Asian grocery growth to outpace Europe and North America combined

By RJ Whitehead

- Last updated on GMT

© iStock
© iStock

Related tags: Asia

Asia will remain the biggest engine of growth in the grocery market with sales expected to exceed those of Europe and North America combined within five years, according to new forecasts. 

Global growth will be driven by a combination of inflation, population and rising incomes, research analyst IGD found in a forecast of the category until 2021. 

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Its report estimates that Asia’s grocery market will increase by US$1.1bn at an annual compound growth rate 6.3%.

Asia’s grocery market will continue to prosper with China remaining comfortably in first place and three other Asian countries within the top 10. 

China will extend its lead over America as the world’s biggest grocery market, with India closing the gap from third place.

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​,” said Joanne Denney-Finch, chief executive of IGD

However, the fastest growth rate will be seen in Africa and the Middle East, albeit from a relatively small starting point.

Europe and North America, meanwhile, will enjoy comparable annual compound growth rates of 3.5% and 3.6% respectively.

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​,” said Denney-Finch. 

We expect all regions to grow their grocery markets over the next five years presenting big opportunities globally for manufacturers and retailers​.” 

She predicted that the so-called MINT fast-developing countries of Mexico, Indonesia, Nigeria and Turkey would continue to see recent rapid growth continuing “provided there is reasonable political stability​” while attracting high levels of investment from retailers and manufacturers. 

Nigeria continues to impress as the fastest growing of all large-scale grocery markets in the world, the report added.

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