The global food retail market is set to grow at a CAGR of 6.1% between now and the end of the decade, to be worth $8.54 trillion (€7.87 trillion) by 2030, new data from Persistence Market Research has found.
The value of the food retail market stood at $5.64 trillion (€5.2 trillion) in 2019, it noted.
The rise of private label, an increase in consumer expenditure on food, growing online and e-commerce penetration and increased urbanisation are all factors that are likely to bolster the food retail market over the coming years.
Demand For Convenience
'Urbanisation trends worldwide have fuelled the demand for convenient food retail options,' Persistence Market Research said.
'Busy lifestyles and the prevalence of dual-income households have increased the demand for ready-to-eat meals, pre-packaged foods, and on-the-go snacks, driving growth in convenience stores, quick-service restaurants, and grab-and-go formats.'
Market Challenges
At the same time, the food retail sector is likely to see a number of market restraints and challenges, including increased competition, rising operating costs – particularly with regard to real estate, labour, utilities and logistics – and supply chain disruption.
According to Persistence Market Research, trends to note in food retail at present include the rise of online grocery shopping, with the COVID-19 pandemic helping to accelerate this trend; a growing focus on health and wellness, which has prompted retailers to invest in their ranges; and the rise of sustainable and ethical consumption, which has led to initiatives such as food waste, responsible sourcing and eco-friendly packaging to come to the forefront.
Additionally, retailers are increasingly investing in technology to improve the shopping experience. This involves the integration of AI-powered recommendation engines, augmented reality, and cashier-less checkout systems to streamline the purchasing process, both online and in-store.
A separate report by Forrester, published in December 2023, suggested that total retail sales in France, Germany, Italy, Spain, and the UK are set to reach €2.7 trillion by 2028, up from €2.3 trillion in 2023.
