-growing product segment during the forecast period. The segmental growth is credited to the launch of new products in the non-alcoholic beverage segment, which includes cocktail mixers, seltzers, non-alcoholic beer, and energy drinks among others.
The introduction of such diverse products coupled with the emergence of online sales of alcoholic beverages in developing economies is expected to be the major factor propelling the segment growth. The online distribution channel is expected to register the fastest CAGR during the forecast period. Even among baby boomers, digital orders for grocery purchases have become increasingly popular. Furthermore, the integration of online channels with brick-and-mortar stores is beginning to gain prominence. Asia Pacific dominated the global market in 2021 and is expected to maintain its dominance during the forecast period. The increasing number of working individuals coupled with the rising disposable income and convenient accessibility of supermarkets & grocery stores is the key driver of the regional market.
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Food & Grocery Retail Market Report Highlights
The food cupboard segment accounted for the largest share of the global market in 2021 due to the increased at-home food consumption
The supermarkets & hypermarkets distribution channel segment dominated the global market in 2021
The growth can be credited to a large number of stores present across the world and a wide variety of products offered at a single place by these stores
Asia Pacific is expected to be the fastest-growing regional market during the forecast period. The rapid adoption of online channels and its integration with brick-and-mortar stores for the purchase of food and grocery is expected to be the major factor driving the regional market
Moreover, the growing number of internet users and the high proliferation of mobile app users are expected to boost the online sales of food and grocery in the APAC region
The global market is fragmented with the presence of several global players as well as local & regional players
