The current valuation of the food and grocery retail market is US$ 12.4 trillion by 2024. The market valuation is estimated to be US$ 17.1 trillion by 2034, projected at a CAGR of 3.3%.
Growing awareness about health and wellness has spurred demand for organic, natural, and health-conscious food products. Retailers catering to these preferences are experiencing accelerated growth as they offer diverse nutritious options aligning with evolving dietary trends.
In the last five years, the food and grocery retail sector has shown steady growth, achieving a CAGR of 5.3% from 2019 to 2023. This period marked a surge in consumer demand driven by changing preferences, population growth, and the adoption of new shopping behaviors.
Innovation in technology, such as artificial intelligence (AI), data analytics, and the Internet of Things (IoT), propels efficiency and innovation across the food and grocery retail supply chain.
Despite technological advancements, the food and grocery retail market remains susceptible to supply chain disruptions caused by natural disasters, geopolitical tensions, and global health crises.
Intense competition, price wars, and aggressive marketing strategies can exert downward pressure on profit margins and limit growth opportunities for retailers.
Key Takeaways from the Market Study
- Based on product type, the fresh food is registered at a CAGR of 3.1% by 2034.
- The United States is expected to register at a CAGR of 1.4% by 2034.
- The United Kingdom registers significant growth, projected at a CAGR of 1.3% by 2034.
- Based on distribution channel, the supermarkets and hypermarkets segment is registered at a CAGR of 2.9% by 2034.
“The modern consumers, especially those with busy lifestyles, prioritize convenience in their shopping experience where the demand has led to the rise of various convenience-oriented solutions such as online grocery shopping, meal kits, and ready-to-eat options in-store, thus pushing the food and grocery retail market to grow,” says Nandini Roy Choudhury, Client Partner at Future Market Insights.
Competitive Landscape
Intense competition drives innovation, price competitiveness, and strategic acquisitions. Players leverage technology and customer-centric strategies to enhance offerings and capture consumers’ evolving preferences. Some of the key developments are:
- In January 2020, Walmart introduced Alphabot, a cutting-edge technology to enhance its grocery business. Alphabot streamlined picking, packing, and delivering online grocery orders, enabling Walmart to reinforce its position as America’s leading grocer and provided faster and more efficient service to shoppers.
- In September 2023, C&S Wholesale Grocers, LLC (C&S) acquired 413 stores, eight distribution centers, and two offices. These assets became available following the planned merger between Kroger Co. and Albertsons Companies Inc.
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
More Valuable Insights Available
Future Market Insights offers an unbiased global food and grocery retail market analysis, providing historical data from 2019 to 2023 and forecast statistics from 2024 to 2034
To understand market opportunities, the food and grocery retail market is segmented based on Product (Fresh Food, Frozen Food, Food Cupboard, Beverages, Cleaning & Household, Others), Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores, Online) and Region (North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and the Middle East and Africa).
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
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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