Where Consumers Shop for Staple Foods

Delivery

This report comes in PPT.

Key Findings

Grocery price inflation hits staple foods sales in value terms in 2022

In 2022, while the overall industry grew by 2% in constant value terms, inflation hit the market and pushed sales growth in current terms, with a 4% increase globally amid stagnating volume sales. As affordability becomes a priority amid the inflation surge, consumers tend to switch to private label and seek cheaper outlets.

In offline retailers, large grocery retailers dominate but small grocery sees stronger growth

The share of offline retail channels has been declining due to a continuous consumer shift to e-commerce, but supermarkets are still located at the forefront. Small local grocers recorded the greatest growth with their strong presence in developing markets.

E-commerce continues to grow post-pandemic with continued innovation

E-commerce continued its strong performance in 2022, by sustaining organic growth across the categories. Asia Pacific is the regional leader in e-commerce sales of staple foods; China takes the lead in absolute value sales and South Korea is the largest market in terms of the e-commerce share of staple foods.

Consumers will continue to be price-sensitive in the near term

Amid ongoing inflationary pressures, discounters and warehouse clubs will gain continued traction as global consumers are more likely to focus on prices. However, some soft drivers will still exist; hybrid working models will sustain demand for home consumption, and meat and seafood substitutes will still gain ground as more consumers cut back on meat consumption while growth slows down.