Global Grocery Sector To Grow By 24% By 2024, Says IGD
The global grocery retail market is to grow by 24% over the next five years, generating an additional $2.2 trillion in sales by 2024, according to research firm IGD.
According to the research firm, Asia will account for nearly 50% of these additional sales, while Europe will account for 16% and North America will account for 12% of new sales.
Latin America has seen a slowdown in growth in 2019, however it is expected to 'bounce back' in the short term, driven by an improved Brazil performance, according to IGD
“Germany, France, Italy, Spain and the UK combined will account for nearly two-thirds of all new sales generated between 2019 and 2024," commented Jon Wright, head of EMEA at IGD.
“Discounters and the online channel are set to be the key drivers of growth [in Western Europe] to 2024, with both gaining share versus established channels like hypermarkets and supermarkets. In discount, the continued expansion of 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.”
On Eastern Europe, Wright added, that the discount channel is likely to be the biggest contributor to sales growth over the next five years.
"X5’s Pyaterochka in Russia, Lidl across the region and Biedronka in Poland will continue to add stores to 2024, enabling new shoppers to access their stores more frequently," he said.
In Asia, China, India, Japan and Indonesia will account for the majority of sales growth, IGD said, with China set to overtake the US as the world's largest grocery market in 2022.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.