Food & Grocery Retail Market valued at US$11.9 Tn in 2024, driven by rising demand and tech innovations.

✅Overview of the Food & Grocery Retail Market

The global food & grocery retail market was estimated at a staggering US$ 11.9 trillion in 2024, reflecting its position as a cornerstone of everyday consumer spending worldwide. Driven by population growth, urbanization, and rising disposable incomes, the sector is projected to reach US$ 15.0 trillion by 2031. This steady expansion corresponds to a compound annual growth rate (CAGR) of approximately 3.4% from 2024 to 2031, underscoring the market's resilience and consistent demand for essential food and grocery products.

Key growth drivers behind this market surge include increasing consumer preference for convenience and fresh food options, the proliferation of online grocery platforms, and expanding retail infrastructure in emerging economies. Among segments, fresh food and packaged groceries remain dominant, with the latter benefiting significantly from innovations in product packaging and branding. Geographically, the Asia-Pacific region leads the market, fueled by rapid urbanization, a burgeoning middle class, and growing e-commerce penetration, making it the epicenter for future retail growth.

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✅Key Highlights from the Report

➤ The global food & grocery retail market is projected to grow at a CAGR of 3.4% from 2024 to 2031.
➤ The market valuation is expected to increase from US$ 11.9 trillion in 2024 to US$ 15.0 trillion by 2031.
➤ Asia-Pacific dominates the market due to rising urbanization and digital grocery adoption.
➤ Fresh food and packaged groceries are the leading product segments driving revenue.
➤ E-commerce and omnichannel retail strategies significantly impact market expansion.
➤ Increasing consumer focus on health and sustainability influences product offerings.

✅Frequently Asked Question

What factors are driving the growth of the food & grocery retail market globally?

The global food & grocery retail market is primarily driven by evolving consumer lifestyles and increasing demand for convenience and quality. Urbanization and rising disposable incomes, especially in emerging economies, have broadened access to modern retail channels. Additionally, the rapid expansion of e-commerce platforms has revolutionized how consumers purchase groceries, offering ease, variety, and home delivery options. Another critical factor is the growing preference for fresh and organic food products due to heightened health awareness. Retailers are adapting by expanding product assortments and integrating technology to enhance shopping experiences. Together, these factors create a favorable environment for sustained market growth through 2031.

✅Market Segmentation

The food & grocery retail market is segmented primarily by product type, including fresh food, packaged groceries, beverages, and frozen products. Fresh food remains a critical segment, supported by consumer demand for healthier and minimally processed options. Packaged groceries also contribute substantially, driven by convenience and long shelf life, making them popular in both urban and rural settings. Additionally, the beverage segment, especially functional and ready-to-drink drinks, is gaining traction as consumers seek innovative, health-focused products.

End-user segmentation divides the market into household consumers, institutional buyers, and online consumers. Household buyers account for the majority of sales, purchasing daily essentials from supermarkets and neighborhood stores. However, the online consumer base is rapidly expanding, catalyzed by increasing internet penetration and smartphone usage. Institutional buyers, such as hotels and restaurants, form a smaller but stable segment focused on bulk purchases. These diverse segments ensure balanced growth across various retail formats and channels.

✅Regional Insights

Asia-Pacific leads the global food & grocery retail market, driven by countries like China, India, and Southeast Asia. Rapid urban migration, expanding middle-class populations, and improvements in retail infrastructure fuel this region's growth. The rise of online grocery platforms is particularly notable, with consumers embracing digital shopping for convenience.

North America and Europe remain mature markets with steady growth, propelled by strong organized retail and increasing demand for organic and specialty foods. These regions are also early adopters of technology-driven retail innovations such as cashier-less stores and AI-driven supply chain management.

✅Market Drivers

The foremost driver for the food & grocery retail market is the shift in consumer preferences toward convenience and health-conscious products. Rising urbanization and the busy lifestyles of consumers fuel demand for ready-to-eat meals, fresh produce, and organic options. Technological advancements, especially in e-commerce and supply chain logistics, have made grocery shopping more accessible and efficient, attracting a broader customer base.

✅Market Restraints

Despite robust growth, the market faces challenges such as supply chain disruptions caused by geopolitical tensions and climate-related impacts on agriculture. Rising inflation and fluctuating commodity prices also pose risks by affecting consumer purchasing power and retailer margins. Additionally, increasing regulatory scrutiny over food safety and labeling requirements can add to operational complexities for retailers.

✅Market Opportunities

Emerging economies present significant opportunities for expansion due to increasing disposable incomes and underpenetrated modern retail formats. The growing trend toward sustainable and ethically sourced products opens avenues for premium and niche market segments. Furthermore, integration of AI, data analytics, and automation within retail operations promises improved inventory management, personalized shopping experiences, and cost efficiencies.

✅Reasons to Buy the Report

✔ Comprehensive analysis of market size, growth, and forecasts through 2031.
✔ Detailed segmentation insights by product type, end-user, and region.
✔ Identification of key drivers, restraints, and growth opportunities.
✔ Competitive landscape with profiles of leading market players.
✔ Strategic recommendations for market entry and expansion.

✅Company Insights

✦ Walmart Inc.
✦ Amazon.com, Inc.
✦ Tesco PLC
✦ Carrefour S.A.
✦ Aldi Einkauf GmbH & Co. oHG
✦ Kroger Co.
✦ Lidl Stiftung & Co. KG
✦ Costco Wholesale Corporation

■ Walmart launched an advanced online grocery delivery system to enhance customer convenience in 2024.

■ Amazon expanded its grocery footprint by acquiring a major supermarket chain in Asia-Pacific, strengthening its regional presence.

✅Conclusion

The food & grocery retail market is on a sustained growth trajectory, driven by evolving consumer behaviors, technological innovations, and expanding retail infrastructure, particularly in emerging markets. Despite challenges like supply chain risks and inflationary pressures, opportunities abound in e-commerce growth and the rising demand for fresh and sustainable products. For businesses and investors, understanding these dynamics and adapting strategies accordingly will be crucial to capitalize on this expanding US$ 15.0 trillion market by 2031.

✅About Persistence Market Research:

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This release was published on openPR.