Food Grocery Retail Industry Overview
The global food grocery retail market size was valued at USD 11,324.4 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 3.0% from 2022 to 2030.
The growth can be primarily attributed to COVID-19 lockdown-induced higher spending on groceries, increased online-grocery sales volume, and consumer polarization. The pandemic resulted in the emergence of consumer polarization where some consumers scaled up to purchase expensive products. Furthermore, the pandemic-induced increased cooking at home has been a major growth driver for the market growth. The COVID-19 pandemic has altered the food and grocery retail industry.
Gather more insights about the market drivers, restrains and growth of the Global Food Grocery Retail Market
During the first wave of the pandemic, customers rushed to stock up on groceries, both in stores and online, while restaurants, businesses, and schools were largely closed in most nations. For instance, according to Public Health England’s report “Impact of COVID-19 Pandemic on Grocery Shopping Behaviours”, grocery sales surged by nearly 11.1% in the U.K. when the first shutdown began in March 2020 up to the week ending June 2020, compared to the same period in 2019. Because of the market volatility caused by the COVID-19 pandemic, grocery retailers were forced to restructure their supply chains, explore private-label goods, and expand their supplier networks to meet consumer demand.
The supermarket business has been driven to digitalization by omnichannel mass merchandisers. The seamless omnichannel strategies have led to revolutionary trends in the global market. This trend was expedited by Amazon’s strategy of acquiring brick-and-mortar establishments to merge e-commerce and physical storefronts. Amazon’s acquisition of Whole Foods cemented its position as a major player in the supermarket market. Amazon was able to connect Amazon.com and Whole Foods as a result of this acquisition, providing a variety of delivery options as well as other advantages of online food shopping. The emergence of new delivery models has also propelled market growth.
Consumers are driving the development and acceptance of new grocery delivery models to match their retail and service consumption patterns. New delivery methods like Buy Online Pickup In-Store (BOPIS), curbside pickup, and direct-to-door are becoming more popular, indicating a shift in customer behavior. One- to two-day delivery is becoming more widespread, and it has the propensity to elevate delivery expectations. Inaccurate delivery estimates have a detrimental influence on customer loyalty and retention. Therefore, grocers are redesigning brick and mortar stores to optimize their Food Grocery Retail investments to accommodate these new consumption models, as subscription services and direct-to-consumer models grow in popularity.
There is an emerging trend wherein individuals are resorting to cooking international cuisines at home, to recreate the experience of traveling and vacationing. This has driven the demand for the food cupboard segment. Food cupboard staples like curry pastes and spice mixes offer amateur home cooks a shortcut to flavor-filled meals. Hence, food cupboard products have become an important and lucrative sector for specialty shops to pursue, as the home cooking trend grows and along with it the demand for ingredients that will add something unique to a normal dish. Furthermore, innovations in delivery models have propelled the segment growth. For instance, in China, Alibaba’s 232 Freshippo (Hema) stores were built with delivery as a top emphasis.
In the stores, often known as Hema, pickers who frequently outnumber shoppers, walk between reduced aisles to gather food and send them to an in-store packing station on conveyor belts. Scooter couriers then deliver the orders, frequently in under 30 minutes. Personalized customer experience is another significant factor driving the growth of the global market. Consumer preference is still heavily influenced by the shopping experience. According to Oracle’s Grocery Retail survey, carried out in 2020, 71% of customers exhibited speedy checkout as a top priority, followed by informed staff (57%).
To enhance customer experience, many leading retailers in the U.S., such as Hannaford, are using technology to manage and sync their retail operations from the back-end, which include supply chain, employee scheduling, and stock replenishment, to the front-end tasks, such as tracking purchases and providing real-time personalized product recommendations while the customer is shopping. The technology facilitates e-commerce while simultaneously driving the in-store experience for the consumers.
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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:
- Food Grocery Retail Product Outlook (Revenue, USD Billion, 2017 - 2030)
- Fresh Food
- Frozen Food
- Food Cupboard
- Beverages
- Cleaning Household
- Others
- Food Grocery Retail Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)
- Supermarkets Hypermarkets
- Convenience Stores, Departmental Stores Clubs
- Online
- Food Grocery Retail Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- Europe
- Asia Pacific
- Central South America
- Middle East Africa (MEA)
Key Companies profiled:
Some prominent players in the global Food Grocery Retail market include
- Walmart
- Costco Wholesale Corp.
- 7-Eleven, Inc.
- Amazon.com, Inc.
- The Kroger Co.
- Target Brands, Inc.
- ALDI
- AEON Co Ltd.
- Carrefour CA
- Schwarz Gruppe
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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