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Industry Analysis – Food Retail
Despite the financial differentiation of wealth in the continents the food retail industry is almost equally spread between Americas, Europe and Asia-Pacific. This is due to food production surpluses in North America, Australia and Western Europe that the global food market is close to equilibrium.
The global food retail industry grew by with compound annual growth rate (CAGR) of 4.8% over last five years, to reach a value in excess of $5.5tn. The greater amount of food is being sold by Supermarkets and Hypermarkets, with the distribution share of over 50%.
Growth in this industry has been and is expected to be primarily driven by demand in the Asia-Pacific region and this region is supposed to remain the fastest growing market. This is due the Chinese and Indian demand for food.
In the recent time (beginning of 2014) the Food and Agriculture Organisation (FAO) noticed that the price of food is declining globally. World food prices fell in May 2014 for the second month in a row, which was associated largely with the reduction in the cost of dairy products, cereals and vegetable oils.
Despite the drop in the price the industry is expected to grow in value as the increased demands for food in fast developing countries as well as the increasing demand for biofuels in European countries are fuelling the increase in volume of food products.
The performance of the food retail industry is forecast to accelerate with an anticipated CAGR of 6.5% for the five-year period 2013 – 2018. Major players within the market are looking forward the increasing sales expected over next few years.
For related reports, why not check out our Food Retail Industry Profiles.