Global Food Retail Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Global Food Retail Market Growth

Growing demand for healthy food products, the rise of online shopping, and the burgeoning popularity of convenience food products are some of the prominent factors aiding the market growth. Consumers are increasingly looking for organic and functional food products which has led several retail stores and supermarkets to create a separate section for them or open new stores and departments just for their storage and sales. In the aftermath of the pandemic in 2020, there has been a significant rise in online shopping for goods including food and grocery items, pushing the food retail demand.

Due to the busy lifestyle of the working population and college students, the demand for convenience food products such as ready-to-eat meals, and pre-cut fruits and vegetables is on the rise. As per the SATS solution group, the ready-to-eat sector in India is expected to witness a growth of 45 per cent in the next five years from the year 2024.

Several market players are promoting sustainability by offering transparency on their product’s carbon footprint to their consumers. For instance, Albert Heijn, a Dutch-based grocery retailer, is now sharing the climate impact of 1100 of its food and beverage products with its customers via its platform. This data also allows it to detect the problem areas and reduce the impact of those products.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends And Recent Developments

Global Food Retail Market Trends

Another important trend developing in the food retail market at this time is personalized shopping experiences, driven by advanced data analytics and artificial intelligence. These technologies are being used by retailers to deliver tailored product recommendations, dynamic pricing, and targeted promotions based on individual consumer preferences and purchasing behavior. This trend increases customer satisfaction and generates higher loyalty by creating more relevant and convenient shopping experiences and thus boosts the food retail industry growth. This ultimately increases engagement and sales in an increasingly competitive market.

Industry Outlook

The High Level Of Food Spending On Food Expenditure Drives Up The Growth In The Food Retail Market Globally.

The shares of consumer expenditure spent on food as a percentage of the whole showed quite a marked variation across countries in 2022, indicating different economic situations, levels of income, and living costs. In Myanmar, the share reached over 50% of consumer expenditure. High shares of consumer spending on food are an indication of a low overall income level, in which a high part of the budget has to be allocated to consumption for subsistence. This becomes a significant trend in the food retail market globally. 

In African countries, such as Angola, Ethiopia, and Tanzania, the share of food expenditure makes up about 30% up to 40% of the population, which reflects about the same trends: relatively low disposable incomes of the population in these countries versus a bigger cost of food compared to other consumer goods. For another type of country, Venezuela, which is still experiencing a severe economic crisis, 20% of food expenditure can characterize very high inflation and economic instability; thus, such changes can result in consumer shopping patterns.

In Asia, countries with the same range of 30% to 40% included Kazakhstan, Azerbaijan, and Iran, hence placing food at a high importance in household budgets against countries that vary in their degree of economic development. Also within this range were Belarus and Bolivia from Europe and South America respectively indicating that countries in similar economic conditions continued to have food as a major component of consumer expenditure.

This share was much shorter in wealthier countries like Australia and Bahrain, close to or a bit less than 15%. Then, the sum of total consumer expenditures in those countries was by far stronger and in most cases was returning 20-50 thousand US dollars per person. Consequently, shorter shares of spending on food in those countries suggest higher disposable income with a smaller share of income spent on meeting the requirements for food, and a stronger level of spending on other goods and services, thereby propelling the food retail demand growth. 

For instance, in both Brazil and Argentina, expenditure on food was within the moderate level, 20% to 30% of all expenditures. This implies that it was a middle-income level, suggested by the fact that food was not the overwhelming portion of the budget, which it is in lower-income countries. Costa Rica was also in this range, suggesting a similar economy. The importance of the spending patterns of differences among countries shows that larger amounts have been spent on food in lower-income countries, while the wealthier nations are represented by a smaller percentage relating to food and more with so-called reserve dispositions of other spending items.

Global Food Retail Industry Segmentation

Food Retail Market Share

Supermarkets And Hypermarkets To Gain A Significant Share For Increased Availability Of Range Of Products

As per food retail market analysis, supermarkets and hypermarkets account for major market share owing to their increased accessibility and availability of a wide range of food products. They can offer a variety of goods, both food and non-food, thereby effectively meeting the different needs of the consumer, hence attracting more of them interested in variety and convenience in the purchasing experience. Moreover, these stores offer a broad assortment of products under a single roof and store discounts and coupons which makes them an attractive option for the consumers.

Adoption of Advanced Technologies and Unique Product Offerings are Driving the Growth of the Global Food Retail Market.

• The global food retail market offers a wide variety of products catering to different consumer preferences and dietary needs, thereby enhancing customer satisfaction and loyalty.
• Adoption of advanced technologies such as AI, IoT, and big data analytics in inventory management, personalized marketing, and improving the overall shopping experience.
• Strong and efficient supply chain networks ensure the steady availability of products to consumers and reduce the risk of stockouts.
• Major players in the market have strong brand recognition and customer loyalty that aids in sustaining a constant revenue generation stream, boosting the food retail industry revenue globally.

Logistics Costs and Food Safety Regulations Impact Profitability of the Global Food Retail Market

• Food retailing is a business that involves a number of logistics, storage, and manpower-related costs that significantly impact profit margins.
• The food products are such that they perish easily, meaning a greater percentage of them turn to become simple wastes in the absence of installed inventory management systems.
• The industry is heavily regulated, involving food safety and labeling and strong environmental standards, costing both in expense and complexity to implement.
• Food retailers suffer from reduced sales and profitability during periods of economic downturn when spending power is diminished, thereby impeding the demand of the food retail industry.
• Natural disasters, geopolitical tensions, pandemics, etc., can disrupt the supply chain, resulting in a shortage of products and an increase in their cost.
• Fast and changing consumer preferences and eating habits can make existing product lines irrelevant and call for continuous adaptation and innovation.

Fast Growth in Online Grocery Shopping and Consumers' Rapidly Growing Preference for Healthy Sustainably Sourced Products are the growth drivers of the Food Retail Market.

• Online grocery shopping has been on an increasing spree lately, which creates huge opportunities in terms of growth and expansion in the food retail market. 
• Rapid urbanization in emerging markets and increasing disposable incomes open new opportunities for higher sales and market expansion. 
• Growing consumer awareness about health and well-being will continue to drive demand for organic, non-GMO, and specialty diet products, creating opportunities for diversification and value pricing, pushing the food retail market revenue globally. 
• Coupled with this, the consumer moves towards sustainable and ethically sourced products give a unique way for retailers to differentiate their activity and build brand loyalty.

Food Retail Market Regional Analysis

The food retail industry in Asia-Pacific region is on course to assume a more prominent place in the food retail market, driven by its rapidly growing population, increasing urbanization, and higher disposable incomes. A growing middle class creates demand for diversified ranges of foodstuffs and modern retail formats. At the same time, technological innovation and growth in e-commerce, as seen in countries like China and India, shift the dynamics of the retail environment toward accessibility. This will place Asia-Pacific at the forefront of the evolving food retail market globally.

Competitive Landscape

Other key players profiled in the food retail market report are 7-ELEVEN, Inc., Amazon.com Inc., ALDI, Inc., and Schwarz Unternehmenskommunikation GmbH & Co. KG, among others.