Global grocery market to increase US$2.2 trillion in sales by 2024
The global grocery retail market is forecast to generate an additional US$2.2 trillion in sales by 2024. An IGD report highlights growth in China and outlines drivers of growth in upcoming years.
Various regions pointed to the expected growth of online grocery shopping.
For instance, North America is currently experiencing a "period of rapid expansion" in online sales, states IGD Canada's Stewart Samuel.
Similarly, in China online grocery will "grow in importance across all markets", according to IGD's head of Asia Nick Miles. Europe also expects that online spending will benefit the industry in the future.
Apart from online sales, different regional preferences point to different drivers of growth. Across the world, convenience stores, online shopping, or discount supermarkets underpin retail sales.
For Asia, that growth is anticipated to come from convenience and online grocery sales. Asian markets will be booming in the next few years, demonstrate IGD's predictions. It will account for 50% of all new sales between now and 2024.
“Asia’s importance to the global grocery market will continue to grow, with eight of the top 20 largest markets set to be in the region in five years’ time," says Miles. In particular, China, Japan and Indonesia will account for a majority of new grocery sales. IGD expects China to overtake the U.S. by 2022 to become the largest grocery market in the world.
IGD's global market growth predicts that China will grow by 32.2%. India also stands out as a growing grocery market and is expected to see a 47% increase in sales.
Growth in Europe and the Americas
In Europe, Germany and Spain are outliers for potential growth in the sector. Combined, Germany, France, Italy, Spain and the UK will account "for nearly two-thirds of all new sales generated" in the region, notes head of EMEO Jon Wright.
"Discounters and the online channel are set to be the key drivers of growth to 2024, with both gaining share versus established channels like hypermarkets and supermarkets. In discount, the continued expansion of regional retailers like Aldi and Lidl will underpin growth," he adds.
Differently from other markets, "cash and carry" channels will drive growth in Latin America. In the past, the grocery industry has seen a slight slowdown. However, it expects to "bounce back in the short term", says the report. A majority of retail growth in the region will come from Brazil as the country makes up two-thirds of sales.
In contrast, the fastest-growing channels in North America will be online grocery and discounters. However, the market expects to see slower growth from the region because it is a mature market. While that is true, the steady pace of the market means it will still generate 12% of new sales to 2024.