Asian grocery market to top US$4.26 trillion by 2023
The Asian grocery market will generate US$4.26 trillion (NZ$6.34 trillion) of sales by 2023 – almost the same as Europe and North America combined.
The figures are derived from new market forecasts from food and consumer goods research organisation IGD Asia.
The findings show that the Asian grocery market, already the largest in the world, is expected to grow by a CAGR of 6 per cent between 2018 and 2023.
The grocery market will be worth US$4.26 trillion by 2023, up from US$3.13 trillion (NZ$4.66 trillion) last year. Its share of global grocery spend will be 37 per cent in 2023, adding around US$1.14 trillion (NZ$1.7 trillion) to the global grocery market through to 2023.
China, India and Indonesia will be the biggest contributors to the region’s top-line growth, accounting for 74 per cent of new sales added by 2023.
“Asia will continue to extend its position as the world’s largest grocery market over the next five years,” said head of Asia-Pacific at IGD Nick Miles, “contributing more additional sales to the global grocery market than the next three fastest-growing regions in value change terms – Europe, Africa and Latin America.”
IGD predicts the top five Asian grocery markets will account for 83 per cent of the region’s grocery sales in 2023, and 78.8 per cent of total growth over the next five years.
China will extend its position as the region’s leading grocery market. Despite growth slowing, it is still expected to have a CAGR of 6 per cent until 2023.
Said Miles: “Online retailers will have an increasing influence on China’s grocery landscape, with partnerships fuelling the digitisation of retail.
Retailers’ geographic focus is shifting as first-tier cities become saturated and as such, they are looking to establish a presence in lower tier cities. Also, new manned and unmanned store concepts are likely to emerge and change the face of physical retail.
“Asia’s food and consumer goods market possesses huge growth opportunities: The combination of the largest regional grocery market and strongest real growth prospects of any region means Asia should be on any suppliers’ radar for growth.
“Convenience and online will see the fastest growth. Asia’s market landscape is very diverse, but we expect the convenience and online channels to see the greatest investment and fastest growth over the next five years. Asia is also a hotbed for innovation and we can expect this to accelerate over the next five years, with retailer partnerships and new technologies driving change,” Miles said.
This story first appeared on sister site, Inside Retail Asia.