Global Market Study on Food Retail: Supermarkets/hypermarkets Segment To Witness Highest Growth by 2020


  • Published On : Dec-2014 |
  • Pages : 86 Pages |
  • Format :

Rise in the global population, changing customer preferences and emerging economies are making the way for the food retail industry. It is a dynamically progressing industry and contributes to the development of several industries such as food packaging. Food Retail is categorized under distribution channel into four different segments: supermarkets/hypermarkets, independent and specialist retailers, convenience stores and others. Supermarket or hypermarket segment accounts for a comparatively larger market share.

Increasing customer preference towards private label brands, rising consumer spending on food items and increasing supermarket shopping culture are some of the major drivers of the market. Market share of independent and specialist retailers is expected to decline on account of rapid growth of other segments such as supermarkets/hypermarkets. The industry is facing challenges in the form of supply chain ineffectiveness and threat from unorganized players. However, the burgeoning middle-class population and increasing online retail shopping are offsetting these challenges and presenting growth opportunities for the industry.

Private label brands are priced lower than national brands as the supply chain and branding costs are low for the manufacturer and the stores providing private label brands. Owing to the economically crisis situation in Europe and to some extent in the U.S., consumers are increasingly switching to private label brands from national brands. Additionally, private label brands are sold in large quantities at food retail stores. Hence, the rising food consumption from these brands is escalating the growth of the food retail market.

The impact of the expanding private label brands market is expected to be high in the short and medium terms, and medium in the long term. Private label brands are expected to lose their share towards the end of the decade due to the expected recovery in European economy. This will eventually lead to retention of customers by the brands of organized food processing companies. The impact of increasing customer spending on food items is expected to be medium in the short term, and high in the medium and long terms. Certain issues such as unemployment and inflation are some of the factors that have kept the impact of increasing customer spending medium in the short run.

The intensity of rivalry is medium in the global food retail market with the presence of about 90 global companies and some regional companies. Healthy growth rate, high brand identity, and low product differentiation have increased the intensity of rivalry in the food retail industry. Higher concentration of organized retail in North America and Europe shows the stiff competition in the food retail industry in these regions. Exit barriers in the global food retail market are low owing to low investments in non-transferable fixed assets.

Key points covered in the report

  • The report provides historic, present and forecasted market size, analysis, trend, share, and growth 
  • The report provides the market size and forecast on the basis of distribution channels by value (USD million) for all geography
  • The report covers following segmentations
    • On the basis of distribution channel:
      • Supermarkets/hypermarkets
      • Independent and specialist retails
      • Convenience stores
      • Others
    • On the basis of geography:
      • North America
      • Europe
      • Asia Pacific
      • Rest of the World
  • The report provides company profiles of some of the leading companies operating in the market
  • The report also provides porters five forces analysis of the market

Increasing customer preference towards private label brands, rising consumer spending on food items and increasing supermarket shopping culture are some of the major drivers of the food retail market. Market share of independent and specialist retailers is expected to decline on account of rapid growth of other segments such as supermarkets/hypermarkets. The industry is facing challenges in the form of supply chain ineffectiveness and threat from unorganized players. However, the burgeoning middle-class population and increasing online retail shopping are offsetting these challenges and presenting growth opportunities for the industry.

The impact of the expanding private label brands market is expected to be high in the short and medium terms, and medium in the long term. Private label brands are those that are manufactured by small-scale food processing companies and supplied to food retailers at relatively lower prices compared to organized food processing companies. Private label brands are expected to lose their share towards the end of the decade due to the expected recovery in European economy. This will eventually lead to retention of customers by the brands of organized food processing companies. The impact of increasing customer spending on food items is expected to be medium in the short term, and high in the medium and long terms. Certain issues such as unemployment and inflation are some of the factors that have kept the impact of increasing customer spending medium in the short run. The influence of an increasing supermarket shopping culture is expected to be medium in the short term, and high in the medium and long terms. Changing eating habits and food preferences among urban consumers are some of the factors that are likely to drive the growth of supermarkets in developed countries in the medium and long terms.

Lack of supply chain effectiveness and threat from unorganized food retailers are the major restraint of the market. The impact of a lack of supply chain effectiveness in less developed countries is expected to be medium in the short and medium terms, and low in the long term. Government investment in infrastructure and the entry of global food processing companies in developing countries are expected to minimize the impact of supply chain-related restraints. The threat from unorganized players is expected to be high in the short term, medium in the medium term, and low in the long term. The number of organized players is increasing in developing countries due to increasing urbanization and per capita income. In India, discussions regarding foreign direct investment (FDI) in retail are currently under way, and if it is approved by the Indian government it may add benefits to the food retail industry.

Major players of the industry include:

  • Wal-Mart Stores, Inc.
  • Carrefour S.A.
  • Tesco Plc.
  • Metro AG.
  • AEON CO., LTD.
  • Seven and I Holdings Co., Ltd.
  • The Kroger Co.
  • Costco Wholesale Corporation.
  • Group Auchan SA.
  • REWE Group.
  • Other.
Back To Top