Food Retail Market Overview
Food Retail Market Size is estimated to reach $1,136.2 billion by 2027 and it is poised to grow at a CAGR of 3.1% over the forecast period of 2022-2027. Food retail stores are the retailers or wholesaling retail chains that generally stock grocery items, vegetables, uncooked meat products, frozen products and daily needs like personal care, spices, snacks, sweets and others on the minimum operating margin. As per the State of Grocery Consumer Survey conducted in 2021, 37% of consumers plan to look for ways to save money while grocery shopping. The groceries are distributed in supermarkets, hypermarkets, warehouse stores and convenience stores. Also, increasing internet penetration across the world and the digitalization of business create a new opportunity for the food retail industry. Furthermore, the increased spending capacity of boomers and millennials represents $140 billion and $600 spending power, according to Insider-intelligence in 2022. According to Insider-intelligence, in 2022, worldwide retail sales are poised to grow 5% year-over-year (YoY) to exceed $27.33 trillion. Such increasing demand for retailers in the world helps to drive Food Retail Industry over the forecast period 2022-2027.
Food Retail Market Report Coverage
The report: “Food Retail Market Forecast (2022-2027)" by Industry ARC, covers an in-depth analysis of the following segments in the Food
Retail Market.
Key Takeaways
- Geographically, North America held a dominant market share in the year 2021, owing to the large chain of food retailers present in this region and the high expenditure capacity of consumers.
- The Food Retail Market is predicted to increase owing to the increasing number of the food market, the network of supply chain, various offers & discounts on wholesaling grocery items and the adoption of advanced technology in the Food Retail Market with better customer relationship management.
- However, the labor shortage and disruption in the supply chain limit market growth over the forecast period 2022-2027.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Food Retail Market Report.
Food Retail Market: Market Share (%) by region, 2021
Food Retail Market Segment Analysis - by Category
Food Retail Market based on the category can be further
segmented into Packed, Unpacked. The Packed segment held a dominant market
share in the year 2021 and is estimated to grow with
the fastest CAGR of 4.4% over the forecast period 2022-2027. This
is owing to the growing demand for packed food in various distribution
channels. Demand for packed food is increased owing to its benefits as it
prevents & reduces food damage and product spoilage. Also, packed food saves
energy and vital nutrients and protects the health of consumers. According
to the 2022 Food and Health Survey by International Food Information Council
(IFIC), with 1,005 adults ages 18–80, found nearly 1 in 3 (31%) said they’ve
been eating more protein from whole-plant sources this year, with other
increases including people reporting consuming more soy-based milk/yogurt (18%)
and other plant-based dairy alternatives (23%). Such growing demand for healthy
food drive demand for packed food and fuel growth of the Food Retail Market Share over the forecast period 2022-2027.
Food Retail Market Segment Analysis - by Distribution Channel
Food Retail Market based on the distribution channel can be
further segmented into Physical Stores (Supermarkets, hypermarkets, Warehouse
Stores, Convenience Stores and Others) and Online Stores. The Physical Stores segment
held a dominant market share in the year 2021 and is also estimated to grow with the fastest CAGR of 4.7% over
the forecast period 2022-2027. This
is owing to the increasing popularity of physical stores by consumers and
increasing sales in the wholesaling store in recent years. According to
NilsenIQ, American information, data and market measurement firm, the sale of
convenience stores touches $97 billion in 2021 and in the U.S there is a total
of 1,48,026 convenience stores. As per convenience store news in 2021, 67% of
shoppers visit convenience stores once a week or more. Owing to the increasing
number of convenience stores and rising preference of consumers towards
convenience stores fuels the growth of the Food Retail Market Size over
the forecast period 2022-2027.
Also, according to KMPG ‘Klynveld Peat Marwick Goerdeler’ survey, the U.S., spending on grocery sales is anticipated to rise by more than 14%, in 2022 the
average monthly grocery sales are at $611 and in 2021 it is $532. Such
increasing consumer spending on retail food and the rising number of
supermarket stores all over the world drive Food Retail Market Size.
Food Retail Market Segment Analysis- by Geography
North America held a dominant market share of 39% in the year
2021. This is owing to the increasing number of food retailers that offer wholesaling
prices for goods on minimum operating margin with the support of customer
relationship management and the help of a strong supply chain in this region.
According to the Economic Research Service of the U.S., Department of
Agriculture, there are more than 1,15,526 retail food stores in the U.S., in
2021. As per data by Scarp-Hero, Family Dollar, Dollar Tree and Walmart are the
top three largest grocery chains & supply chains in the U.S., in 2022,
based on their number of locations. Family Dollar is the largest grocery chain
present in 22 out of 56 states with 8,148 locations in the U.S., such an increasing
number of the grocery store and well-built supply chain & operating
margin in this region support growth of the Food Retail Market Share in the
North America region.
Furthermore, Asia-Pacific is estimated to grow with the fastest CAGR over the forecast period 2022-2027 as a result of the large consumer base in this region. According to Oxford Economics, the rising trend of domestic visitors in New Zealand, Malaysia, Indonesia, Vietnam and Australia is expected to lead the Food Retail Market with over 20% growth in 2022. According to Invest India, National investment promotion & facilitation agency, the growth of the organized food and grocery retail market to reach $60 billion by 2025. Also increasing government support for food retail with 100% foreign direct investment and other schemes like ‘Mega Food Park’ support market growth. Such factors help to grow Asia-Pacific Food Retail Market Share.
Food Retail Market Drivers
Increasing Per Capita Income and Demand for Organic Food Helps to Drive Market Growth.
The increasing per capita income in developed and developing countries and demand for organic food owing to an increase in consumer awareness about the health hazard of conventional practice produce helps to drive the market. According to, the OECD organization, global per capita income is in the range of $10 to $100. With the increase in purchasing power parity (PPP) in developed countries, the consumer prefers healthy food for consumption. Organic food consumption is highest in European countries and the top three organic food-consuming European countries are Denmark, Sweden and Switzerland. Consumers willing to pay a 244% price premium for organic chicken breast certified by the U.S., Department of Agriculture were discovered to be willing to pay a price premium of 244% for organic chicken breast (USDA). Such an increase in the spending capacity of consumers and preference for organic produce helps to drive the Food Retail Industry.
Increasing Consumer Awareness and Demand for Extended Shelf Life of Products Drive Market Growth.
Consumers are highly aware of health-related issues after
consumption of unhealthy junk food, however, they preferred fresh food and food
products by spending extra, which are beneficial for health. As per the Center
for Disease Control and Prevention (CDC), more than 67.3% of adults consumed
fruit each day in the U.S., In 2021, online sales of packaged food and
beverages hit $109 billion, as per Food Industry Association. Also, consumption
of unhealthy food increases problems of obesity all over the world. The world's
obsess population goes up to $2 billion in adults by the year 2021 as per our data-in-world statistics.
The increasing prevalence of obesity invites many other diseases with eating such
as Cardiovascular Diseases, Hypertension, Blood pressure, Infertility and
others and nowadays consumers are well known for this fact, resulting in the consumption
of healthy, fresh food products which helps to drive Food Retail Industry.
Food Retail Market Challenge
Shortage of Labour and Disruption in Supply Chain Owing to Covid-19 is Hampering Market Growth
The food retail industry needs a high number of workers to perform
tasks from post-harvest processing to selling of products. Nowadays many industries
suffer from labor shortages as a result of covid infections and a lack of
skilled labor. According to Randstad, a global leader in the HR service
industry, an estimated shortage of 85 million workers around the globe by 2030.
Such a shortage of workforce leads major market players toward industrial
automation and digitalization. Also, Global Supply Chain Pressure Index data from
January to April 2022 showed that delivery time and transportation costs
majorly affected the supply chain. Such factors may hamper Food Retail Market Size over the forecast period 2022-2027.
Food Retail Industry Outlook:
Product launches, mergers and acquisitions, joint ventures and
geographical expansions are key strategies adopted by players in the Food
Retail Market. The top 10 companies in the Food Retail Market are:
- Walmart
- Costco Wholesale Corp.
- 7-ELEVEN Inc.
- Amazon Inc
- The Kroger Co.
- arget Brands Inc.
- ALDI
- AEON Co. Ltd.
- Carrefour CA
- Schwarz Gruppe
Recent Developments
- In June 2022, Costco Wholesale Corporation, completed a purchase for $1.05 billion by a wholly-owned subsidiary of the 45% minority interest in Costco-Taiwan, a joint venture. The Company now indirectly owns all of Costco Taiwan. Costco currently operates 833 warehouses, including 574 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China and one in Iceland.
- In June 2022, The Kroger Cooperation, America's largest grocery retailer, announced the availability of Korger Deliver Service, for customers in South Florida with the opening of a new spoke location in Miami. The 60,000-square-foot spoke facility, in collaboration with the Fulfillment Center in Groveland, FL, serves a last-mile cross-dock location that efficiently expands Kroger Delivery's ability to serve more customers.
- In May 2021, 7-Eleven Inc. the largest chain in the convenience-retailing industry announced the completion of its acquisition of Speedway, a leading convenience store chain, from Marathon Petroleum Corp. Speedway's high-quality portfolio, includes approximately 3,800 stores located in 36 states across the U.S.
Relevant Titles
Report Code: ITR 80297
Report Code: ITR 0337
Report Code: ITR 0047
LIST OF TABLES
1.Global Food Retail MARKET, BY TYPE Market 2023-2030 ($M)1.1 Internet Sales Market 2023-2030 ($M) - Global Industry Research
1.2 Store Sales Market 2023-2030 ($M) - Global Industry Research
2.Global Food Retail MARKET, BY TYPE Market 2023-2030 (Volume/Units)
2.1 Internet Sales Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 Store Sales Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Food Retail MARKET, BY TYPE Market 2023-2030 ($M)
3.1 Internet Sales Market 2023-2030 ($M) - Regional Industry Research
3.2 Store Sales Market 2023-2030 ($M) - Regional Industry Research
4.South America Food Retail MARKET, BY TYPE Market 2023-2030 ($M)
4.1 Internet Sales Market 2023-2030 ($M) - Regional Industry Research
4.2 Store Sales Market 2023-2030 ($M) - Regional Industry Research
5.Europe Food Retail MARKET, BY TYPE Market 2023-2030 ($M)
5.1 Internet Sales Market 2023-2030 ($M) - Regional Industry Research
5.2 Store Sales Market 2023-2030 ($M) - Regional Industry Research
6.APAC Food Retail MARKET, BY TYPE Market 2023-2030 ($M)
6.1 Internet Sales Market 2023-2030 ($M) - Regional Industry Research
6.2 Store Sales Market 2023-2030 ($M) - Regional Industry Research
7.MENA Food Retail MARKET, BY TYPE Market 2023-2030 ($M)
7.1 Internet Sales Market 2023-2030 ($M) - Regional Industry Research
7.2 Store Sales Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Food Retail Global Market Revenue, 2023-2030 ($M)2.Canada Food Retail Global Market Revenue, 2023-2030 ($M)
3.Mexico Food Retail Global Market Revenue, 2023-2030 ($M)
4.Brazil Food Retail Global Market Revenue, 2023-2030 ($M)
5.Argentina Food Retail Global Market Revenue, 2023-2030 ($M)
6.Peru Food Retail Global Market Revenue, 2023-2030 ($M)
7.Colombia Food Retail Global Market Revenue, 2023-2030 ($M)
8.Chile Food Retail Global Market Revenue, 2023-2030 ($M)
9.Rest of South America Food Retail Global Market Revenue, 2023-2030 ($M)
10.UK Food Retail Global Market Revenue, 2023-2030 ($M)
11.Germany Food Retail Global Market Revenue, 2023-2030 ($M)
12.France Food Retail Global Market Revenue, 2023-2030 ($M)
13.Italy Food Retail Global Market Revenue, 2023-2030 ($M)
14.Spain Food Retail Global Market Revenue, 2023-2030 ($M)
15.Rest of Europe Food Retail Global Market Revenue, 2023-2030 ($M)
16.China Food Retail Global Market Revenue, 2023-2030 ($M)
17.India Food Retail Global Market Revenue, 2023-2030 ($M)
18.Japan Food Retail Global Market Revenue, 2023-2030 ($M)
19.South Korea Food Retail Global Market Revenue, 2023-2030 ($M)
20.South Africa Food Retail Global Market Revenue, 2023-2030 ($M)
21.North America Food Retail Global By Application
22.South America Food Retail Global By Application
23.Europe Food Retail Global By Application
24.APAC Food Retail Global By Application
25.MENA Food Retail Global By Application