Global grocery market sales to increase by $440 billion as e-commerce accelerates

According to Fresh Fruit Portal , according to the latest forecast from global insight provider IGD, sales in the global grocery retail market will increase by US$440 billion between 2020 and 2022, with a compound annual growth rate of 3.1%.

The shift in consumer spending from out-of-home to in-home due to pandemic lockdown restrictions drove accelerated growth in most retail markets around the world in 2020. The grocery market saw exceptional growth during the year .

The global forecast also finds that the United States will remain the leading market until 2022, with Central and Eastern Europe expected to grow faster than Western Europe in the medium term, while growth in China will remain strong and will continue to accelerate its transition to online trends .

Regarding North America, Stewart Samuel, IGD Canada Program Director, said : “There is a high degree of uncertainty about the economic outlook for the United States, which depends on the level of fiscal support from the new government and the rollout of vaccines. We expect growth to be relatively flat over the next two years, but any growth we see is likely to be driven by e-commerce, discounting and value models . ”

“The pandemic has led to a gradual decline in supermarket and superstore market share as shoppers focus their shopping in larger stores, and we expect this trend to continue . Suppliers have had an unprecedented opportunity to attract new households during the pandemic , and a focus on retention and repeat purchases will help consolidate market share gains and growth from 2020. ”

On growth in China, Nick Miles, head of Asia Pacific at IGD, said : “The data suggests that with much of China now virus-free since April 2020 , growth in the grocery retail market will remain strong. ”

The trend of consumers turning to online channels is accelerating, and social platforms will continue to drive online traffic and sales. In addition, consumers are increasingly demanding ultra -convenient shopping experiences , so a full range of services such as fast home delivery, QR code scanning and self-service checkout will be widely adopted.

The growing popularity of neighborhood stores and omnichannel retailing has changed the dynamics of the grocery market. Suppliers will need to expand their customer base, reach out to potential consumers in second- and third-tier cities, and attract such consumers with relevant products as this is the direction retailers are heading .

Regarding Western Europe, Jon Wright, head of EMEA, said : “ With much of Western Europe expected to face economic challenges in 2021 , retailers will need to focus on price to remain competitive . ”

The COVID-19 pandemic has accelerated the shift to online in most markets, leading to further investments in this channel by retailers involved .

In the UK, following a significant shift in consumer spending from foodservice to grocery retail in 2020, sales growth will slow as the national vaccination programme allows the hospitality sector to reopen. Online will continue to maintain its high market share and large weekly stores will remain popular. The gradual reduction of fiscal support and rising unemployment will lead some households to save on groceries, while others may spend less as dining out begins to recover.

groceries

E-commerce

worldwide

Grocery e-commerce