What are the Current Trends in Global Food and Grocery Retail?
The retail landscape remains complex and highly dynamic, with significant geographical differences. Omni-channel retailing is becoming the norm, as digital technology transforms both retailer operations and consumer expectations. Industry trends have been shaped by rising demand for organic and healthy food options, private labels, and no-checkout retail technology. Online grocery shopping is steadily increasing, being driven by urbanization and an increase in smartphone usage, and set to be further accelerated by the effects of the pandemic.
What are the Distinct Market Segments?
Within the vast food and grocery retail industry, several key segments exist that retailers need to carefully navigate. Fresh food, packaged groceries, beverages and non-food related items such as household cleaning and personal care products are the major divisions. Each of these segments has its own growth dynamics, with factors such as product innovation, customer preferences, and regulatory oversight playing pivotal roles in shaping their future direction. Moreover, the potential for online sales varies by segment, with fresh food presenting particular challenges due to supply chain and delivery requirements.
Who Makes up the Shopper Profiles Globally?
Diverse shopper profiles across the globe necessitate localized, personalized marketing strategies. Although the middle class in emerging markets continues to grow, accounting for a significant proportion of global consumption, the developed world remains important with its demand for premium and sophisticated product offerings. Meanwhile, younger consumers are driving trends towards ethically sourced, sustainable and plant-based options, showing sensitivity to social and environmental issues. Retailers must adapt to this increasingly segmented and discriminate marketplace, leveraging analytics and consumer insight data to tailor their offerings and retain customer loyalty.
Key Indicators
- Overall Market Size
- Segment Specific Sales
- Market Share by Retailer
- Consumer Spending Patterns
- Consumer Demographics
- Emerging Shopping Trends
- E-commerce Penetration
- Store Format Performance
- Product Category Performance
- Supply Chain Efficiency
Key Trends
- Adoption of E-commerce in Grocery Shopping
- Demand for Organic and Health-centric Products
- Growth of Discount Grocery Chains
- Implementation of Advanced Technologies in Retailing
- Increasing Popularity of Private Label Brands
- Shifts in Consumer Diet Preferences Towards Plant-Based Foods
- Evolution of Convenience Stores and Small Format Stores
- Importance of Sustainability in Packaging and Sourcing
- Increased Spending on Prepared Foods and Meal Kits
- Rise of Direct-to-Consumer Channels in Food Retailing