Food & Grocery Retail Market Size Report, 2022-2030

Other factors, including the continued consolidation of the grocery market through M&A and persistent inflation, will further push grocers to offer competitive low-price options. There is an emerging trend wherein individuals are resorting to cooking international cuisines at home, to recreate the experience of traveling and vacationing. Food cupboard staples like curry pastes and spice mixes offer amateur home cooks a shortcut to flavor-filled meals. Hence, food cupboard products have become an important and lucrative sector for specialty shops to pursue, as the home cooking trend grows and along with it the demand for ingredients that will add something unique to a normal dish. For instance, in China, Alibaba’s 232 Freshippo (Hema) stores were built with delivery as a top emphasis.

• Other factors, including the continued consolidation of the grocery market through M&A and persistent inflation, will further push grocers to offer competitive low-price options.
• When the first shutdown began in March 2020 up to the week ending June 2020, compared to the same period in 2019.
• The valuation of the Europe food and grocery retail market reached USD 2,879.1 billion in 2021 and is likely to grow at CAGR of 2.6% over the forecast period owing to the rising online grocery retail in the region.
• The proliferation of supermarkets in developing countries in this region is the main factor leading to the dominance of this region.
• This is an annually updated list with the most relevant financial ratios for retail businesses.
• This emergence of socially conscious consumers is forcing Fortune 500 companies to act.

Grocers gained significant “share of stomach” during the pandemic as consumers across North America shifted to living, working, and learning at home. In an industry that has traditionally seen growth of 1 to 2 percent a year, North American grocery grew by approximately 12 percent in 2020, offsetting significant reductions in food away from home.1Kantar Retail IQ database. Consumers are driving the development and acceptance of new grocery delivery models to match their retail and service consumption patterns.

Sales

This infrastructure provides consumers with easy access to a diverse range of food and grocery options. India food & grocery retail market was valued at USD 618.2 billion in 2021 and is projected to grow at CAGR of 4.0% over the forecast period. The growth of both store-based and e-commerce retailing remains robust as urban households embrace modern lifestyles, leading to a preference for convenient modern retail outlets. According to data from IBEF, the online penetration of the retail sector is projected to increase to 10.7% by 2024, showing significant growth compared to the 4.7% recorded in 2019. Notably, supermarkets and hypermarkets like FoodHall and Star Bazaar are catering to this trend by offering their customers the option to shop online through dedicated mobile apps and providing complimentary home delivery services.

• Based on the tax returns of roughly 87,000 sole proprietors operating in the grocery store industry, the following were the 10 largest business expenses as a percentage of revenue.
• The past year presented one of the most challenging for society at large and produced what will likely be enduring consumer behaviors in grocery.
• Prominent supermarkets reported sales growth of anywhere from 12 to 16 percent in 2020, beating out several club and discount players alike.
• These assumptions will allow you to come up with a revenue forecast for your grocery store.
• By the end of the decade, factors that are now adding to complexity—including energy, recycling, and infrastructure—will become critical.

The global food & grocery retail market size was valued at USD 11,324.4 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 3.0% from 2022 to 2030. The growth can be primarily attributed to COVID-19 lockdown-induced higher spending on groceries, increased online-grocery sales volume, and consumer polarization. The pandemic resulted in the emergence of consumer polarization where some consumers scaled up to purchase expensive products. Furthermore, the pandemic-induced increased cooking at home has been a major growth driver for the market growth. We now see grocery retailers moving beyond the core by entering new categories, developing new sourcing strategies, expanding into consumer services, and selling B2B services that harness their strengths.

List of Leading Public and Private Companies

The ROI’s exclusive Retail Benchmark Trend Charts show the median value reported by Risk Management Association’s Annual Statement Studies for each of these key ratios each year. The bankers will look at these industry benchmarks as they assess your store’s performance. Given that a majority of the cost is spent on inventory to sell, this majority is not surprising. There is an importance of finding the right mix of inventory types that have higher profit margins with standard, in demand items. More insights from North American grocery CEOs are featured in the upcoming State of Grocery Retail North America report.

This Industry Compared to All Industries

Customer behaviors shifted dramatically and rapidly during the pandemic, forcing grocers to adapt in kind. To prepare for what lies ahead, North American grocers must understand the new industry baseline, the nuances of key consumer shifts observed over the past year, and the behaviors and preferences that will endure once the pandemic abates. Our research suggests the next normal will be shaped by five factors in 2021 and beyond. The global food and grocery retail market size was estimated at USD 11,324.4 billion in 2021 and is expected to reach USD 11,618.8 billion in 2022.

Industry Results, Publicly-Held Companies (U.S.), Average for all Companies

Last year, our analysis highlighted how grocery retailers were building ecosystems by partnering with tech companies, joining forces with delivery companies, and creating new value propositions. Grocery executives continue to explore ways to create new revenue streams and expand ecosystems, all in an effort to meet are there taxes on bitcoins consumers where they are. In the stores, often known as Hema, pickers who frequently outnumber shoppers, walk between reduced aisles to gather food and send them to an in-store packing station on conveyor belts. Personalized customer experience is another significant factor driving the growth of the global market.

The market is mainly driven due to significant growth in the food retail in the U.S. and Canada. According to the Census Bureau, food and beverage store sales for the entire year of 2022 witnessed a year-over-year increase of 7.6%, amounting to $947.57 billion (unadjusted). Within this, grocery stores experienced a growth of 8.3% to reach $848.52 billion over the course of 12 months. Asia Pacific routinely outperforms the global average in terms of online retailing adoption.

Meanwhile, McKinsey analysis shows that warehouse clubs have also gained market share at the expense of traditional grocers and supermarkets. For instance, microfulfillment center technology players such as Swisslog and Takeoff Technologies are collaborating with grocers Ahold Delhaize and H-E-B, respectively. Google and Microsoft are also forging partnerships with grocers to introduce AI in replenishment and commerce (for example, implementing online tools to enable consumers to build grocery shopping lists). It should jump out to you immediately that average annual expenses for a grocery store will be made up of the cost of goods and salaries, but can vary greatly depending on the type of products, so again let’s not focus too much on the specific dollar amounts here. What we can gain from this tax return data is an understanding of expenses and profits as a percentage of revenue rather than a specific dollar amount. The Asia Pacific dominated the food & grocery retail market with a share of 36.3% in 2021.

Their investments in fresh foods were a welcome tailwind as consumers increasingly sought to eat healthier foods. Furthermore, their local store density and historical community roots provided consumers with a sense of trust and confidence in shopping. And several supermarket chains rose to the e-commerce challenge by quickly bolting on click-and-collect or delivery services through third-party providers. Without having to compete primarily on price, the core proposition of supermarkets was once again attractive.