Over the same period, India’s market will have also seen significant growth to the point of overtaking Japan to become the world’s third largest grocery consumer with a value of US$566bn.
Indeed, all of the BRIC nations are expected to feature among the top five grocery markets by 2016, with a value worth just over US$3tn in total.
Opportunity for growth
“For food and consumer goods companies, the Asia-Pacific and Latin American grocery markets offer long-term growth opportunities, with many businesses already profiting from entering them,” said Joanne Denney-Finch, chief executive, IGD.
“The Chinese grocery market, in particular, has been growing at a rapid pace for several years. Representing one fifth (20%) of the world’s population, China has had a surge in the number of higher-income earners, benefiting from a significant rise in wages. This has resulted in a soaring demand for new products, brands and concepts – all of which have helped fuel its growth.”
Both international and domestic grocery retailers have been expanding quickly in China, with diverse formats and entering new regions. According to IGD, this not only creates new supply chain opportunities for manufacturers, but also presents a wealth of choice for Chinese shoppers.
“In Latin America, Brazil is also an attractive growth market for global grocery players. Over the next few years, Brazil will be hosting big sporting events such as the World Cup and Summer Olympic Games, presenting a further boost for its economy and for the performance of retailers and manufacturers operating in the region,” added Denney-Finch.
By 2016, IGD expects the top 15 global grocery markets to have a total value of US$6.5tn. The top five, which features the US alongside the BRICs, will increase their share to 65%, compared to 60% in 2012 with a combined value of US$4.2tn.
“This offers plenty of scope for food and consumer goods companies seeking international growth and paints a positive picture for the industry globally,” said Denney Finch.