Food Retail Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

According to this report, the global food retail market size reached a value of USD 8.18 trillion in 2023. Aided by the increasing consumer demand for healthier food options and growing online retail channels, the market is projected to further grow at a CAGR of 4.10% between 2024 and 2032 to reach a value of USD 11.78 trillion by 2032.

Food retail refers to the sale of food and beverages through various outlets, including supermarkets, hypermarkets, convenience stores, and online platforms. The sector plays a critical role in the global economy, ensuring the availability of essential food items to consumers worldwide. With a broad range of products available, from fresh produce to processed and packaged foods, the food retail industry is central to everyday consumer needs.

The growing global population, coupled with rising disposable incomes, is a key driver of the food retail market growth. As urbanisation increases, consumers are seeking more convenient shopping options, which has led to a shift in the way food is purchased, with online food retail gaining traction. Additionally, there has been a notable rise in the demand for healthier and organic food products, driven by increasing health awareness and changing dietary preferences, particularly in developed regions such as North America and Europe.

One of the significant food retail market trends is the shift towards e-commerce and digital shopping platforms. The pandemic accelerated the growth of online food retail, with consumers increasingly turning to e-commerce platforms for grocery shopping. This trend is expected to continue, with major retailers investing in digital infrastructure, including apps, delivery services, and omnichannel strategies that seamlessly blend in-store and online shopping experiences.

Another key trend leading to the growth of the food retail market value is the growing demand for organic and plant-based food products. As consumers become more health-conscious, they are seeking natural, organic, and minimally processed foods. This trend is particularly strong among younger generations, who prioritise sustainability and ethical sourcing in their food choices. Consequently, retailers are expanding their organic food offerings and forming partnerships with suppliers who focus on eco-friendly production practices.

North America is a significant player in the global market, driven by high consumer spending and a well-developed retail infrastructure. The region is characterised by large supermarket chains such as Walmart, Kroger, and Costco, which dominate the market. The growth of online grocery shopping is also strong in North America, as consumers increasingly adopt technology-driven purchasing behaviours.

In Europe, the food retail market demand is characterised by a growing demand for organic and sustainable food products. The European market is heavily influenced by regulatory standards related to food safety, environmental sustainability, and consumer health. Key players in the region, including Tesco and Carrefour, are expanding their organic and health food product lines to meet the changing preferences of consumers.

The Asia-Pacific is expected to constitute a major portion of the food retail market share, driven by rising disposable incomes, urbanisation, and an expanding middle class. Countries like China and India are seeing significant growth in both traditional and modern retail channels, with a surge in online food retail platforms as well. The region’s diverse food culture and large population make it a key market for both global and local food retailers.

The global food retail industry faces several challenges, including rising operational costs and increasing competition. With the growing presence of e-commerce giants like Amazon entering the food retail space, traditional brick-and-mortar retailers are under pressure to innovate and adapt to the changing consumer landscape. Moreover, supply chain disruptions and fluctuations in food prices continue to pose challenges for food retailers, especially in developing markets.

However, these challenges also present opportunities for food retail market development. The adoption of technology in the form of automation, AI, and data analytics is helping food retailers streamline their operations and enhance customer experiences. Furthermore, the growing emphasis on sustainability in the food retail sector is opening up new avenues for retailers to differentiate themselves by offering eco-friendly products and services.

The global food retail market expansion is being driven by evolving consumer preferences, technological advancements, and the rise of e-commerce. As retailers adapt to the changing landscape, the focus on convenience, health, and sustainability will remain key factors shaping the future of the industry.

Market Segmentation

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

Market Breakup by Product Type

• Cereals
• Fruits and Vegetables
• Meat and Seafood
• Dairy Products
• Breads
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• 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 food retail market. Some of the major players explored in the report are as follows:

• Walmart Inc.
• 7-ELEVEN, Inc.
• Amazon.com Inc.
• Kroger Company
• Costco Wholesale Corporation
• ALDI, Inc.
• Target Corporation
• Carrefour Group
• Schwarz Unternehmenskommunikation GmbH & Co. KG
• Tesco Plc
• Others