Asia will continue to be the biggest engine of growth in the grocery market in the next five years, with sales that exceed Europe and North America combined, according to new forecasts from research organisation IGD.
Asia’s grocery market is set to increase by more than $1 trillion – an annual compound growth rate 6.3% – while China will extend its lead over the US as the world’s biggest grocery market. India will come in third place, closing the gap, IGD said.
In contrast, the research group predicted that the fastest growth rate will be in Africa and the Middle East, albeit from a relatively small base, and that Europe and North America will enjoy similar annual compound growth rates of 3.5% and 3.6% respectively.
Nigeria and Egypt will be the two joint fastest growing markets in the top 15 between now and 2021, IGD added, recording compound growth of 11.3%.
IGD chief executive Joanne Denney-Finch said: “Although there are several risks to the global economy and a danger of new barriers to trade in particular, we are optimistic that these can be surmounted. We expect all regions to grow their grocery markets over the next five years, presenting big opportunities globally for manufacturers and retailers.
“Asia’s grocery market will continue to prosper with China remaining comfortably in first place and three other Asian countries within the top ten [India, Japan and Indonesia in third, fifth and eighth places respectively].
“Millions more people across Asia will become middle class, and many more consumer goods companies will view this region as the key to their growth strategy.
“Provided there is reasonable political stability, we expect the recent, fast-paced growth of the Mint countries (Mexico, Indonesia, Nigeria and Turkey) to keep attracting high levels of investment from retailers and manufacturers alike. Nigeria continues to impress as the fastest growing of all large-scale grocery markets in the world.”
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