Press release
With Innovation Unleashed, The Global Food Retail Market Is Expected To Witness A CAGR Of 6.1% From 2014-2020
According to a U.S.-based research firm, about 1.5 billion households globally would be in the middle-class category by 2020, up from 1.2 billion households in 2012. China and India are among the countries witnessing a fast growth in their middle-class population. In 2012, there were 227 million and 149 million middle-class households in China and India, respectively.
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The restraining impact of lack of supply chain effectiveness in less developed countries is expected to be medium in the short and medium terms, and low in the long term. Government investment in infrastructure and the entry of global food processing companies in developing countries are expected to minimize the impact of supply chain-related restraints.
The threat from unorganized players is expected to be high in the short term, medium in the medium term and low in the long term. The number of organized players is increasing in developing countries due to increasing urbanization and per capita income. In India, discussions regarding foreign direct investment (FDI) in retail are currently under way, and if it is approved by the Indian government it may add benefits to the food retail industry.
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Asia-Pacific is the largest market for food retail. Increasing per capita income, growing level of education, smaller families, and increasing urbanization and westernization are the key factors driving the growth of the food retail industry in this region. Europe is the second-largest market for food retail due to the presence of a large number of branded stores and discounters such as Aldi, Carrefour, Auchan, and Tesco which offer fresh and branded products.
Food Retail is categorized under distribution channels into four different segments: supermarkets or hypermarkets, independent and specialist retailers, convenience stores, and others. The supermarket or hypermarket segment holds the largest share of the overall market in 2013 at USD 2,925.8 billion and is expected to reach USD 4,448.5 billion by 2020 at a CAGR of 6.2 % from 2014 to 2020.
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Under the regional segment, the Asia Pacific food retail market (the largest market in 2013) increased by 7.2 % CAGR during 2010-2013 to reach USD 1,909.2 million in 2013.
Some of the major companies of food retail operating at the global level are such as Wal-Mart Stores Inc., Carrefour SA, Tesco plc, AEON CO. LTD., Metro AG, Seven & I Holdings Co., Ltd., The Kroger Company, Groupe Auchan, and REWE Group.
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