Asia’s Grocery Market Expected To Boom Within Five Years

Wednesday, December 7th, 2016 | 617 Views

According to new forecasts from research organisation IGD, the region’s grocery market will grow at an annual compound growth rate (CAGR) of 6.3 percent to increase by US$1.07 trillion by 2021.

Driving this boom is a combination of inflation, population growth, and rising incomes in the region, the market researcher said. It is also noteworthy that the sales in this region’s market will exceed those of Europe and North America combined within these five years.

Despite several risks to the global economy and the danger of new barriers to trade in particular, the research is optimistic that these can be surmounted, commented IGD chief executive Joanne Denney-Finch. “We expect all regions to grow their grocery markets over the next five years, presenting big opportunities globally for manufacturers and retailers.”

They also project that leading the region will be China, whose grocery market will be worth US$1.61 trillion by 2021, having grown at a CAGR of 5.5 percent. Three other Asian markets would have made the top 10: India will be third, growing at a CAGR 9.1 percent to US$735 billion; Japan will be fifth, growing at a CAGR of 0.7 percent to US$399 billion; and Indonesia in eighth place, with a CAGR of 9.0 percent and a market value of US$305 billion.

Explaining this growth, Ms Denney-Finch said: “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.”