The global grocery retail market will generate an additional USD2.2tn in sales by 2024, growing by 24%, according to the latest forecast from international research organization IGD.
According to the forecast, Asia will see the biggest expansion, accounting for nearly 50% of the new sales produced between 2019 and 2024, while North America is set to produce 12% of the net sales to 2024. Elsewhere in Europe, the region should grab nearly 16% of new sales to 2024, with Western Europe generating almost two-thirds of these. Finally, Latin America has experienced a slowdown in growth in 2019 but is expected to bounce back in the short term.
“Asia’s importance to the global grocery market will continue to grow, with eight of the top 20 largest markets set to be in the region in five years’ time. China, India, Japan, and Indonesia will account for the majority of new grocery sales generated in Asia between 2019 and 2024. China will overtake the US in 2020 to become the largest grocery market in the world and will account for 43% of new grocery sales in Asia for the next five years. India will also grow in significance, accounting for nearly a fifth (23%) of new sales,” said IGD’s head of Asia Nick Miles.
Referring to Western Europe, Jon Wright head of EMEA said that Germany, France, Italy, Spain, and the UK combined will account for nearly two-thirds of all new sales generated between 2019 and 2024. Among the top five, Germany and Spain are set to grow faster.
“Discounters and the online channel are set to be the key drivers of growth to 2024, with both gaining shares versus established channels like hypermarkets and supermarkets. In discount, the continued expansion or regional retailers like Aldi and Lidl will underpin growth, but in specific countries, national champions like REMA, 1000, Netto and Eurospin will support this growth too. Online will benefit from more investment in improved delivery solutions,” Wright added.
As for Central and Eastern Europe, discount and supermarket channels will be responsible for most of the additional sales generated between 2019 and 2024 for the region, accounting for nearly 50% of grocery sales growth. Discounters will be the biggest contributors. X5’s Pyaterochka in Russia, Lidl across the region and Biedronka in Poland will continue to add stores to 2024, enabling shoppers to access their stores more frequently.