Food & Grocery Retail Market Size, Share, Growth, and Industry Analysis, By Type (Packaged Food, Unpackaged Food, Drinks, Tobacco, Household Products), By Application (Offline, Online), and Regional Forecast to 2032

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FOOD & GROCERY RETAIL MARKET OVERVIEW

The Food & Grocery Retail Market size was USD 11895277.68 Million in 2023 and is projected to reach USD 18354762.54 Million by 2032, exhibiting a CAGR of 4.94% during the forecast period 2024-2032.

The Food & Grocery Retail Market describes a category of business that caters to fundamental consumer demands, including an extensive range of products such as fresh foods and packaged ones, and even household items. The secondary has transformed radically as a result of consumer behavior evolution, improvement of technology, and emergence of advanced retail systems. Grocery and food retail not only provide access and availability of food but also play a major role in the economy by providing employment and providing auxiliaries to the economy. The market continues to evolve owing to trends such as the increasing health consciousness of consumers, consumerism, and rapid globalization.

GLOBAL CRISES IMPACTING FOOD & GROCERY RETAIL MARKET - COVID-19 IMPACT

"Food & Grocery Industry Had a positive impact Due to grocery retail surged online during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Food & Grocery Retail Market was considerably expanded due to the COVID-19 pandemic since the consumers’ attention was directed to basic needs due to lockdowns and restrictions leading to a surge in demand and a very expansive market. The increasing dependence of consumers and grocery retailers on e-commerce, grocery delivery services, and contactless shopping made retailers improvise within a very short period and improve their digital and logistic capabilities. This increase, on the other hand, stimulated the development of the rationing system of the sector, brought innovative ideas into the industry, and increased the clientele since many customers were able to practice online grocery shopping for ease and safety.

LATEST TREND

"The food retail market growth is driven by e-commerce innovations"

The food and grocery retail market is responding to an upsurge in e-commerce, external sustainability initiatives, and experiences that aim to encourage spending and consumption health-wisely. Particularly, the growing inclination towards purchasing groceries online has revolutionized the industry; firms have incorporated seamless buying through applications and a competent supply chain of delivery. This also answers consumer needs, which include ease of their work and saving their time; hence, online systems are very crucial. Thus, the market is witnessing increased consumer attention through digital-led initiatives that are more focused on customer experience and retention.

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FOOD & GROCERY RETAIL MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Packaged Food, Unpackaged Food, Drinks, Tobacco, Household Products

• Packaged Food: This category encompasses meals that are frozen or cooked, snacks, and foodstuffs in tins, which have gained much popularity because of their suitability and longer lifespan. Factors such as sophisticated lifestyles and innovations such as calorie-minimized and organic alternatives have caused a rise in the consumption of packaged foods. They are available in both brick-and-mortar and online grocery stores.

• Unpackaged Food: These are mainly health-oriented foods such as vegetables and fruits, meats, and bread products, which allow the customer to pick only a certain weight of the product they are willing to purchase. Such products are popular because of their availability without much processing, thus retaining their freshness. With increased health awareness adjectives, unpackaged foods still play an important role when it comes to grocery shopping behavior.

• Beverages: This classification consists of an assortment of drinks such as carbonated soft drinks, mineral water, and juices that suit both healthy and indulgent drinkers. Wellness drinks that come with added health benefits like vitamin drinks tended for them are very popular due to the current trend of people wanting to live healthy lives. The beverages segment is a value category that contributes a high share to the overall retail earnings.

• Tobacco: Tobacco is one of the vast categories in grocery retail, which is ranked of high value due to its great compliance yet consistent demand. This category has products such as cigarettes, smokeless tobacco, cigars, and pipe tobaccos, which are all limited to special consumer demographics. The industry declines in the volumes sold in some regions but proves to be sustained.

• Household Products: Items used in household settings, such as cleaning agents, cosmetics, and toiletries, are the market's core buying items. Most especially, these items were in great demand when the world went to clean mode owing to the pandemic. Such items encourage buyers to repurchase them often, hence forming an important component of the stock in shops.

BY APPLICATION

Based on application, the global market can be categorized into Offline & Online

• Offline: Consumers that can access supermarkets, hypermarkets, or local grocery shops still prefer food and grocery shopping from any of these channels. This is because it provides an opportunity for immediate product access and personal selection. This category in retail appreciates customer loyalty and convenience, more so with fresh and perishable items. Even with the proliferation of e-commerce, brick-and-mortar outlets still command a solid share of the primary markets, especially in the regions with weak digital coverage.

• Online: Online retail, especially in the food and grocery sector, has grown rapidly in the recent past thanks to the ease of use, ingredients, and even delivery without contacts where the customer does not have to move an inch. Thanks to mobile applications and other specific systems, the average consumer can stay in the house and order everything he or she needs without wasting time, enjoying this new personalized way of doing things. This approach also appeals to the younger generation, although the section is growing very fast because logistics and interfaces have become better.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Rising Consumer Demand for Convenience"

Consumer lifestyles have become more hectic in modern times with their preference for making shopping open-minded, enhancing the value placed. Today, such platforms and stores are valued that provide speed and ease in obtaining basic needs. Such changes have also enhanced the demand for online grocery delivery services as well as the establishment of eateries at strategic places.

"Increased Health and Wellness Awareness"

Due to the primary concern given to health and wellness, more consumers have started to purchase meals that are fresh, organic, and healthy. This is i-Table prompting retailers to increase the range of healthy products they offer in the retail space; this includes fresher produce as well as added value packaged healthier foods. Health-focused purchases have therefore become a crucial aspect influencing any retailing.

RESTRAINING FACTOR

"Supply Chain Disruptions"

There are hurdles in the Food & Grocery Retail Market due to the impacts of recurring supply chain disruptions that affect product availability and prices. Problems like transportation, labour, and raw material cost imbalance affect the stocking levels. These disruptions may result in business losses for the retailers and dissatisfaction for the customers.

OPPORTUNITY

"Increase in E-commerce and Digital Platforms"

Another factor that offers huge potential for the food and grocery retail market is the increase in use of e-commerce or mobile applications. Retailers can engage the consumers more effectively with their offerings using the available digital channels. This trend is more appealing in the developing economies where the penetration of online grocery is yet low, hence high growth possibilities are available.

CHALLENGE

"Intense Competition and Price Wars"

The food and grocery retail market comprise a highly competitive environment among market players where price competition is frequent and thus profits are thin. Competition is not limited to old players, but new ones trying to capture market share from already existing ones also face reduced prices. In such environments, there is a need to continually come up with new ideas and be more efficient so as to offer something different from what the competitors are offering in order to retain their customers.

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FOOD & GROCERY RETAIL MARKET REGIONAL INSIGHTS

• NORTH AMERICA

In terms of the food and grocery retail market, North America has a lion’s share owing to the region’s developed infrastructure, high levels of consumer disposable incomes, and a great focus on convenience and technology. The increase in the sector is also notable in the United States thanks to the presence of large retail chain chains and the incursion of e-commerce into the market. There is extensive provision of varieties of products and services within the food and grocery retail market in the United States as a result of changing trends in society. This has given rise to a healthy market that requires technological changes and hence investments most of the time.

• EUROPE

In the Food & Grocery Retail Market, the region is supported by the population and consumer tendencies as well as by the availability of a sustainable range of organic offerings. All these factors work together with the mix of clean and modernized grocery stores and traditional ones depending on cultural attitudes towards food. Moreover, the modern direction of development has also spurred growth in the industry as many players have focused on improving digital aspects to reach their customers. Also, the food quality and safety standards in Europe help build confidence with the consumers in the providing of such services.

• ASIA

Asia takes a leading role in the Food & Grocery Retail Market owing to the rapidly growing population and urbanization with the increasing purchasing power of the latter. The area is also a hybrid of modern outlets and traditional wet markets and takes into consideration different food styles and ethnic shopping outcomes. The sector is growing like a weed thanks to e-commerce, with a lot of consumers opting for grocery shopping on the internet as it is convenient and saves time. In addition, with the increasing standards of living, health concerns are rising, and this wipes out the low-quality food, which in turn increases the demand for organic, voracious growing markets like Asia.

KEY INDUSTRY PLAYERS

"Core industrialists drive market growth through innovation, technology, and sustainability trends"

The food & grocery retail market is being shaped by the actions of core industrialists as they devise new ways, offer lower prices, and provide more products. Technology investments were made by remnant retailers in order to enhance customers’ experiences, increase operational efficiency, and churn supply chains. Apart from that, they also set consumer trends on sustainability by advocating for health-exhausting organic and regional foods. Also, due to alliances and acquisition transactions, these companies are enabled to extend their markets and improve their online presence. Changing the structure of retailing considerably.

LIST OF TOP FOOD & GROCERY RETAIL COMPANIES

• Amazon - United States
• The Kroger Co - United States
• Carrefour - France
• 7-Eleven, Inc. - United States
• Target Brands, Inc. - United States

KEY INDUSTRY DEVELOPMENT

Feb 2024: A recent key development in the Food & Grocery Retail Market is Instacart's February 2024 initiative to accept EBT SNAP benefits for online grocery delivery across the U.S., making fresh groceries more accessible to low-income households. This pioneering move helps bridge food access gaps for SNAP participants, allowing them to order from a wide range of stores via Instacart’s platform.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Food & Grocery Retail Market is poised for a continued boom pushed by increasing health recognition, the growing popularity of plant-based diets, and innovation in product services. Despite challenges, which include confined uncooked fabric availability and better costs, the demand for gluten-unfastened and nutrient-dense alternatives supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Visitor Management System Software. As customer choices shift towards healthier and numerous meal options, the Food & Grocery Retail Market is expected to thrive, with persistent innovation and a broader reputation fueling its destiny prospects.