Europe Food and Grocery Retail Market 2022-2028

Europe Food and Grocery Retail Market 2022-2028

Europe Food and Grocery Retail Market Size, Share, & Analysis by product (packaged foods, unpackaged foods, beverages, other household products), and by distribution channel (offline, and online).The European food and grocery retail market is estimated to grow at a CAGR of 4.0% during the forecast period. The market was valued at $1.7 trillion in 2021, which is expected to exceed $2.3 trillion in 2028. Various pivotal factors such as increasing disposable income, cohesive government policies, and heavy investments in the retailing sector are driving the European food and grocery retail market. The food and grocery retail sector will endure the growing trend owing to the efforts to provide enhanced customer convenience and sectoral consolidation through alternative grocery outlets (such as e-retail) and payment methods. Moreover, a constant economic growth especially in Eastern Europe is anticipated to generate significant demand for retailer outlets. Whereas an innovation in the retail sector is estimated to create more prospects to place consumer-oriented, high-value products, on store shelves and e-retail platforms.The expansion of supermarkets, hypermarkets, and other modern food and grocery retail formats has been witnessed in Europe, in recent times. Particularly in developed economies such as UK, France, and Germany, among other EU region, the concentration in food and grocery retailing, with the introduction of newer sales channels has risen rapidly. COVID-19 Impact on Food and Grocery Retail Industry

A high-risk of getting COVID-19 infection, and maintaining the stringent social distancing norms, and health implications have led individuals to stay home. Further, the implementation of timely nation-wide lockdowns forced the buyers to stay home and order all the essential items through online platforms. In addition, the institutions such as schools, and academic organizations were closed, and the majority of the consumers prefer home-prepared food as a safer option, shifting millions of consumers towards home-made food, driving the growth of grocery through the retail channel. In 2021, a higher growth in 2021 was registered compared to the preceding years in the retail food and grocery industry. A growth of 6.3% YoY in 2021 was witnessed in the country and the market had reached more than $1.8 trillion in 2021.Segment Analysis

The report analyses the European food and grocery retail market based on packaged foods, unpackaged foods, beverages, and other household products. The scope of the packaged foods includes staple foods, dairy products and alternatives, snacks, and cooking ingredients, and ready to eat meals offered by the companies in the region. The COVID-19 pandemic had a significant impact on packaged and fresh food. Consumers in multiple markets have responded to the likelihood of quarantine by stockpiling food products. The operations of foodservice providers have been shut down; hence, the eating occasions have increasingly shifted into the home. Subsequently, the sales and growth of the food products have surged drastically in the e-commerce retail. As the adversarial impacts of COVID-19 will see customers reduce expenses on food as disposable income falls, the prospect looks less promising in long term. Packaged food market is expected to hold the largest market share during the forecast period. The market is expected to reach nearly $1.5 trillion in 2028 from $1.1 trillion in 2021, growing at a CAGR of 4.1% during the forecast period. Regional Analysis

The market has been segmented into UK, France, Germany, Italy, Spain, and the Rest of the World. Germany holds the largest market during the forecast period and is expected to reach $342 billion in 2028 from $264 billion in 2021, however, at a modest CAGR of 3.4% during the forecast period. UK is expected to register a significant growth rate during the forecast period owing to continuous growth and Brexit; as it is expected to increase the cost of import by a slight level from other European countries in the near future. The rest of Europe, which includes Russia, the Netherlands, Denmark, Ukraine, Portugal, among other cumulative make the market $667 billion in 2021 which is further expected to reach $938 billion in 2028, growing at the fastest CAGR of 4.7% during the forecast period. Strong economic growth, especially from the Eastern European countries such as Russia and Ukraine, are among the key factor for the fastest growth rate of the rest of Europe.