Rise of the Middle Class to Help Expand Global Food Retail Industry

  • Published On : Dec 29, 2014
The global food retail industry is one of the largest industries in the world. Besides being a voluminous industry in itself, it is a major driver of other industries such as food packaging and shipping. It is a dynamic industry which is in the middle of changes that could transform this industry forever.

Segmentation of the Global Food Retail Industry

The food retail industry is divided by the type of distribution channel into four segments: independent and specialist retailers, convenience stores, super/hypermarkets, and others. Independent and specialist retailers are the traditional face of the global food retail industry, whereas the super/hypermarkets are now the dominant segment of retail food outlets.

Super/hypermarkets held more than half of the global food retail industry in 2013: US$2,925.8 billion out of the total global value of US$5,643.6 billion. The super/hypermarket segment is expected to grow at a CAGR of 6.2% during the forecast period of 2014-2020 and reach a value of US$4,448.5 billion at the end of it.

According to geography, the food retail industry is divided into four categories: North America, Europe, Asia Pacific, and Rest of World. Asia Pacific is the dominant regional market due to the expanding population and increasing development in countries like China and India. The Asia Pacific food retail market increased at a CAGR of 7.2% from 2010 and stood at a value of more than US$1900 billion in 2013, more than a third of the global food retail market.

Europe holds second spot in the geographical categorization, largely due to the large number of megastore chains present in the region. North America is next, with Rest of World bringing up the rear. The latter is, like Asia Pacific, is in the midst of a wave of increasing development and has held a high growth rate for the past few years.

Drivers and Restraints of the Global Food Retail Market

The major driver of the worldwide food retail market is the emergence and rise of the newly strengthened middle class in developing economies. While the worldwide population increase helps the food retail market, it is the middle class boom that has given a big boost to the food retail market. There were about 1.2 billion middle class households all over the world in 2012, of which more than 375 million were to be found in India and China. The number of middle class households worldwide is expected to rise to 1.5 billion by 2020, creating countless opportunities in the worldwide food retail market.

An increasing prevalence of the supermarket culture is also a major driver for the expansion of the global food retail market. Independent retailers, the face of the food retail market, are losing out to the expansion of supermarkets.

The emergence of the online retail market has also started to alter the global food retail market. Owing to the typically busy modern lifestyle, the convenient option of shopping online is preferred by many. The online retail food market is expected to be a significant segment of the worldwide food retail market and provides growth opportunities for the global market.

The lack of an efficient supply chain is a hindrance for the global food retail market in developing and undeveloped countries. However, this hurdle is expected to be overcome as an inevitable consequence of globalization.

Major Players in the Global Food Retail Market

The report covers major players in the food retail market: Wal-Mart Stores, Inc., Costco Wholesale Corporation, Tesco Plc, Carrefour S.A., AEON CO., LTD., REWE Group, Seven and I Holdings Co., Ltd., Metro AG, The Kroger Co., Group Auchan SA.

The global food retail market was valued in 2013 at US$5,643.6 billion. It is expected to grow at a CAGR of 6.1% during the forecast period of 2014-2020, and reach US$8,541.9 billion by the end of it.

Browse Full global food retail market Research Report With Complete TOC @ https://www.persistencemarketresearch.com/market-research/food-retail-market.asp
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