Global Grocery Market – Industry Trends and Forecast to 2030

Global Grocery Market, By Product Type (Packaged Food, Unpackaged Food, Drinks, Tobacco, Household Products and Others), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Stores, and Others) – Industry Trends and Forecast to 2030.

Grocery Market Analysis and Size

The growth and expansion of the food and beverage industry, an increase in the number of hypermarkets and supermarkets, growing consumer awareness regarding high-quality nutritional products, and rising personal disposable income among major companies drive the grocery market.

Grocery encompasses food and household supplies that consumers purchase. Grocery stores are businesses that stock and package these items for consumers. These stores sell food and household supplies, and they can be found both online and offline. Some people prefer in-person shopping, while others opt for online grocery shopping. Grocery stores offer a wide range of food products, including fruits, dairy, cereals, beverages, snacks, seafood, meat, and other cooking essentials.

Data Bridge Market Research analyses the global grocery market which was USD 11,947.24 million in 2022, is expected to reach USD 18,335.27 million by 2030, and is growing at a CAGR of 5.50% in the forecasted period of 2023 to 2030. "Packaged Food" dominates the product type segment of the global grocery market due to the convenience and wide variety of packaged food products preferred by consumers worldwide. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Grocery refers to a wide range of food and household items that consumers purchase regularly for their everyday needs. These items can include packaged and unpackaged foods, beverages, tobacco products, household cleaning supplies, personal care products, and other essentials. Grocery stores, both physical and online, are the primary retail outlets where consumers obtain these products. These stores offer a diverse selection of food, ranging from fresh produce to canned goods, and non-food items such as cleaning agents. Grocery shopping is an integral part of daily life, fulfilling nutritional, hygienic, and household requirements.

Global Grocery Market Dynamics

Drivers

• Changing Consumer Preferences

Shifting consumer preferences toward healthier and more convenient food options are driving the grocery market. Consumers are increasingly seeking organic, sustainable, and locally-sourced products. This trend is pushing grocers to diversify their product offerings and source items that align with these preferences.

• Growing E-commerce industry

The rapid expansion of e-commerce in the grocery sector is a significant driver. Online platforms offer the convenience of doorstep delivery and a wide range of products. With the proliferation of mobile apps and online grocery shopping, traditional retailers and new entrants are investing heavily in the digital grocery landscape.

Opportunities

• New Technological Advancements

The integration of technology, such as AI-driven inventory management, smart shelves, and personalized shopping experiences, offers opportunities for efficiency and enhanced customer engagement. These innovations can help retailers streamline operations and cater to individual consumer needs.

• Global Expansion of Grocery Retail

The globalization of grocery retail presents opportunities for market growth. Expanding into emerging markets with growing middle-class populations and increasing disposable incomes can be lucrative. Additionally, international trade allows access to a broader range of products.

Restraints/Challenges

• Supply Chain Challenges

Supply chain disruptions, as evidenced during the COVID-19 pandemic, continue to pose a restraint. Issues such as transportation delays, fluctuating commodity prices, and inventory management difficulties can lead to product shortages and impact profit margins.

• Sustainability and Environmental Concerns

Meeting the growing demand for sustainable and environmentally-friendly products while minimizing the environmental footprint of grocery operations is a significant challenge. Balancing the need for packaging, food preservation, and waste reduction requires innovation and investment in sustainable practices, which may be costly and complex.

Recent Developments

• In September 2023, Nestlé announced that it is targeting a 50% sales increase in its nutritious products by 2030, emphasizing Health Star Rating items. They also aim to promote balanced diets and responsible marketing
• In October 2023, Unilever invested €19.4 million in its Poznan factory in Poland to meet the increasing demand for noodles, highlighting the growth opportunities in this convenient food category

Global Grocery Market Scope

The global grocery market is segmented on the product type and distribution channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Packaged Food
• Unpackaged Food
• Drinks
• Tobacco
• Household Products
• Others

Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others

Global Grocery Market regional analysis/insights

The global grocery market is analyzed and market size insights and trends are provided by country, product type and distribution channel as referenced above.

The countries covered in the global grocery market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia Pacific dominates and in the global grocery market due to region's large population, increasing urbanization, and evolving consumer preferences.

North America region is expected to witness significant growth in the global grocery market during the forecast period of 2023 to 2030 due to rising disposable incomes and changing consumer habits in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Global Grocery Market Share Analysis

The global grocery market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to global grocery market.

Some of the major players operating in the global grocery market are:

• Nestlé (Switzerland)
• Procter & Gamble (U.S.)
• Unilever (U.K.)
• The Coca-Cola Company (U.S.)
• PepsiCo (U.S.)
• Mondelez International (U.S.)
• Kellogg's (U.S.)
• General Mills (U.S.)
• Mars, Incorporated (U.S.)
• The Kraft Heinz Company (U.S.)
• Danone (France)