India is expected to replace Japan as the world’s third largest grocery market by 2016, according to the latest figures published by research and education charity IGD.
India was ranked fourth in IGD’s top 15 global grocery market rankings, released overnight, currently worth an estimated US$375bn.
This figure is forecast to rise to US$566bn by 2016.
China again topped the rankings as the world’s largest grocery market by value, worth over US$1tn, with the Asian nation likely to surpass the US$1.5tn mark over the next three years.
“China has had a surge in the number of higher-income earners, benefiting from a significant rise in wages,” IGD chief executive Joanne Denney-Finch said.
“This has resulted in a soaring demand for new products, brands and concepts – all of which have helped fuel its growth.”
Japan is likely to slip from third to sixth on the list of rankings by 2016, with its current market value (US$408bn) only expected to rise by US$15bn.
Brazil and Russia are likely to climb into the top five by 2016, with their grocery markets projected to be worth US$468bn and US$467bn respectively.
The US is tipped to retain its second ranking come 2016, with its current value (US$ 940bn) forecast to rise above US$1tn.
“By 2016, the top 15 global grocery markets will have a total value of US$6.5tn,” Denney-Finch said.
“The top five will increase their share to 65% - compared to 60% in 2012 - with a combined value of US$4.2tn.
“For food and consumer goods companies, the Asia-Pacific and Latin American grocery markets offer long-term growth opportunities, with many businesses already profiting from entering them.”
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