China has overtaken the US as the world’s largest grocery retail market.
The IGD reports that the Chinese grocery sector was worth £607bn at the end of 2011, while the US market came in at £572bn over the same period.
By 2015, the IGD forecasts the Chinese market is forecast to be worth £918bn compared to a US value of £675bn.
Between 2011 and 2015, the US grocery retail market should see growth accelerating to reach a compound annual growth rate (CAGR) of 4.2%, but China’s rate will be double this at 10.9% over the same period.
The UK grocery market will be the eighth largest in the world by 2015, worth £162bn, and achieving a CAGR of 3.2% between 2011 and 2015.
Brazil, Russia, India and China will be in the top five grocery markets by 2015, with India displacing Japan as the world’s third largest grocery market by value
IGD chief executive Joanne Denney-Finch said: “China’s grocery growth story is phenomenal. Between 2006 and 2015, the Chinese grocery market is forecast to triple in value and to be worth nearly a trillion pounds. This rapid expansion has been fuelled by three main factors: rapid economic growth, population and rising food inflation.
“Despite its various logistical and bureaucratic challenges, China is a crucial growth market for many of the world’s largest grocery retailers.”
She added: “In the UK, we expect the online sector to perform well, with internet sales boosted by the increasing use of smartphones and tablet computers. Convenience stores, with their increased focus fresh food and tailoring the store depending on local demand, are also expected to be key performer.”
See below for the full IGD forecast: