Food & Grocery Retail Market Revenue Analysis, Development Opportunities and Forecast

San Francisco, Calif., USA, May 12, 2023 — /EPR Network/ —

Food & Grocery Retail Industry Overview

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.

Food & Grocery Retail Market Segmentation

Grand View Research has segmented the global food & grocery retail market on the basis of product, distribution channel, and region:

Based on the Product Insights, the market is segmented into Fresh Food, Frozen Food, Food Cupboard, Beverages, Cleaning & Household, and Others

• The food cupboard segment held the largest market share of more than 37.5% in 2021.
• The surge in cooking and baking activities, predominantly noticed among Generation Z consumers has led to an increased demand for the food cupboard segment in recent years.
• Nutrition and provenance have become increasingly important in the fine food industry in recent years, but the demand for high-quality, long-lasting food cupboard ingredients is expected to increase over the coming years, as more customers shop locally and less frequently.
• However, the beverages segment is projected to register the fastest growth during the forecast period. The off-trade purchases of beer, wine, and non-alcoholic beverages shot up due to the closure of restaurants, bars, pubs, and cafes during the pandemic.
• The altered consumer habits of consumption of beverages at home are expected to drive the segment growth during the forecast period.

Based on the Distribution Channel Insights, the market is segmented into Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores & Clubs, and Online

• The supermarkets & hypermarkets segment led the market in 2021 and accounted for the largest revenue share of more than 64.00%. The high number of supermarkets and hypermarkets across the globe is the primary factor for its large market share.
• The convenient shopping experience of having a plethora of food and beverage items in a single place is one of the key factors that drive consumers to visit their nearby supermarkets and hypermarkets.
• The online delivery channel is expected to register the fastest CAGR from 2022 to 2030 due to the emergence of shopping trends brought about by the pandemic.

Food & Grocery Retail Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The market is fragmented with the presence of many global and regional players. These players are engaging in major acquisition and promotional activities to increase their customer base and brand loyalty. Furthermore, these players are harnessing new technologies, such as blockchain and AI, to enhance customer experience and streamline their supply chain activities. For instance, in 2021, U.K. grocer, Sainsbury’s, teamed up with Amazon to test a “just walk out” store, where it is possible to buy groceries without having to scan items or wait in the check-out lanes.

Some prominent players in the global Food & Grocery Retail market include:

• Walmart
• Costco Wholesale Corp.
• 7-Eleven, Inc.
• com, Inc.
• The Kroger Co.
• Target Brands, Inc.
• ALDI
• AEON Co Ltd.
• Carrefour CA
• Schwarz Gruppe

Order a free sample PDF of the Food & Grocery Retail Market Intelligence Study, published by Grand View Research.