Food Retail Market

Food Retail Market Outlook (2024 to 2034)

The valuation of the global food retail market is estimated at US$ 12,588.8 billion in 2024 and has been evaluated to rise at a CAGR of 5.5% to reach US$ 21,503.5 billion by the end of 2034. The market is projected to expand at a steady rate over the coming years as food retail companies opt for innovative strategies to expand their customer base and increase their investment budgets.

• Costco opened its new branch in Daytona Beach on February 24, 2024, attracting a large crowd of customers and unlocking a new region for sales and growth.
• On May 17, Walmart Inc. reported a 22% surge in online sales in the United States for its first quarter of fiscal 2025, ending on April 30, 2024. During the same period, international e-commerce grew by 19%, with global e-commerce sales rising by 21%.

Food retailers are directing attention toward understanding consumers' needs, improving their supply chain, and modernizing their marketing strategies.

Key Market Growth Drivers

• The food industry is enduring and relatively free from negative impacts, providing a favorable environment for food retail companies to enter the market and increase their revenue.
• Food retail options simplify access to food ingredients at lower costs by eliminating middlemen, which enhances their appeal and popularity among customers.
• Preference among consumers for healthier, organic, and ethically sourced foods is driving product innovation and marketing strategies in the food retail market.
• Increasing urbanization and busy lifestyles are boosting demand for convenience food, which is available in diverse forms across retail outlets.

Report Attribute	Detail
Food Retail Market Size (2024E)	US$ 12,588.8 Billion
Forecasted Market Value (2034F)	US$ 21,503.5 Billion
Global Market Growth Rate (2024 to 2034)	5.5% CAGR
Canada Market Growth Rate (2024 to 2034)	6% CAGR
China Market Value (2034F)	US$ 2,359.5 Billion
North America Market Share (2024E)	23.9%
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	The Kroger Company; Amazon.com Inc.; 7-Eleven; The Schwarz Group; Tesco Plc; Target Corporation; Costco Wholesale Corporation; Amartex Family Mart; Walmart Inc.; Anay Groceries.

What Should Food Retailers Keep in Mind?

“Growing Customer Preference for Healthier, Organic, and Sustainable Food Options”

Food retail market growth is driven by rising consumer spending, a preference for supermarket shopping, and increasing demand for private label products. With the rapid expansion of supermarket and hypermarket segments, the prominence of independent and specialty retailers is projected to shrink over the forecast period.

• On May 29, 2024, The Kroger Co. launched Abound pet food products, which were made immediately available in redesigned packaging as part of the company's expansion of its private label pet food line.
• Walmart introduced a new private-label food brand on April 30, 2024, while competing merchants were expanding their collections and striving to enhance and broaden their offerings.

The number of shoppers at brick-and-mortar stores decreases each year.

• According to Forbes, Amazon holds the largest market share among e-Commerce companies, capturing 37.6% of all online transactions. With the convenience of international shipping and easy online ordering, online consumers are less concerned about purchasing products from abroad. Globally, 52% of online shoppers now make purchases from both local and international websites.

Offering additional shipping options to international customers could be a viable tactic to increase sales.

“Inefficient Supply Chain and Geopolitical Conflicts Disrupting Market Stability”

The inefficiency of the supply chain and the threat posed by unorganized companies are significant issues for the industry. However, these challenges are being offset by the expanding middle class and the increase in online retail sales, which are creating growth opportunities for the sector.

Primary market constraints include the risk from unorganized food sellers and the inefficiency of the supply chain. In less developed countries, the long-term impact of inefficient supply chains is expected to be minimal, though substantial in the short and medium term. These factors hinder the expansion of the food retail market size.

Government infrastructure investments and the entry of international food processing corporations into developing nations are expected to mitigate the impact of supply chain-related constraints.

• In 2024, a new set of challenges will emerge for the global food supply system. Ongoing attacks by Houthi rebels on cargo ships in the Red Sea have forced carriers to avoid the route, significantly straining supply systems already under pressure from the conflict in Ukraine.

Country-wise Evaluation

The market in Japan is forecast to expand at a CAGR of 6% from 2024 to 2034. The country is projected to occupy a food retail market share of 29.4% in East Asia by the end of 2034.

How is the Market Shaping Up in Response to Evolving Consumer Preferences in the United States?

“Market Benefitting from Adaptation of Traditional Grocery Chains to Digital Transformation”

Attribute	United States
Market Value (2024E)	US$ 1,338.9 Billion
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 2,382.8 Billion

Factors such as changing consumer preferences towards healthier options, increased demand for online grocery shopping, and the rise of convenience-oriented formats like meal kits are important food retail market trends in the United States. In addition, there is a growing emphasis on sustainability, with consumers favoring brands that demonstrate ethical sourcing and environmental responsibility.

Traditional grocery chains are adapting to digital transformation while facing competition from e-commerce giants and niche players in the face of fierce competition. Regulatory changes, economic conditions, and technological innovations further influence the market's trajectory, making it dynamic and responsive to evolving consumer demands.

What’s Benefitting Food Retailers in South Korea?

“Government Initiatives Promoting Trade Relations with Other Countries”

Attribute	South Korea
Market Value (2024E)	US$ 626 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 1,147.4 Billion

The government in South Korea is actively promoting diplomacy and trade relations with neighboring countries and across the East Asia region. Strong diplomatic ties and trade agreements contribute to a positive international perception of South Korean products and brands.

• According to the Foreign Agricultural Services, exports of agricultural products from the United States to South Korea soared to a record US$ 9.5 billion in 2022, marking a 2% increase from 2021. This is leading to the success of the free trade agreement (KORUS) between South Korea and the United States and robust demand for high-quality American food products, solidifying South Korea's position as the sixth-largest export market for the United States.

Category-wise Evaluation

Based on distribution channel, the supermarket/hypermarket segment is evaluated to expand at a CAGR of 5.6% from 2024 to 2034.

Which Benefits of Convenience Stores Entice Consumers?

“Longer Operating Hours and Diverse Product Selection”

Attribute	Convenience Stores
Segment Value (2024E)	US$ 2,882.8 Billion
Growth Rate (2024 to 2034)	6.4% CAGR
Projected Value (2034F)	US$ 5,354.4 Billion

Extended operating hours in convenience stores are winning the hearts of end users, and more people are enjoying benefits such as the availability of product mixes, low prices, and nearby locations.

• Newly released statistics from the National Association of Convenience Stores (NACS) indicate that 2023 witnessed record sales in convenience stores. In 2023, the convenience business generated US$ 859.8 billion in revenues, with US$ 327.6 billion coming from in-store sales. The average basket amount spent by patrons on each visit rose to US$ 7.8 billion, a 3.7% rise.

Business Landscape

Key players in the food retail industry are integrating new technologies into their operations, including e-commerce platforms, social media strategies, and advanced software. These innovations aim to improve consumer experiences. In addition, these players are diversifying their offerings by introducing new product categories such as online grocery delivery, health-focused foods, food logistics solutions, and food preservation methods, thereby adapting to evolving consumer preferences.

• In September 2023, C&S Wholesale Grocers, LLC, Kroger Co., and Albertsons Companies Inc. formally finalized a contract for the sale of specific stores, banners, distribution facilities, offices, and private label brands. This merger, initially announced on October 14, 2022, included this transaction.
• C&S Wholesale Grocers, LLC (C&S), a prominent player in the US wholesale grocery market and supply chain solutions, publicly announced its acquisition of 413 stores, 8 distribution facilities, and 2 offices in September 2023. These assets became available due to the anticipated merger of The Kroger Co. with Albertsons Companies, Inc.

Fact.MR provides detailed information about the price points of key food retail companies positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Key Segments of Food Retail Market Research

• By Product Type :

  • Food
  • Groceries

• By Category :

  • Packed
  • Unpacked

• By Distribution Channel :

  • Supermarkets/Hypermarkets
  • Independent & Specialist Retail Outlets
  • Convenience Stores
  • Others

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa