Mainstreaming of the Wellness Trend to Shape the Food Retail Industry in 2015

Competition in the food retail industry is moderately intense. Currently, there are around 90 global enterprises and several regional companies operating in the global food retail market. However, the healthy growth rate of the food retail industry has resulted in an increased rivalry among competitors. Persistence Market Research (PMR) forecasts that the global food retail market will grow at a 6.1% CAGR during the forecast period of 2014 to 2020. The market was estimated at US$5,643.6 billion in 2013 and will expand to reach total revenue of US$8,541.9 billion by 2020.

Read Full Report: http://www.persistencemarketresearch.com/market-research/food-retail-market.asp

High-brand identity and low product differentiation are two other factors that are further shaping the competitive landscape of the global food retail industry. Wal-Mart Stores, Inc., Tesco Plc, Carrefour S.A., Metro AG, Seven and I Holdings Co., Ltd., AEON CO., LTD., Group Auchan SA, Costco Wholesale Corp., and REWE Group are the top market players operating in the global food retail industry.

Top 3 Market Forces Driving the Food Retail Industry

The global food retail industry will grow by billions in the foreseeable future. Factors such as the flourishing middle-class population and increased preference for online retail shopping are creating good growth opportunities for market players in the food retail industry. However, the top three trends shaping the global food retail industry are the growing wellness awareness, expanding supermarket shopping culture, and growing market opportunities in Asia-Pacific.

Retailers to Exploit the Mainstreaming of the Wellness Trend

  • In 2013, the sector of healthy eating, nutrition, and weight loss in the global wellness market was estimated at a whopping US$574 billion.

  • The wellness trend, which began as a fringe movement for people interested in organic and healthy food, has now become a popular trend in several countries. This has resulted in consumers seeking healthy food products that go beyond the traditional health categories.

Supermarket Shopping Culture to Woo More Consumers

  • Growing consumer preference towards private label brands along with elevated spending on food items and the rising supermarket shopping culture will drive the global food retail industry.

  • Furthermore, market share of independent and specialist retailers is anticipated to decline on the account of rapid growth of other sectors such as hypermarkets/supermarkets.

  • In 2013, the supermarket/hypermarket segment held the largest share in the food retail industry and was worth US$2,925.8 billion. With a CAGR of 6.2% during the forecast period, this sector is estimated to reach a market value of US$4,448.5 billion by 2020.

Asia Pacific to Continue to Hold its Bright Spot

  • In 2013, the Asia Pacific food retail industry was valued at US$1,909.2 million.

  • According to a PMR analyst, the Asia Pacific food retail market will continue to lead the global market and will grow at 7.2% CAGR during the forecast period.

  • Market forces shaping the Asia Pacific food retail industry include rising per capita income, smaller families, and increasing level of education and urbanization.

Though the global food retail industry will exhibit good growth in the coming years, the market is challenged to a great extent by the lack of an effective supply chain in developing nations. Moreover, the hurdle of unorganized food retailers will also continue to suppress the food retail market worldwide.

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