- TechNavio analysts predict the market to grow to US$839.5 billion by 2016
- More than 77 per cent of the market falls under Supermarkets and Hypermarkets
- Key vendors include Publix Super Markets, Safeway, SuperValu, The Kroger, Wal-Mart Stores
Increasing demand for convenience foods and increasing adoption of In-store systems with advanced technology is driving the growth of the modern grocery retailing market in the US, as per the latest research findings by TechNavio.
With a population of more than 313.9 million, US is the second largest grocery market in the world, after China. The Americans spend more than 20 percent of their income on food, housing, and non-alcoholic drinks and modern grocery retailers in the country accounting for 84 percent of the revenue in the total grocery retailing market in the US.
Among the different retail formats, supermarkets are leading the modern grocery retailing market in the US, in terms of market share, followed by hypermarkets. Wal-Mart is the leading vendor in the Modern Grocery Retailing market in the US, accounting for 25.2 percent of the market share in 2012. Kroger following Wal-Mart, accounting for 8.1 percent share of the market as of 2012.
Despite the growth opportunities, the modern grocery retailing market in the US is facing challenges like intense competition in the market. Many new vendors are entering the market making it more and more fragmented. Further, existing vendors in the market are coming up with innovative ideas and concepts for their products, to differentiate themselves from others and to meet the changing consumer needs. Another challenge, which is hindering the growth of this market, is the negative impact of food inflation.
However, despite the presence of serious challenges, the modern grocery retailing market in the US has the potential to grow rapidly in the future due to some trends that are expected to exert a positive influence on the market during the forecast period. One such trend is the increasing number of private label brands and changing consumer demographics.
Comparison of CAGR of the Traditional and Modern Grocery Retailing Market in the US 2012-2016 (percentage)
Source: TechNavio Analysis
Speaking on this occasion, TechNavio’s senior analyst and co-author of this report said, “Consumers are shifting from traditional grocery retailing to modern grocery retailing because they currently look for convenience and fun while shopping. Modern grocery retailing enables consumers to combine the idea of grocery shopping with leisure. Further, the market has been witnessing a change in consumer demographics such as a growing demand from Hispanics and a growing number of male shoppers, who prefer shopping at modern grocery retailing outlets rather than traditional ones. This will further cause a decline in the traditional grocery retailing market. What needs to be seen is how innovatively, grocery retailers will increase their footfall, and coax their existing customers to visit their outlets more frequently at the backdrop of the negative effects of economic slowdown.”
To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of drivers, challenges, and trends of this market featuring data on product segmentations, vendor shares, growth rate by revenue, and an evaluation of the different buying criteria in order of importance.
TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape of the modern grocery retailing market in the US. Our analysts obtain the information using a combination of the bottom-up and top-down approaches, besides using in-house market modeling tools. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information on this topic and our upcoming research on https://www.technavio.com/report/modern-grocery-retailing-market-us-2012-2016 please send an e-mail to enquiry@TechNavio.com.
About TechNavio
TechNavio is a leading technology research and advisory company with a global coverage. We focus on emerging technology trends that can shape the market. We identify and explain these trends to our customers to help them take better decisions.
TechNavio models the trends using a mix of quantitative and qualitative tools in its proprietary research methodologies. We build forecasts across market segments and geographies based on the trends identified. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a changing market scenario.
Decision makers and influencers in sales & marketing, strategy, product and R&D teams rely on research from TechNavio. We have a large and growing base of happy customers worldwide. Our customers include technology suppliers, end users, consulting companies, investment firms and research institutes.
Founded in 2003, TechNavio has about 200 analysts globally. We cover more than 500 technologies across 80 countries. Our analysts are closely monitoring the market every day by talking to all the industry participants. We have proprietary databases that provide us with a complete perspective of the market. TechNavio develops over 2000 pieces of research deliverables every year.
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