Asia will continue to be the biggest engine of growth in the grocery market with its sales set to exceed those of Europe and North America combined within five years, according to new forecasts from research organisation IGD.
Global growth will be driven by a combination of inflation, population and rising incomes.
Highlights from IGD’s latest global grocery forecasts to 2021 include:
* Asia’s grocery market is set to increase by $1.073 trillion, an annual compound growth rate (CAGR) of 6.3 per cent.
* China will extend its lead over the US as the world’s biggest grocery market, with India in third place closing the gap.
“Although there are several risks to the global economy and a danger of new barriers to trade in particular, we are optimistic these can be surmounted,” says IGD chief executive Joanne Denney-Finch. “We expect all regions to grow their grocery markets over the next five years, presenting big opportunities globally for manufacturers and retailers.”
Asia’s grocery market will continue to prosper with China remaining comfortably in first place and three other Asian countries within the top 10, Denney-Finch says. “Millions more people across Asia will become middle class, and many more consumer goods companies will view this region as the key to their growth strategy.”
IGD’s projected figures for 2021 show that China’s grocery market will be worth $1612 billion with a CAGR of 5.5 per cent.
This compares with a market worth of $1.311 trillion for the US, with a CAGR of 3.6 per cent.
India comes in third with a $735 billion market and a CAGR of 9.1 per cent.
Japan is in fifth place after Brazil with a $399 billion market and a CAGR of 0.7 per cent.
Rounding up the top markets in Asia is Indonesia, in eighth position with a market value of $305 billion and a CAGR of 9 per cent.
A food and grocery research and training charity, IGD defines the grocery retail market as all food, drink and non-food products – such as health and beauty, pet care, clothing, DIY – sold through retail outlets selling predominantly food. Modern retail formats, such as supermarkets and hypermarkets, are included as well as traditional retail formats like markets and traditional food stores such as bakers. It excludes wholesale and foodservice formats and drugstores/pharmacies.