Food and Grocery Retail Market

Food and Grocery Retail Market Overview

Step into the progressive aisles of the food and grocery retail market, where every product tells a story of sustenance and satisfaction. Fresh off the press in FMI's new report, a culinary chronicle advancing the current valuation of USD 12.4 trillion in 2024. By 2034, the market could reach a valuation of USD 17.1 trillion, representing a sluggish CAGR of 3.3%.

Attributes	Details
Food and Grocery Retail Market Value for 2024	USD 12.4 trillion
Food and Grocery Retail Market Value for 2034	USD 17.1 trillion
Food and Grocery Retail Market Forecast CAGR for 2024 to 2034	3.3%

Analyzing the Historical Demand in the Food and Grocery Retail Market

Historical CAGR (2019 to 2023)	5.3%
Forecast CAGR (2024 to 2034)	3.3%

Over the past five years, the food and grocery retail market has been a beacon of moderate growth, with a historical CAGR of 5.3% from 2019 to 2023. The period witnessed an era of flourishing consumer demand, led by evolving tastes, expanding populations, and the emergence of new shopping habits.

A slightly tempered yet sluggish trajectory emerges as we peer into the crystal ball of forecasts. From 2024 to 2034, the anticipated CAGR of 3.3% suggests a market in transition, where factors like economic fluctuations, technological innovations, and changing consumer behaviors play important roles.

Key Factors Accelerating the Food and Grocery Retail Market

• The seamless integration of e-commerce platforms into the food and grocery retail sector has significantly boosted accessibility and convenience for consumers.
• Online shopping options and efficient delivery services have expanded the market reach and enabled retailers to tap into previously untapped customer segments.
• Growing consumer awareness about health and wellness has led to a surge in demand for organic, natural, and health-conscious food products.

Key Factors Hindering the Food and Grocery Retail Market

• Disruptions in the supply chain can lead to product shortages, increased costs, and logistical challenges, hindering market growth and profitability.
• Intense competition, price wars, and aggressive marketing strategies can exert downward pressure on profit margins and limit growth opportunities for retailers.
• Rapidly changing consumer preferences and shifting shopping behaviors pose challenges for traditional brick-and-mortar retailers.
• Consumers broadly prioritize convenience, variety, and personalized experiences, necessitating constant innovation and retailer adaptation to stay relevant in the market.

Category-wise Insights

The below section shows the leading segment. Based on product type, the fresh food segment is registered at a CAGR of 3.1% by 2034. Based on the distribution channel, the supermarkets and hypermarkets segment is registered at a CAGR of 2.9% by 2034.

Category	CAGR by 2034
Fresh Food	3.1%
Supermarkets and Hypermarkets	2.9%

Fresh Food Segment to Hold a Significant Share in the Market

Based on product type, the fresh food segment is registered to hold at a CAGR of 3.1% by 2034. The enduring appeal of the segment lies in its intrinsic value proposition of offering consumers access to wholesome, unprocessed produce, catering to the ever-growing demand for healthier dietary choices.

As consumers prioritize nutrition and freshness in their culinary pursuits, the fresh food segment remains a vital element of the market, sustaining its growth trajectory through a combination of quality offerings and evolving consumer preferences.

Supermarkets and Hypermarkets Segment to Hold a Dominant Share in the Market

Based on distribution channel, the hypermarkets and supermarkets segment is forecasted at a CAGR of 2.9% by 2034. Despite competition from e-commerce platforms and niche specialty stores, supermarkets and hypermarkets continue to thrive by offering convenience, variety, etc., solidifying their position as indispensable players in the food and grocery retail ecosystem.

As they navigate evolving consumer trends and technological advancements, supermarkets and hypermarkets remain steadfast in their commitment to delivering value and convenience, thus propelling their continued growth in the years to come.

Country-wise Insights

The table mentions the top five countries ranked by revenue, with South Korea holding the top position. The food and grocery retail market in South Korea thrives on innovation and convenience. Tech-savvy consumers urge demand, with retailers embracing digital strategies and omnichannel approaches.

Competition is fierce, prompting retailers to innovate with advanced technologies, enhance customer experiences, and fuel economic growth in this dynamic and vibrant sector.

Forecast CAGRs from 2024 to 2034

Countries	CAGR
The United States	3.5%
Canada	4.3%
China	3.9%
Japan	4.8%
South Korea	5.2%

Rising Affluence for Supermarkets and Hypermarkets Raise Greater Demand for Food and Grocery Retail in the United States

In the United States, the market serves as the cornerstone of the retail landscape, catering to consumers' diverse needs and preferences across the country.

From bustling supermarkets and hypermarkets to specialty grocery stores and online platforms, the market offers a wide array of options for consumers to access fresh produce, pantry staples, and gourmet delights.

With a strong emphasis on convenience, variety, and value, the market in the United States is utilized by consumers for their daily food shopping needs, as well as for special occasions and culinary indulgences.

Boom in Dietary Requirements and Preferences Find a Retaining Demand for Food and Grocery Retail in Canada

The market in Canada plays a central role in meeting the dietary requirements and preferences of the population. Canadian consumers rely on various retail outlets, including supermarkets, convenience stores, farmers' markets, and online grocery platforms, to access multiple food products, ranging from locally sourced produce to international delicacies.

With a focus on quality, freshness, and sustainability, the market caters to its multicultural palate, blending traditional favorites and innovative culinary offerings.

An Upsurge of Urban Population Raises the Demand in China

With a rapidly expanding urban population and rising disposable incomes, Chinese consumers have turned to supermarkets, hypermarkets, convenience stores, and online grocery platforms to fulfill their food shopping requirements.

The market offers diverse domestic and imported food products, catering to changing consumer preferences and lifestyle trends.

As the middle class expands and urbanization rates rise, the demand for high-quality, safe, and convenient food products is expected to propel further growth in the market.

Rise in Culinary Preferences Boom the Market in Japan

The market is characterized by a unique blend of tradition and innovation, catering to the culinary preferences of its discerning consumers.

The market is renowned for its meticulous attention to detail, with retailers offering a diverse array of seasonal produce, artisanal foods, and gourmet delicacies to satisfy the sophisticated tastes of consumers.

The market serves as a cultural institution, reflecting the nation's rich culinary heritage and traditions while embracing modern trends and influences.

Diverse Needs and Preferences of Tech-Savvy Consumers Improves the Market in South Korea

In South Korea, the food and grocery retail market is a dynamic and vibrant sector that caters to the diverse needs and preferences of its tech-savvy consumers.

The market is characterized by fierce competition and rapid technological advancements, with retailers leveraging digital technologies, data analytics, and omnichannel strategies to enhance the shopping experience and drive customer engagement.

The market in South Korea serves as a key driver of economic growth, supporting employment generation, infrastructure development, and foreign investment in the thriving retail sector of the country.

Competitive Landscape

With a keen eye on expansion and loyalty, these industry stalwarts are orchestrating a symphony of acquisition and promotional endeavors to fortify their foothold and forge enduring connections with customers.

The market is embarking on a technological transformation journey, leveraging cutting-edge innovations like blockchain and artificial intelligence (AI) to sculpt unparalleled customer experiences and refine the intricate dance of supply chain orchestration.

Some of the key developments

• In 2021, Sainsbury’s partnered with Amazon to introduce a groundbreaking concept of a just walk-out store. This innovative retail experience transformed the traditional grocery shopping model, allowing customers to seamlessly purchase items without the need to scan products or endure the typical wait in checkout lanes.
• In December 2021, Netto, a prominent discount grocery retailer and part of the esteemed Edeka Group, unveiled its inaugural Trigo’s hybrid store, a testament to the future of retail innovation.

Key Coverage in the Food and Grocery Retail Industry Report

• Adjacent Study on Food and Grocery Retail Market
• South Korea Food and Grocery Retail Market
• Food and Grocery Retail Market Size, Current Insights, and Demographic Trends
• Global Food and Grocery Retail Market Opportunities
• Key Strategies in the Global Food and Grocery Retail Market

Report Scope

Attributes	Details
Estimated Market Size in 2024	USD 12.4 trillion
Projected Market Valuation in 2034	USD 17.1 trillion
Value-based CAGR 2024 to 2034	3.30%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD trillion
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East and Africa
Key Market Segments Covered	Product, Distribution Channel, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Walmart; Costco Wholesale Corp.; 7-ELEVEN, Inc.; Amazon.com Inc.; The Kroger Co.; Target Brands, Inc.; ALDI; AEON Co Ltd; Carrefour CA; Schwarz Gruppe

Key Segments

By Product:

• Fresh Food
• Frozen Food
• Food Cupboard
• Beverages
• Cleaning & Household
• Others

By Distribution Channel:

• Supermarkets & Hypermarkets
• Convenience Stores
• Departmental Stores
• Online

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East and Africa

Frequently Asked Questions

What is the expected worth of the food and grocery retail market in 2024?

As of 2024, the market for food and grocery retail is expected to be valued at USD 12.4 trillion.

What is the market potential for food and grocery retail?

The food and grocery retail market is projected to expand at a CAGR of 3.30% between 2024 and 2034.

Which product type segment dominates the food and grocery retail market?

The fresh food segment is projected to dominate the industry.

What is the estimated market value for food and grocery retail in 2034?

By 2034, the market value of food and grocery retail is expected to reach USD 17.1 trillion.

Which country is likely to dominate the food and grocery retail market?

South Korea is likely the top-performing market, with a CAGR of 5.2%.