Key Highlights
- The global food retail market was valued at approximately $11.7 trillion in 2022
- Online grocery shopping sales in the US reached $128.5 billion in 2022, representing a 24% increase year-over-year
- The percentage of consumers shopping for groceries online increased from 31% in 2018 to 49% in 2022
- The organic food segment in retail was valued at over $70 billion globally in 2023
- In 2022, Millennials accounted for 31% of all grocery shopping trips in the US
- Discount stores dominate the food retail sector, representing around 58% of total grocery retail sales in the US in 2022
- The average American household spends approximately $7,316 annually on food, including dining out, in 2023
- The use of self-checkout lanes increased by 40% in North American supermarkets during 2022
- The COVID-19 pandemic accelerated the adoption of contactless payment methods in food retail stores by 25% in 2022
- Food retail e-commerce sales account for approximately 8% of total grocery sales worldwide in 2023
- The average grocery store size in the US decreased slightly from 45,000 sq ft in 2018 to 44,000 sq ft in 2022 due to a shift toward smaller-format stores
- Private label products now constitute about 20% of total grocery sales in the US in 2023, a rise from approximately 18% in 2018
- Millennials are responsible for over 40% of organic food purchases in the US as of 2023
The food retail industry is undergoing a seismic shift, fueled by a booming $11.7 trillion global market, rising online sales that reached $128.5 billion in the US, and a growing consumer appetite for organic, sustainable, and tech-savvy shopping experiences.
Consumer Behavior and Demographics
- The percentage of consumers shopping for groceries online increased from 31% in 2018 to 49% in 2022
- In 2022, Millennials accounted for 31% of all grocery shopping trips in the US
- The average American household spends approximately $7,316 annually on food, including dining out, in 2023
- Millennials are responsible for over 40% of organic food purchases in the US as of 2023
- As of 2023, about 38% of consumers prefer shopping at stores with sustainable and eco-friendly practices
- In 2022, about 60% of US consumers used a mobile app for grocery shopping or grocery-related activities
- Loyalty program participation in grocery retail increased to over 70% in 2022, with digital integrations boosting participation rates
- The percentage of grocery stores offering curbside pickup increased from 20% in 2019 to 65% in 2022, driven by consumer demand for convenience
- In 2023, 55% of US grocery shoppers used digital coupons or discounts, an increase from 45% in 2019, indicating rising digital engagement
- More than 80% of consumers in the US are concerned about food sourcing transparency, emphasizing demand for ethical and sustainable sourcing practices
- Nearly 50% of grocery shoppers in the US use mobile scan-and-go apps for checkout in 2023, reflecting convenience trend
- Food retail loyalty members tend to spend 15% more per visit than non-members, highlighting the importance of customer retention programs
- The average age of grocery store shoppers in the US was 48 years in 2023, indicating a mature customer base
- The influence of social media marketing on food retail purchasing decisions increased by 19% from 2019 to 2023, demonstrating the importance of digital presence
Consumer Behavior and Demographics Interpretation
Market Size and Growth Trends
- The global food retail market was valued at approximately $11.7 trillion in 2022
- Online grocery shopping sales in the US reached $128.5 billion in 2022, representing a 24% increase year-over-year
- The organic food segment in retail was valued at over $70 billion globally in 2023
- Discount stores dominate the food retail sector, representing around 58% of total grocery retail sales in the US in 2022
- The use of self-checkout lanes increased by 40% in North American supermarkets during 2022
- Food retail e-commerce sales account for approximately 8% of total grocery sales worldwide in 2023
- The average grocery store size in the US decreased slightly from 45,000 sq ft in 2018 to 44,000 sq ft in 2022 due to a shift toward smaller-format stores
- Private label products now constitute about 20% of total grocery sales in the US in 2023, a rise from approximately 18% in 2018
- The number of grocery stores in the US has declined slightly from about 38,500 in 2018 to 37,000 in 2022, indicating consolidation in the industry
- The fastest-growing segment within food retail is plant-based products, with a growth rate of approximately 15% annually in 2023
- The average grocery store stocks over 45,000 different SKUs, according to recent industry data from 2022
- Food delivery and meal kit services grew by 18% in 2022, especially among urban millennials and Gen Z
- Specialty food stores accounted for approximately 7% of food retail sales in the US in 2023, up from 5% in 2018, indicating growth in niche markets
- Cold storage capacity in food retail supermarkets increased by 10% globally from 2018 to 2023, to meet growing demand for frozen and refrigerated goods
- The organic fruits and vegetables segment held approximately 30% of the produce market share in the US in 2023, reflecting consumer preferences for healthier options
- The share of grocery sales made via subscription box services increased by around 12% in 2022, indicating growing consumer interest in curated food products
- The use of vertical farming and indoor farming techniques in retail food production increased by 15% globally from 2019 to 2023, supporting local and sustainable produce
- The prepared foods and meal solutions segment grew by 12% in 2023, reflecting busy lifestyles and increased demand for convenience foods
- Food retail employment in the US comprised approximately 12 million jobs in 2023, including jobs in supermarkets, convenience stores, and wholesale food markets
- The largest grocery retailer chain in the world by revenue as of 2023 is Walmart, with annual sales exceeding $570 billion
- The online alcohol and beverage segment in retail is expanding, with e-commerce representing 10% of total alcohol sales globally in 2023
- The use of biodegradable packaging in food retail has increased by 35% globally between 2018 and 2023, driven by environmental concerns
- The total value of food retail franchise industry in North America was estimated at $194 billion in 2023, showing robust growth and investment potential
- Urban grocery stores tend to be smaller, averaging about 15,000 sq ft, compared to suburban stores which average around 45,000 sq ft, due to space constraints
- Consumer preference for health-conscious products has resulted in a 22% increase in sales of gluten-free and allergen-free products in 2023, according to industry reports
- The percentage of grocery stores offering plant-based meat products increased from 10% in 2018 to over 35% in 2023, showing significant market penetration
- The global cold chain logistics market, crucial for food retail, was valued at around $220 billion in 2022 and is projected to grow at a CAGR of 7% through 2027
- Gourmet and specialty foods within retail grew by approximately 12% in 2023, driven by increasing consumer interest in premium products
- Online bakery and prepared meal sales grew by 16% in 2023, reflecting increased consumer demand for fresh, customized foods delivered to their homes
- Food retail businesses with a focus on local sourcing accounted for approximately 55% of total produce sales in the US in 2023, a 10 percentage point increase since 2019, emphasizing consumer demand for local food
- Fresh produce delivery services grew by 24% in 2022, driven by consumer preferences for freshness and convenience
Market Size and Growth Trends Interpretation
Operational and Sustainability Practices
- Food waste in retail supermarkets in the US is estimated at 10% of total produce, costing retailers around $20 billion annually
- Food retailers spent nearly $4 billion globally on sustainability initiatives in 2022, including waste reduction and renewable energy projects
- Food retail stores that implement energy-efficient lighting and HVAC systems reduced their energy costs by up to 15% in 2022, contributing to sustainability goals
Operational and Sustainability Practices Interpretation
Product Segments and Private Labels
- Food retail stores with store-brand products generate around 25% higher profit margins on those items compared to national brands, according to 2022 data
Product Segments and Private Labels Interpretation
Technological Innovations and digitalization
- The COVID-19 pandemic accelerated the adoption of contactless payment methods in food retail stores by 25% in 2022
- The use of artificial intelligence in grocery supply chain management increased by 37% in 2022, improving inventory and demand forecasting
- The food retail sector saw an increase in automation, with around 25% of stores deploying robots for tasks like stocking and cleaning in 2023
- In 2022, grocery stores that adopted advanced data analytics saw a 20% increase in sales compared to stores that did not, demonstrating the impact of data-driven decision-making
- The adoption of blockchain technology for supply chain transparency in food retail increased by 20% in 2022, aiming to improve traceability and consumer trust
- The majority of grocery supermarkets (about 75%) now incorporate some form of digital signage for marketing and customer engagement, increasing in-store sales
Technological Innovations and digitalization Interpretation
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