Asia’s grocery retail market will be significantly boosted by a rising population and increased shopper spend, with consumer spending in the region accounting for nearly half of additional sales generated to 2022.
Global growth will be driven by several factors including inflation, population growth and increased consumer spending on grocery products, IGD said.
Key findings from IGD’s global grocery forecasts to 2022 include:
• Asia’s grocery market will add US$1.2 trn in sales, which is more than Africa, Europe and Latin America combined, and will enjoy a compound annual growth rate (CAGR) of 6.6 per cent
• With a CAGR of 4.2 per cent, Europe is set to benefit from the biggest increase in shopper spend, driven by countries in Central and Eastern Europe (CEE)
• North America will add almost US$100bn to its grocery retail market by 2022
• Latin America’s market will be dominated by Brazil and Mexico, accounting for nearly 10 per cent of sales
Commenting on the latest forecasts, Jon Wright, head of retail Insight, IGD, said: “Our new global grocery forecasts reveal a positive outlook for the sector as we predict that most regions will experience faster growth to 2022 than forecast in 2016, representing excellent opportunities for retailers and manufacturers.
“However, an awareness of the underlying causes of growth in each region is key. Despite it being set to experience the strongest uplift, growth in Africa’s grocery market will be primarily driven by inflation rather than increased consumer spend. The most attractive and sustainable growth opportunities are in markets where sales increase will be due to population growth or consumers spending more money – for example, Asia, Latin America and North America.”
On Asia, Wright said: “With China, India and Japan all in our top five, Asia’s grocery market continues to be in rude health thanks to growing populations and shoppers with more disposable income. Innovations in this market also continue apace, especially in China, where retailers are experimenting to drive the online and convenience channels.”