Grocery Market Report and Forecast 2024-2032

According to this report, the global grocery market size reached a value of USD 3.87 trillion in 2023. Aided by the factors such as population growth and increasing food demands, the market is projected to further grow at a CAGR of 4.70% between 2024 and 2032 to reach a value of USD 5.87 trillion by 2032.

The market encompasses the sale of a wide range of products, including fresh produce, packaged foods, beverages, and household items, and is a crucial segment of the global retail industry.

The growing global population is a key factor propelling the grocery market growth. As the population continues to rise, particularly in emerging economies such as India, China, and Brazil, the demand for food and household products is on the rise. Additionally, urbanisation has led to a shift in lifestyle patterns, with more people relying on convenience and accessibility for grocery purchases. This trend has spurred growth in modern retail formats such as supermarkets, hypermarkets, and e-commerce platforms.

The increasing adoption of e-commerce and digital platforms is another significant driver of the global grocery market value. With the proliferation of smartphones and internet connectivity, consumers have shifted towards online grocery shopping, which offers the convenience of home delivery, wider product selection, and competitive pricing. Retailers are increasingly investing in robust online platforms and supply chain networks to meet growing consumer demand for online grocery shopping. Furthermore, the COVID-19 pandemic accelerated this shift, as lockdowns and health concerns led to a surge in demand for contactless grocery deliveries.

Additionally, consumers are becoming more health-conscious, driving demand for organic, clean-label, and sustainably sourced grocery products. The rise in health awareness has led to an increasing preference for fresh produce, minimally processed foods, and plant-based alternatives. Retailers are responding by expanding their product lines to include organic fruits and vegetables, gluten-free items, and other healthier alternatives, which has emerged as one of the key grocery market trends.

However, the market also faces several challenges. Rising inflation and fluctuations in commodity prices have led to increased operational costs for retailers, which are often passed on to consumers in the form of higher prices. Additionally, supply chain disruptions caused by geopolitical tensions, extreme weather events, and other external factors pose risks to market stability.

Technological advancements in supply chain management and automation are also shaping the grocery market dynamics. Innovations such as artificial intelligence (AI), machine learning, and blockchain are being integrated into the grocery supply chain to improve efficiency, reduce waste, and enhance traceability. These technologies are not only improving the consumer experience by ensuring fresher products and faster deliveries, but they are also helping retailers optimize their inventory management and reduce operational costs.

The grocery demand is also increasing due to increased disposable income and consumer spending. As economies continue to grow, especially in developing regions, more consumers are willing to spend on premium and specialty grocery items. The demand for luxury and imported products is on the rise, particularly in urban areas where consumers have higher purchasing power.

The growing focus on sustainability is influencing both consumers and retailers, resulting in grocery market development. Consumers are increasingly concerned about the environmental impact of their purchases, driving demand for eco-friendly packaging and locally sourced products. Retailers are responding by adopting greener practices, such as reducing plastic usage, supporting local farmers, and offering more sustainable product options. This trend is expected to continue shaping the future of the global grocery industry.

In conclusion, the global market for grocery is poised for steady growth over the forecast period, driven by rising consumer demand, urbanization, and the increasing shift towards digital shopping. Technological advancements and sustainability trends will further shape the grocery market, providing new opportunities for retailers to innovate and meet evolving consumer needs.

Market Segmentation

The market can be divided based on product type, distribution channel, and region.

Market Breakup by Product Type

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

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global grocery market. Some of the major players explored in the report are as follows:

• Nestlé S.A.
• The Procter & Gamble Company
• Unilever plc
• The Coca-Cola Company
• PepsiCo, Inc.
• MONDELEZ INTERNATIONAL INC.
• Danone SA
• General Mills Inc.
• Kraft Heinz Co.
• Kellanova
• Others