FOOD AND GROCERY

Global Food & Grocery Retail Market Overview

Global food and grocery plays a very important role in the market, Supermarkets,
hypermarkets, and specialist retailers are important industry participants. While the end
consumers are the key buyers, food and grocery product manufacturers, farmers, and
agricultural cooperatives are considered as key suppliers of food and grocery products.

Lack of switching costs and limitations in product differentiation lead to buyer mobility,
which forces larger retailers to maintain attractive pricing schemes. With the dynamics of the
industry, there is a constant strong pressure on players to adapt to fast-changing consumer
needs. To sustain the competition, market players should be prudent to position the desirable
product at a price suitable for customers and manufacturers.

Ever-rising population across the globe is one of the primary factors stoking the growth of the
market. Increasing disposable income is augmenting the affordability of premium food and
grocery products, which in turn is working in favor of the overall market. Thanks to changing
tastes and growing health consciousness, manufacturers are experimenting with cultivation
techniques and ingredients and can expect positive feedback for the same.

Rising awareness regarding health benefits of individual food and grocery product and
increasing health consciousness are encouraging consumers to ensure balanced diet. This
factor is also anticipated to bolster the growth of the market. Burgeoning prominence of
online grocery retail channels is estimated to provide a fillip to the market. Home delivery of
food and grocery products by shopping through online channels is very helpful especially for
working professionals.

Classification :

1.Unpackaged foods

2.Packaged foods

3.Drinks

4.Tobbacco

5.House hold products

Market size:

The global food and grocery retail market size is expected to reach USD 12.24 trillion by
2020, according to a new report by Grand View Research, Inc., progressing at a CAGR of
6.9% during the forecast period. The global food & grocery retail industry has been growing
steadily in recent years - a trend that looks set to continue over the forecast period. Growth in
this industry is mainly being driven by countries in the Asia-Pacific region. Countries such as
India, China, Indonesia have witnessed prominent growth due to increase in number of
modern outlets. Markets in some countries, especially in Western Europe, are mature and
facing saturation.

Rise in global population has a pivotal role to play in the development of the market.
Improving spending power of people is augmenting the affordability of premium food and
grocery products, which in turn is boosting the revenue generation of the market.
On the other hand, segments such as packaged food and drinks are anticipated to account for
sizeable shares in the market during the same period.

Market Share:

Key industry participants of the global market are Bharti Enterprises; Carrefour S.A.; Costco
Wholesale Corporation; Future Retail Limited; Koninklijke Ahold; The Kroger Co; and Wal-
Mart Stores, Inc. Countries in Asia Pacific are anticipated to be promising destinations for
market players .
The U.S. market for food and grocery retail has registered moderate growth over the past few
years. However, there are a few segments of the market that are likely to experience healthy
growth over the coming years. The market in Canada has also exhibited tepid growth over the
past few years. However, a slight acceleration in growth is expected during the forecast
period.

The market in India is slated to witness noteworthy growth over the forecast period. Rapid
expansion of the modern retail sector in the country is one of the key contributing factors.
Moreover, increasing urbanization and rising disposable income are supplementing the
growth of the country. The Netherlands market has fluctuated between stagnation and growth
in recent years.

Major Players:

1. The Kroger Co.

2. Albertsons

3. Royal Ahold Delhaize USA

4. Publix Super Markets

5. Aldi

6. H-E-Butt Grocery
 7. Neighbourhood Market/Market side (Walmart)

8. Wakefen/ShopRite

9. Whole Foods Market (Amazon)

10. South eastern Grocers

INDIAN FOOD AND GROCERY OVERVIEW:

The grocery business in India is distinctive in many ways, primarily due to the diversity
of consumers and the unique distribution models of the retail sector. From mom and pop
stores to giant supermarkets to online grocery stores, the grocery business in India
operates across channels. However, most of India's grocery business happens through
the unorganized sector, which mainly comprises of small stores, also known as kiranas.
There are over 12 million small stores in India and account for over 90% share of the
Indian F&G market, which is predicted to reach USD 810 Billion by 2020.

Indians have traditionally relied on mom and pop stores for their monthly f ood &
grocery needs. These stores have a personal connection with their customers and are
well versed in customer preferences,which in turn enables them to stock locally relevant
products. Indians prefer buying their monthly supplies from these local stores for
various reasons such as proximity, availability of credit, and the option to
return/exchange products.

The Bigger Picture: Globally, India is the sixth-largest grocery market and has a
humongous potential for growth due to the rising population as well as disposable
incomes. The Indian grocery market, which accounts for 69% of India's total retail
market, offers plenty of opportunities to retailers. Many retail players have tried tapping
into this potential without substantial results. The local kirana is still the epicenter of
Indian grocery business with 90% of distribution under its belt. Even as retail giants
battle against each other to become the consumer's habit when it comes to buying
grocery, the small stores have held their ground.

Players :
  Heritage

 Reliance fresh

 Spencers

 Big bazaar

 Apna bazaar

 Metro cash and cary

 Adani agrifresh

 Food bazaar

The Rise of E-grocery:

India is the fastest growing economy in the world and adapting to all types of technology
over the course of time. Online eCommerce is the best example showcasing usage of Internet
in the country. However, with rising disposable incomes and internet penetration, the
eGrocery market is expected to grow by leaps and bounds in the near future. The
eGrocery market size, which was worth USD 0.69 billion in 2017, is projected to grow
to 16 billion by 2020; translating to a staggering of 148% CAGR. The fact that India is
home to the youngest population in the world (avg. age - 27.6 yrs) plays a major role in
the predicted shift in the Indian grocery market. Equipped with disposable incomes and
smartphones, young consumers are internet savvy and prefer ordering their grocery
online, given their busy lifestyle. This change has majorly contributed towards creating
a dynamic market environment in India and has opened up opportunities for the
organized e-retail players.

Here is the list of top 10 most popular Online Grocery Shopping App & Website in India
2018.

 BigBasket
 Grofers
  ZopNow
 Amazon Pantry
 Flipkart Supermarket
 Nature’s Basket
 Spencer’s Online Grocery
 Paytm Mall
 DMart Online Grocery Shopping
 Reliance Smart

Articles:

1.Source:AnneL.Escaron,Meinen,Martinez-Donate"Supermarket and grocery store-Based

interventions to promote health foods choices and eating practices"2014,11:E79.

Researchers tend to show interest about food habits of consumers to know about what type
of food they are consuming .through this evidence based interventions we can understand the
purchase behaviour of consumers and now a days consumers are health aware so that they are
taking decisions in the store itself whether to buy or not.In this article evidence on
supermarkets and grocery store store interventions to prompt healthful food choices.

2.Source:Molley price"Grocery delivery and pickup are changing how we buy food for the
better"April 27th,2019

Retail industries are touched by technology so that online grocery stores are emerging and
they are using third parties like instacart walmart giving deliveries to people it makes easy for
the people to stay at home and get the grocery items.this article tells about online grocery will
save time like typing the items and adding the items to the cart will take less time rather than
walking all over the mart and it saves parking and traffic time also so that man can go to
shopping and cannot waste his time as well as awarding digital coupons will grab the
attention of the customers.
3.Source:Ameena batada"Prevalence of Artificial Food Colors in Grocery Store Products
Marketed to Children"june 6th 2016.

Artificial food colors (AFCs) in foods and beverages may be harmful to children. This study
assesses the percentage of grocery store products marketed to children that contain AFCs, by
category and company. The research team collected product and food-color information about
810 products in one grocery store in North Carolina in 2014. Overall, 350 products (43.2%)
contained AFCs. The most common AFCs were Red 40 (29.8% of products), Blue 1 (24.2%),
Yellow 5 (20.5%), and Yellow 6 (19.5%). Produce was the only category that did not have
any AFCs. The highest percentage of products with AFCs was found in candies (96.3%),
fruit-flavored snacks (94%), and drink mixes/powders (89.7%). Forty-one of the 66
companies marketed products containing AFCs. Given concerns about health effects of AFCs
and high proportions of high-AFC categories, clinicians, parents, food companies, and the
government can take steps to support children’s healthy eating and development by reducing
AFCs in children’s diets.due to this market for food and grocery is reducing.

4.Source : ‘Prospects and problems of Indian Retailing’ published by Amatul Baseer, G.

Laxmi Prabha (2007)

Amatul Baseer, G. Laxmi Prabha (2007) – ‘Prospects and problems of Indian Retailing’, this
study clearly states that there are actually lot of opportunities for retailing in India. Problems
accompany the opportunities, committing some mistakes and also high cost of equipment and
packaging material having impact on growth of the industry. Though the retail sector of India
is expected to grow rapidly over the next few years, it is needed to point out that this will
definitely not be a smooth ride. As the market develops, it will see its share of ups and downs
and just because it is at the nascent stage does not mean that the going will be necessarily
good. As there is increasingly challenging retailing in India, it requires competitive tools,
product development and differentiation and cost reduction.

5.Source : Effect of shopper attributes on retail format choice behavior for food and grocery
in India published by cherukuri jayasankara Prasad, ankisetti ramachandra aryasri (2011).
In this article titled effect of shopper attributes on retail format choice behavior for food and
grocery in India it was clearly stated that retailing is an biggest territory in India . Food and
grocery is the most promising area for setting up retail business in India. An understanding of
that retail format choice behavior will help the retailer to satisfy the customer to meet their
retail needs.