China, the world’s biggest food and grocery market, is now valued at more than US$1 trillion and is forecast to be worth US$1.5 trillion in 2016, according to research firm IGD.

The US grocery market will remain the second largest globally and is predicted to be worth US$1.1 trillion in 2016.

And India will overtake Japan to become the world’s third largest grocery market by 2016, valued at US$566 billion.

The research further predicted that all of the BRIC (Brazil, Russia, India, China) nations will be in the top five grocery markets by 2016, worth just over US$3 trillion in total.

“For food and consumer goods companies, the Asia-Pacific and Latin American grocery markets offer long-term growth opportunities, with many businesses already profiting from entering them,” said IGD CEO Joanne Denney-Finch.

“The Chinese grocery market, in particular, has been growing at a rapid pace for several years. Representing one fifth (20 per cent) of the world’s population, China has had a surge in the number of higher-income earners, benefiting from a significant rise in wages. This has resulted in a soaring demand for new products, brands and concepts – all of which have helped fuel its growth.”

Denney-Finch said international and domestic grocery retailers are expanding quickly in China with diverse formats and entering new regions.

“This not only creates new supply chain opportunities for manufacturers, but also presents a wealth of choice for Chinese shoppers,” said Denney-Finch.