The global food & grocery retail market size is expected to reach $14.78 trillion by 2030, registering a Compound Annual Growth Rate of 3.0 percent over the forecast period, according to a new report from Research and Markets.
Shifting consumption expenditure from food service to food retail due to the COVID-19 pandemic-induced lockdowns, rising adoption of online channels for grocery purchases, and consumer polarization brought about by income changes are the primary factors leading to market growth.
The COVID-19 pandemic resulted in unprecedented shifts in the food and beverage industry. With some restaurants closed and others were open only for takeaway or delivery, the majority of meals were consumed at home, particularly in locations where strict lockdown regulations were in place.
This resulted in unexpected fluctuations in grocery sales, and changing consumer preferences were visible in real-time through empty supermarket shelves. The recessionary pantry-stocking, nostalgic and decadent foods like confectionery, desserts, and salty snacks saw a surge in sales. Customers were willing to forego national brands in favor of retail brands and private label alternatives.
The global market for beverages is expected to become the fastest-growing product segment during the forecast period. The segmental growth is credited to the launch of new products in the non-alcoholic beverage segment, which includes cocktail mixers, seltzers, non-alcoholic beer, and energy drinks among others.
The introduction of such diverse products coupled with the emergence of online sales of alcoholic beverages in developing economies is expected to be the major factor propelling the segment growth. The online distribution channel is expected to register the fastest CAGR during the forecast period.
Even among baby boomers, digital orders for grocery purchases have become increasingly popular. Furthermore, the integration of online channels with brick-and-mortar stores is beginning to gain prominence.
Asia Pacific dominated the global market in 2021 and is expected to maintain its dominance during the forecast period. The increasing number of working individuals coupled with the rising disposable income and convenient accessibility of supermarkets & grocery stores is the key driver of the regional market.