The global grocery retail market is set to grow by $440 billion (€370 billion) between 2020 and 2022, a compound annual growth rate of 3.1%, a new study by IGD has found.
According to IGD, the grocery market in the top 20 markets grew by $280 billion (€235 billion) last year, which equates to growth of 8.8%, due to the shift from out-of-home to at-home dining.
India's grocery market is poised to post the highest growth between 2020 and 2022, IGD said, with a CAGR of 7.2%.
Growth in China will remain 'robust', it added, as the accelerated shift towards online continues, while in Europe Central and Eastern Europe is expected to grow faster than Western Europe.
Price Focus
“Economic challenges are expected across most of Western Europe in 2021, so retailers will need to focus on price to remain competitive," commented Jon Wright, head of EMEA at IGD.
"Pre-COVID trends have been accelerated by the pandemic, which has hastened the switch to online across most markets, resulting in further investment in this channel."
Elsewhere, the UK’s changed retail landscape will retain some of its new features such as online shopping and 'big weekly shops'.
Largest Market
The US is expected to remain the world's largest grocery market, at least until 2022, IGD noted.
“There’s a high degree of uncertainty relating to the economic outlook in the US, which is dependent on the level of financial support from the new administration and the vaccine roll-out," added Stewart Samuel, programme director at IGD Canada.
"We expect relatively flat growth over the next two years but any growth we do see is likely to be driven by ecommerce and discount and value formats."
Global Market Sizes – The Top 20 Grocery Markets In 2022 [Source: IGD]
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