The world’s leading 20 global grocery markets are set to generate an additional US$1.9 trillion (Cdn$2.5 trillion) in sales by 2023, according to new figures from IGD.
Canada is ranked #18 on IGD’s top 20 list, with grocery sales of US$102.7 billion (Cdn$137 billion) in 2018. That is predicted to rise to US$120.2 billion (Cdn$160.4 billion) by 2023, a 17 per cent increase.
New forecasts predict that sales in the top 20 could grow by 28 per cent between 2018 and 2023.
- Nearly half (44 per cent) of the extra sales will be created in Asia, which will add more than Africa, Europe and Latin America combined
- Asia as a region will contain seven of the world’s largest grocery markets by 2023, with a combined market size of US$3.8 trillion (Cdn$5 trillion).
- Europe will be the second most important region in terms of additional sales between 2018 and 2023. It is forecast to generate US$322 billion (Cdn$429 billion) in new sales in the timeframe.
Commenting on North America, IGD Canada programme director Stewart Samuel says “the US market heavily influences the region’s performance given its size. The outlook is for a fairly low growth scenario, meaning that retailers and manufacturers need to focus on the growth opportunities provided by the online channel and discount retail, as these will be the fastest growing channels over the period.
“The North American market is seeing significant investment in online grocery retail, particularly in terms of supply chain and fulfilment. There is a big focus on making the channel more efficient which involves lots of testing of different solutions. Albertsons and Ahold Delhaize have partnered with Takeoff Technologies for hyperlocal fulfilment, Kroger partnered with Ocado. These investments suggest that retailers view the channel as being materially more important in the future.”