Retail in Asia

In Sectors

Global food retail market to reach $8.5 trillion by 2020 

food retail

The global food retail market was valued at USD 5,643.6 billion in 2013 and is expected to grow at a CAGR of 6.1 % from 2014 to 2020, to reach an estimated value of USD 8,541.9 billion in 2020.

Rise in the global population, changing customer preferences, and emerging economies are making the way for the food retail industry.

Rising middle-class population is creating growth opportunities for food retail market and is expected to drive the market further. According to a U.S.-based research firm, about 1.5 billion households globally would be in the middle-class category by 2020, up from 1.2 billion households in 2012.

SEE ALSO: F&B growth to boost Hong Kong retail

Therefore, increasing online retail shopping through online retail formats such as in-store pickup and pure-play online grocers is expected to drive the food retail market in the years to come.

Government investment in infrastructure and the entry of global food processing companies in developing countries are expected to minimise the impact of supply chain-related restraints as it exists in many countries.

Asia-Pacific is the largest market for food retail. Increasing per capita income, growing level of education, smaller families and increasing urbanisation and westernisation are the key factors driving the growth of food retail industry in this region.

Supermarket or hypermarket segment holds the largest share of the overall market in 2013 at USD 2,925.8 billion and is expected to reach USD 4,448.5 billion by 2020 at a CAGR of 6.2 % during 2014 to 2020.

According to a new market report published by Persistence Market Research “Global Market Study on Food Retail: Supermarkets/hypermarkets Segment To Witness Highest Growth by 2020.”

(Source: Digital Journal)