Updated: Sep 14, 2020
The global food and grocery retail market size is valued at USD 13.98 trillion in 2020 and is expected to grow at a growth rate (CAGR) of 5.0% from 2020 to 2027 to USD 17.30 trillion.
The increasing number of middle-class consumers and rising brand consciousness among them have been driving the market for food and grocery retail in developing countries, including India and China.
As a result of the COVID 19 outbreak, the food and grocery retail market is witnessing a significant rise in demand globally.
Gen Z and millennials are leading the shift to e-commerce.
Rising enthusiasm and comfort for digital shopping among the millennials and Generation Z consumers have been boosting the growth of the segment in the food and grocery retail industry.
The corona virus pandemic is hitting at a time when millennials and Generation Z are reaching critical milestones in their lives.
Across the globe, consumers have hunkered down and figured out how to fulfill their needs—from socializing to eating to having fun—through a mix of traditional approaches and new, technology-enabled methods.
Young people are expected to pursue fitness goals, cook more fresh food at home, and seek products and services that support their mental health such as meditation apps.
"Millennials see their local retailer as a full partner in their journey toward a healthier lifestyle, as well as in discovering new and exciting foods, and expect a personalized shopping experience to their individual life goals" said Yuval Canfi, Co-Founder & CEO @ AlgoCart
According to BCG In terms of how they spend their dollars, Gen Z and millennials are leading the shift to e-commerce. Since the pandemic began, 33% of these consumers have increased their online spending, for a net increase of 6%, versus 23% of consumers in older generations.
This acceleration of e-commerce is occurring on two fronts: a shift of existing products, services, and retailers to online, and a surge in digital-only or digital-first products, services, and retailers.